Wholesale & retail segments perform well at Ever-Glory
During the second quarter of 2011, net sales increased 85.8% to $42.9 million compared to $23.1 million in the second quarter of 2010. The increase was attributable to increased sales in Ever-Glory's retail business as well as its wholesale business.
Retail sales from LA GO GO, the Company's branded retail division, increased 91.8% to $9.3 million, compared to $4.8 million in the second quarter of 2010. This increase was primarily due to the increase in same store sales and new stores opened. Ever-Glory had 368 LA GO GO stores as of June 30, 2011, compared to 210 LA GO GO stores at June 30, 2010. LA GO GO stores are located in more than 20 provinces in China.
Sales generated from the Company's wholesale business increased 84.2% to $33.7 million, compared to $18.3 million in the second quarter of 2010. This increase was primarily attributable to increased sales in Japan, the United States, the United Kingdom, the PRC and Germany. The increased sales in the wholesale segment was primarily due to the following factors: (i) the progressive adjustment of our wholesale client and product portfolio in 2009 and 2010 which resulted in an increase of orders in the wholesale segment; (ii) in response to the global economic uncertainty, in mid 2010 we adjusted our sales strategy to develop more wholesale customers in China. (iii) enlargement of our outsourcing base to Vietnam and Cambodia starting from the third quarter of 2010, which significantly increased our production capacity to process more orders;
In the second quarter of 2011, gross profit was $10.4 million, an increase of 129.7% compared to the same period in 2010. Gross margin increased 4.6% to 24.1% in the second quarter of 2011, compared to 19.5% in the second quarter of 2010. The increase was mainly due to lower outsourced manufacturing costs.
"In the second quarter of 2011, sales increased significantly in both our wholesale and retail segments," commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "We are especially encouraged by our strong performance. The total number of LA GO GO stores in China increased from 293 at the end of 2010 to 368 stores as of June 30, 2011, we expect to open an additional 80-100 new stores in 2011 based on the 293 stores we had at the end of 2010.
"In 2011, we plan to continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations," continued Mr. Kang. "We are confident that, through these measures, we can enhance same-store sales, expand LA GO GO's market penetration and increase its brand influence in China."
Selling expenses increased 82.9% to $3.8 million in the second quarter of 2011 from $2.1 million in the second quarter of 2010. The increase was attributable to the enlarged number of retail employees and increased average salaries, as well as increased store decoration and marketing expenses associated with the promotion of the LA GO GO brand.
POST: 2024-05-13
More Apparel Brand News
- 09-02· The Tech World Gets a Fashionable Upgrade Thanks to Jeffrey’s New Palo Alto Store
- 09-02· 3 Fancy But Easy BBQ Recipes to Grill Before Summer Is Over
- 04-29· Meet the Women Changing Argentina’s Wine Industry
- 11-15· Twice Reveals a New Album—And the Secret to Their Selfie-Ready K-Pop Style
- 11-15· How 3 Indie Labels Built Seoul’s Reputation for Radically Cool Shoes
- 11-15· Meet the It-Brit Milliner Whose Fabulous Faux Fur Creations Are Taking Over London
- 11-15· Athleisure Is No Longer a Fad—It’s the Future of Mens Fashion
- 11-15· Why Gigi Hadid Is Swapping Party Heels for Fancy Flats This Holiday Season
- 11-15· How to Lose a Friend in 10 Days
- 11-15· The Chic New Way to Stay Healthy at 35,000 Feet in the Air
- 04-261 :
- 04-252WEIPENG : weipeng fashion
- 10-303WEEKEN : rCarwalwelregrogo
- 10-304WEEKEN : rCarwalwelregrogo
- 10-305WEEKEN : rCarwalwelregrogo
- 10-306WEEKEN : rCarwalwelregrogo
- 10-307WEEKEN : rCarwalwelregrogo
- 10-308WEEKEN : rCarwalwelregrogo
- 10-309WEEKEN : rCarwalwelregrogo
- 10-3010WEEKEN : rCarwalwelregrogo
Fashion News
- The Tech World Gets a Fashionable Upgrade Thanks to Jeffrey’s New Palo Alto Store
- 3 Fancy But Easy BBQ Recipes to Grill Before Summer Is Over
- Meet the Women Changing Argentina’s Wine Industry
- Twice Reveals a New Album—And the Secret to Their Selfie-Ready K-Pop Style
- How 3 Indie Labels Built Seoul’s Reputation for Radically Cool Shoes
- Meet the It-Brit Milliner Whose Fabulous Faux Fur Creations Are Taking Over London