Revenue falls for Yue Yuen in first quarter

Hong Kong
Published:  12 May, 2022

Sporting goods distribution and retail group Yue Yuen Industrial Holdings has reported a 4% drop in revenue for the first quarter of 2022 at US$2.39 billion.

The company reports that its performance was largely offset by weak retail sales in mainland China following ongoing Covid-19 lockdown restrictions.

Total revenue for the group’s manufacturing business (including footwear, as well as soles, components and others) increased 12.2% to US$1.53 billion in the period. Meanwhile, revenue attributable to Pou Sheng, its retail subsidiary, declined by 23.5% to US$862.5 million.

Footwear manufacturing revenue increased by 14.8% in the period to US$1.39 billion and shipment volumes increased by 3.8% to 70.9 million pairs.

Average selling price increased by 10.5% in the quarter to US$19.65 per pair, driven by demand for high-end footwear and ongoing efforts by the company to refine product mix and increase high-value orders.

The group remains cautious about growth through the rest of the 2022 financial year given Covid-19 issues, but does not currently expect any rapid deterioration in its operating environment or financial results.