Revenue for the athletic/outdoor shoes category was down 1.9% to US$996.2 million, making up 49.7% of the company’s total revenue. Casual shoes and sports sandals were up 6.4% to US$153.3 million and comprised 7.7% of the total, while soles, components and others were up 9.5% to US$104.4 million and made up 5.2% of sales.

The company’s Greater China retail subsidiary Pou Sheng reported sales of US$749.7 million, which made up 37.4% of its revenue and declined by 12% year-on-year. Total revenue for Yue Yuen’s manufacturing business (including footwear, as well as soles, components and others) was flat at US$1.35 billion.

Footwear shipment volumes were up 9.1% in the period to 58.8 million pairs, while manufacturing average selling price declined by 9.2% to US$19.55 per pair, which the company attributed to a high base effect and changes to its product mix.

In the first quarter of the year, gross profit was up 1.1% to US$503.1 million, while gross profit for the manufacturing business was up 20.2% to US$254.1 million. Profit attributable to the company owners grew by 96.9% year-on-year to US$100 million.

Looking forward, Yue Yuen said: “The group is optimistic about the long-term prospects of its manufacturing business and is confident that the gradual recovery trend taking place in the industry, alongside improving order visibility, will allow the further normalisation of its order book. However, the global footwear industry is expected to remain unsettled in the near term amid an uncertain macroeconomic environment driven by persistent inflation, high interest rates, as well as regional conflicts and its impact on shipping lanes.”