Fashion Retailer Ever-Glory Posts 4% Revenue Growth; Investors Disappointed
Shares in the Chinese retailer inched down 5 cents to $3.95 per ADS Thursday after the company posted its third-quarter results.
The stock of Ever-Glory International Group Inc. (Nasdaq: EVK) closed down 1 percent Thursday at $3.95 per American depositary share after the company said its revenue in the third quarter increased a disappointing 4 percent year-over-year.
The Nanjing company, a fashion apparel retailer, said its revenue in the three months through September reached $125.5 million compared with $120.3 million during the same period last year. The company attributed the increase to a 24 percent gain in its wholesale business, offset by a 22 percent decline in its line of retail.
Its income, Ever-Glory said, was $3.3 million, or 22 cents per share, compared with $3.2 million a year ago.
The company's selling expenses in the third quarter rose 13 percent year-over-year to $17.6 million, while costs in its general and administrative segment declined 16 percent to $8.5 million.
"During the third quarter, we maintained our focus on developing retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables," Yihua Kang, Ever-Glory's chairman, president, and chief executive officer, said in a statement today.
He added that as of Sept. 30, the company operated a nationwide network of 1,396 stores.
"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in the light of weak micro environment and enhancing our account receivables," Kang said.
"Going forward, we'll implement a stricter client evaluation system and remain diligent in account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability."
Ever-Glory, trading in the U.S. since 2008, offers apparel to women in China under its own brands "La go go," "Velwin," "Sea To Sky," and "idole."