World Footwear

Companies

Yue Yuen with 136.7 million US dollars loss

Sep 11, 2020 Hong Kong
Yue Yuen with 136.7 million US dollars loss
The world's largest shoe manufacturer has been badly hit by the COVID-19 pandemic. Yue Yuen has posted a net loss of 136.7 million US dollars for the first half of 2020, which compares to net income of 165.9 million US dollars for similar period in 2019
For the six months ended on the 30th of June 2020, the group recorded revenue of 4 085.6 million US dollars, representing a decrease of 19.4%, compared with the corresponding period last year. The loss attributable to owners of the company was 136.8 million US dollars, compared to a profit attributable to owners of the company of 165.9 million US dollars recorded for the corresponding period of last year. The basic loss per share for the first half of 2020 was 8.49US cents, compared to the basic earnings per share of 10.28US cents for the corresponding period of last year.

In the six months ended on the 30th of June 2020, revenue attributed to footwear manufacturing activity (including athletic shoes, casual/outdoor shoes and sports sandals) decreased by 16.7% to 2 240.8 million US dollars, compared with the similar period last year. The volume of shoes shipped decreased by 20.4% to 129.9 million pairs. The decrease was mostly due to lower operating efficiency amid delayed shipments, and reduced and cancelled order books from customers in response to lower consumer demand resulting from the COVID-19 pandemic. The average selling price increased by 4.6% to 17.25 US dollar per pair, as compared with the same period of last year, which was primarily due to changes in the group’s product portfolio. Revenue attributed to the group’s manufacturing business (including footwear, as well as soles, components and others) was 2 418.5 million US dollars during the period, representing a decrease of 17.5% as compared similar period in 2019.

In the six months ended on the 30th of June 2020, revenue attributable to Pou Sheng, the group’s retail subsidiary, decreased by 15.3% to 1 667.1 million US dollars, compared to 1 968.1million US dollars in the corresponding period of last year. As of that sate Pou Sheng had 5 597directly operated retail outlets and 3 839 stores operated by sub-distributors across the Greater China region.

Image credits: Eric Prouzet on Unsplash

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