In 2020, the revenue attributable to footwear manufacturing activity, including athletic shoes, casual/outdoor shoes and sports sandals, decreased by 21.3% to US$4,372.9 million, compared with 2019, whereas the volume of shoes shipped decreased by 24.2% to 244.4 million pairs.

The decrease was tied to lower consumer demand resulting from Covid-19, despite Yue Yuen’s improvement in the fourth quarter compared with previous quarters of 2020. The average selling price increased by 3.8% to US$17.89 per pair which can be attributed to the resilient demand for high-end categories in the group’s product portfolio.

The group’s total revenue for the manufacturing business, including footwear, soles, components and others was US$4,735.7 million in 2020, representing a 21.1% decrease from 2019.

Athletic shoe sales were down 17.4% to US$3,752.3 million. Casual/outdoor shoes and sports sandal sales reached US$620.6 million, declining 38.9%. Soles, components and other sales were US$362.8 million, down 18%. Retail sales amounted to US$3,709.2 million, down 5.7%.

Yue Yuen’s gross profit decreased by 27.1 % to US$1,831.0 million, owed to operating deleveraging as a result of reduced capacity utilisation and the decrease in revenue.

Looking forward, the group expects to see a sequential improvement in its performance in 2021, supported by the recovery of global demand, although volatility may persist.