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Ever-Glory International Q1 total sales $91.7 million

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Staff writer ▼ | May 14, 2016
Ever-Glory International Group reported its financial results for the first quarter ended March 31, 2016.
Ever-Glory
Ever-Glory   A decrease of 6.3%
Total sales for the first quarter of 2016 were $91.7 million, a decrease of 6.3% from $97.9 million in the first quarter of 2015. This decrease was primarily attributable to an 8.5% decrease in sales in company's retail business and a 2.2% decrease in company's wholesale business.

Retail sales for the Company's branded fashion apparel retail division decreased by 8.5% to $59.1 million for the first quarter of 2016, compared with $64.6 million for the first quarter of 2015. This decrease was primarily due to the decrease in same-store sales. The Company had 1,171 retail stores as of March 31, 2016, compared with 1,206 retail stores as of March 31, 2015.

Sales for the Company's wholesale division decreased by 2.2% to $32.6 million for the first quarter of 2016, compared with $33.3 million for the first quarter of 2015. This decrease was primarily due to decreased sales in China, Germany and the United Kingdom, partially offset by increased sales in other European markets, Japan and the United States.

Total gross profit for the first quarter of 2016 decreased by 7.4% to $28.3 million, compared with $30.6 million for the first quarter of 2015. Total gross margin decreased by 40 basis points to 30.9% from 31.3% for the first quarter of 2015.

Gross profit for the retail business decreased by 5.7% to $22.1 million for the first quarter of 2016, compared with $23.5 million for the first quarter of 2015. Gross margin increased by 110 basis points to 37.4% from 36.3% for the first quarter of 2015.

Gross profit for the wholesale business decreased by 12.8% to $6.2 million for the first quarter of 2016, compared with $7.2 million for the first quarter of 2015. Gross margin decreased by 240 basis points to 19.1% from 21.5% for the first quarter of 2015.

Selling expenses for the first quarter of 2016 increased by 3.2% to $20.9 million, or 22.8% of total sales, compared with $20.3 million, or 20.7% of total sales for the first quarter of 2015. The increase was mainly attributable to increased average salaries as well as increased store decoration and marketing expenses associated with the promotion of company's retail brands.

General and administrative expenses for the first quarter of 2016 increased slightly to $6.9 million, or 7.6% of total sales, compared with $6.9 million, or 7.1% of total sales for the first quarter of 2015.

Income from operations for the first quarter of 2016 decreased by 86.0% to $0.5 million compared with $3.4 million for the first quarter of 2015.

Net loss attributable to the Company for the first quarter of 2016 was $0.4 million compared with net income attributable to the Company of $2.4 million for the first quarter of 2015. Basic and diluted loss per share was $0.02 for the first quarter of 2016 compared with basic and diluted earnings per share of $0.16 for the first quarter of 2015.

As of March 31, 2016, Ever-Glory had approximately $34.6 million of cash and cash equivalents, compared with approximately $22.7 million as of December 31, 2015. Ever-Glory had working capital of approximately $54.2 million as of March 31, 2016, and outstanding bank loans of approximately $42.4 million as of March 31, 2016.


 

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