EXEC: First Quarter Footwear Manufacturing Sees Mixed Results

Source:China Sport ShowRelease time:18-Apr-2024Clicks:

Article From：sgbonline

Yue Yuen Industrial (Holdings) Limited, one of the largest manufacturers of footwear for most major outdoor and athletic brands, reported that its footwear manufacturing segment revenue was fairly flat in March 2024, growing 0.2 percent year-over-year (YoY) after declining 12.2 percent in February, and a 12.5 percent increase in January when the company had very easy comps against the prior year.

The resulting Yuen Yuen footwear manufacturing first quarter (Q1) revenues were down a flattish 0.1 percent, a very slight improvement from the February year-to-date results.

Yue Yuen’s footwear manufacturing business trades and reports in U.S. dollar (US$).

Analysts proved to be correct when some noted in recent reports that the footwear market should not get too excited with the increase in Yue Yuen’s footwear manufacturing shipments in January 2024 or the decline in February in China, Taiwan or Vietnam due to the shifting dates for Chinese New Year (the 16-day holiday in Asia that sees many workers from the outer provinces returning home from working in the coastal provinces where most factories operate).

In 2024, the Chinese New Year was on February 10. Last year, it was on January 22.

Pou Sheng China, the China retail component of Yue Yuen, saw retail sales decline 9.4 percent in RMB terms in March after increasing nearly 35 percent in February.

Pou Sheng trades and reports in Chinese renminbi (RMB) or “Yuan” currency.

Yue Yuen consolidated sales were down 4.9 percent to $662.2 million in March. In the first quarter, overall Yue Yuen sales remained down 4.9 percent to $2.00 billion, with a decline of flat footwear manufacturing segment unable to offset a deeper 7.5 percent decline in the Pou Sheng retail business.

Feng Tay Enterprises, one of the longest-tenured manufacturers of Nike footwear, reported manufacturing revenues increased nearly 11.0 percent in March to NT$5.95 billion after a 7.9 percent decline in February and a 26.5 percent increase in January.

The resulting first quarter trend for Feng Tay was a 6.5 percent increase for the three-month period to NT$20.62 billion.

Feng Tay reports financials in the New Taiwan Dollar (NT$).