Yue Yuen reports mixed results
Footwear manufacturing group Yue Yuen reported a 3.4% year-on-year decline in consolidated revenue to $4.02 billion for the first half of 2024.
Footwear manufacturing revenue increased by 1.3% to $2.41 billion, despite a 9.9% rise in shoe shipments to 120.7 million pairs, as the average selling price fell 7.8% to $19.98 per pair.
Revenue from the U.S. market dipped slightly to $701.2 million, while Europe saw a 2% decline to $682.2 million. However, the company’s China retail subsidiary, Pou Sheng, experienced a 12.7% y/y revenue drop to $1.38 billion, driven by weak store traffic in mainland China.
In local currency (RMB), Pou Sheng's revenue declined 8.9%. Despite this, the company has been focusing on retail refinement, closing 45 stores in the Greater China region to prioritise larger-format outlets, which now make up 21% of its store count.
Profit attributable to shareholders surged 120.6% to $184.4 million, with manufacturing profits up 177.5% to $155.4 million. Pou Sheng's profit increased by 9.9%
