Soft demand hurts Yue Yuen
Athletic footwear manufacturing group Yue Yuen achieved revenues of $4.1 billion in the first six months of this year, a fall of 11.8% compared to the same period last year.
It said this decline was mostly due to weakness in its manufacturing business resulting from “softer global demand for footwear”. In turn, the reasons it put forward for soft demand included an “inventory digestion cycle taking place across the industry”.
Revenue from footwear manufacturing activity in the six-month period was a little under $2.4 billion, down by 18.1% year on year. It produced a volume of 109.8 million pairs, a decline of 23.8%.
However, the average selling price increased by 7.5% to $21.67 per pair, led by what Yue Yuen called a “relatively resilient demand for the group’s high-end footwear”.
