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Yue Yuen profit up on mainland retail sales

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Yue Yuen Industrial (Holdings), the world's biggest sports shoe maker, said fiscal third-quarter net profit rose 21 per cent, mainly driven by its mainland retail sales.

Profit for the April-June quarter rose to US$98.05 million from US$80.9 million a year ago, after stripping out the US$168.25 million profit for the six months to March that it previously announced.

For the nine months to the end of June, Yue Yuen said net profit was US$266.3 million, up 17.2 per cent from US$227.2 million a year ago.

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Turnover between April and June rose 18.4 per cent to US$1.017 billion from US$859 million a year earlier, faster than the 16.5 per cent increase for the six months ended March.

Yue Yuen is hoping to expand its wholesales and retail operations to compensate for the narrowing margin at its manufacturing business due to rising labour and raw material costs.

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Its nine-month gross profit margin was 23 per cent, slightly lower than the 23.4 per cent posted for the six months ended March.

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