Ever-Glory sales slide
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Chinese fashion retailer Ever-Glory International says its sales fell 11.6 per cent in the three months to June 30.
Total sales for the quarter were US$75.7 million, the slide primarily due to a 6.8 per cent decrease in its retail business to $45.9 million and an 18.1 per cent decrease in its wholesale operation to 29.8 million.
Ever-Glory had 1204 retail stores as at June 30, 49 more than at the same time last year.
Total gross profit for the quarter increased 2.4 per cent to $30 million.
Based in Nanjing, China, Ever-Glory retails branded womens fashion apparel through its own store network under the brands La Go Go, Velwin, Sea To Sky and Idole in China.
Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services well-known international brands and retail stores by providing supply chain management, fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution etc.
Questions & Answers
Q.What is the primary reason for the overall decline in Ever-Glory's sales during the quarter?
What is the primary reason for the overall decline in Ever-Glory's sales during the quarter?
The main reason for the sales slide was an 18.1 per cent decrease in its wholesale operation, which contributed US$29.8 million to total sales. The retail business also saw a 6.8 per cent decrease.
Q.Did Ever-Glory's gross profit also decrease in line with the fall in sales?
Did Ever-Glory's gross profit also decrease in line with the fall in sales?
No, despite the decrease in total sales, Ever-Glory's total gross profit for the quarter actually increased by 2.4 per cent, reaching US$30 million. This shows a different trend from the sales figures.
Q.How many retail stores does Ever-Glory operate, and has this number changed recently?
How many retail stores does Ever-Glory operate, and has this number changed recently?
Ever-Glory operated 1204 retail stores as of June 30. This represents an increase of 49 stores compared to the number they had at the same time in the previous year.
Q.What types of fashion products and services does Ever-Glory offer beyond its own retail brands?
What types of fashion products and services does Ever-Glory offer beyond its own retail brands?
Beyond its La Go Go, Velwin, Sea To Sky, and Idole retail brands, Ever-Glory also provides global apparel supply chain solutions. They focus on middle-to-high end casual wear, outerwear, and sportswear for international brands.
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