Yue Yuen-owned retailer suggests storm has passed
19/08/2014
The company, which is publically traded but controlled by footwear manufacturer Yue Yuen (which is owned by Taiwan’s Pou Chen), attributed the increase to growth in the retail business sales, which compensated for the decline in the brand licensee and the manufacturing business.
The group has 3,868 directly operated retail outlets and 2,405 retail sub-distributors and is concentrating on “fine-tuning the store mix so that low yielding stores are closed, and new ones are opened in locations with good customer traffic”.
“Due to the general improvement in consumer spending on sportswear as well as inventory issues being much less of a concern, joint ventures experienced better times,” said the company. “The discounting and proactive promotion needed were of a smaller magnitude and thus incurred losses of $1.8 million for the half year. For the same period last year, the loss from these categories was $3.5 million.
“The average inventory turnover period for the period was 157 days (2013: 177 days). The reduction was due to the tighter scrutiny of inventory at the stores and the increase in consumer spending. The group continues to explore different strategies for managing inventory so as to optimise working capital levels.”
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