China retail situation lets Yue Yuen down
Outsource athletic footwear manufacturing group Yue Yuen has reported revenues of $4.7 billion for the first six months of 2022, down by 2% year on year.
It said this fall in revenue was mostly by weak retail sales in mainland China following continued covid-19 outbreaks there.
Footwear manufacturing’s share of the total revenue was $2.9 billion and the ground shipped 144.1 million pairs over the six-month period. These figures represent growth of 16% in value and of 5.6% in volume. Production of athletic and sports footwear contributed almost $2.5 billion in revenue.
But revenue for revenue attributed to its Pou Sheng retail subsidiary, declined by 24.7% to reach just over $1.5 billion.
As of June 30, Pou Sheng had 4,455 directly operated retail outlets in China and 3,506 sub-distributors stores. These figures mean it closed more than 450 stores in the previous 12 months.
