Softer demand and high inventory hurt Yue Yuen
Outsource athletic footwear manufacturing group Yue Yuen has reported revenues of $2.1 billion for the first three months of 2023, a fall of 12% year on year.
Weakness in its manufacturing business because of “softer global demand for footwear amid high inventory levels across the industry” were the main reasons for this downturn, the Hong Kong-based group said. It pointed out, though, that it had seen “relatively resilient demand” for its higher-end products.
In total, it said it had shipped 53.9 million pairs during the three-month period, a decline in volume of 24%.
The group said it remained optimistic about the long-term prospects of its manufacturing business. However, it said “current macroeconomic headwinds” would continue to weigh on orders and global demand in the near term.
