Companies

Yue Yuen announces nine-month results

Nov 19, 2025 Hong Kong

The Hong Kong-based group reported a 1.1% year-on-year drop in revenue in the first nine months of the year. The positive performance of the manufacturing business was not enough to offset the decline at Pou Sheng

Yue Yuen recorded a revenue of 6.017 billion US dollars in the first nine months of 2025. This represents a 1.1% decrease, as compared to the same period of last year.

During this period, footwear manufacturing (including athletic/outdoor shoes, casual shoes, and sports sandals) contributed 3.96 billion US dollars to the company’s total revenue, marking a 4.6% increase on a comparable basis to the same period in 2024.

This growth reflects a 1.3% increase in volume to 189.4 million pairs, as well as a 3.2% increase in the average selling price to 20.88 US dollars – attributed to a high-quality order mix.

The manufacturing business as a whole (including not only footwear, but also soles, components, and others) contributed 4.23 billion US dollars to the total revenue, which is an increase of 2.3% as compared to the first nine months of 2024.

Conversely, Pou Sheng’s revenue fell by 7.9% year-on-year to 1.79 billion US dollars in the year ending September, mainly due to weaker foot traffic across mainland China. The company experienced a significant decline in sales through both offline direct retail and sub-distributor channels, which was partially offset by relatively robust omnichannel performance.

In the first nine months of the year, the group’s gross profit fell by 6.9% to 1.37 billion US dollars, with the overall gross margin falling by 1.4 percentage points year-on-year to 22.8%. Within the manufacturing business, gross profit declined by 4.8% to 773.5 million US dollars, and the margin fell by 1.3 percentage points to 18.3%.

According to the company, this deterioration was driven by uneven production levels across plants, lower-than-expected efficiency in certain production lines and increased labour costs due to a larger workforce and rising regional wages.

Meanwhile, Pou Sheng recorded a gross margin of 33.5%, which was down by 0.5 percentage points, as compared to the same months of the previous year. This decline was primarily caused by aggressive promotions in the retail market and higher average markdowns, despite efforts to improve its inventory mix and optimise its sales structure.

Yue Yuen reported that profit attributable to owners amounted to 278.7 million US dollars, a 16.0% decrease on a comparable basis to the first nine months of the 2024 financial year.

Outlook

The Group remains positive about the long-term outlook of the sports industry. This is supported by the growing ‘athleisure’ trend, as well as the upcoming major international sporting events, including the 2026 FIFA World Cup, the Asian Games, and the Winter Olympics.

However, the company still anticipates a volatile short-term environment due to tariff pressures, inflation, weak consumer confidence, and geopolitical disruptions affecting logistics and the supply of raw materials. Although shipment volumes are expected to rise in the fourth quarter, which is traditionally a peak season, uncertainty will persist.

In the meantime, Yue Yuen is advancing its capacity diversification strategy by expanding into regions such as Indonesia and India. The company is also focusing on more precise workforce planning, controlled capacity expansion and agile manufacturing to maintain efficiency. Ongoing digital transformation, cost discipline and prioritising higher-quality orders will protect profitability and support sustainable growth.

Image Credits: blocks on Unsplash

Hong Kong Companies Footwear Manufacturing Quarter Results Results Yue Yuen