The company reported revenue of US$6.01 billion, decreasing by 1% year-on-year. Profit attributable to owners of the company fell 16% to US$278.7 million.
Total revenue of the group’s manufacturing business, which includes footwear, soles, components and other products, increased by 2.3% to US$4.23 billion for the nine-month period. Footwear manufacturing revenue increased by 4.6% to US$3.95 billion, with shipment volumes up 1.3% to 189.4 million pairs. The average selling price rose 3.2% to US$20.88 per pair, driven by a higher-quality order mix.
Revenue from the group’s retail arm, Pou Sheng, fell 7.9% to US$1.78 billion (down 7.7% in RMB terms), with sales affected by volatile foot traffic and weaker offline and sub-distributor sales in mainland China, despite stable omni-channel performance. Pou Sheng’s profit margin was 33.5% during the period, down on account of aggressive promotions across the retail industry and higher average mark downs.
Group gross profit decreased 6.9% to US$1.37 billion, with the overall gross profit margin falling to 22.8%.
Non-recurring profit for the period was US$16.7 million, compared with US$26.4 million a year earlier. Excluding non-recurring items, recurring profit attributable to owners of the company was US$262 million, down 14.2% from US$305.2 million in the same period last year.
Outlook
Yue Yuen sees long-term growth opportunities driven by the accelerating athleisure trend and upcoming global sporting events, remaining confident in its position as a key supplier to major brands. While expecting higher shipments in the fourth quarter, the Group anticipates persistent short-term challenges from tariffs, inflation and supply chain disruptions. It is continuing to diversify capacity into markets such as Indonesia and India, including the ramp-up of its new Central Java facility, with plans to prioritise responsiveness, disciplined workforce planning and cost control to protect efficiency and profitability.
