Ever-Glory Q3 total sales $118.6 million, down 15.3%Staff writer ▼ | November 16, 2015
Ever-Glory International Group reported its financial results for the third quarter ended September 30, 2015. Total sales were $118.6 million, a decrease of 15.3% compared to $139.9 million in Q3 last year.
Ever-Glory International A 21.1% decreased sales in the retail business
For the third quarter of 2015, retail sales from the Company's branded fashion apparel retail division, decreased 21.1% to $47.3 million compared to $59.9 million last year. This decrease was primarily due to the decrease in same store sales. The company had 1,188 retail stores as of September 30, 2015, compared to 1,137 retail stores at September 30, 2014.
For the third quarter of 2015, wholesale sales decreased 10.9% to $71.3 million, compared to $80.1 million last year. This decrease was primarily due to decreased sales in P.R.C, Germany, Europe-Other and Japan.
Total gross profit for the quarter decreased 4.4% to $32.3 million, compared to $33.8 million last year. Total gross margin increased 310 basis points to 27.3% compared to 24.2% last year.
Gross profit for retail business increased 3.6% to $22.4 million, compared to $21.7 million last year. Gross margin increased 1130 basis points to 47.5% compared to 36.2% last year.
Gross profit for wholesale business decreased 18.6% to $9.9 million, compared to $12.2 million last year. Gross margin decreased 130 basis points to 13.9% compared to 15.2% last year.
Selling expenses for the quarter increased 7.8% to $19.2 million compared to $17.8 million last year. As a percentage of sales, selling expenses increased 350 basis points to 16.2% compared to 12.7% last year.
General and administrative expenses for the quarter decreased 3.8% to $9.3 million compared to $9.7 million last year. As a percentage of total sales, general and administrative expenses increased 100 basis points to 7.9% compared to 6.9% last year.
Income from operations for the quarter decreased 39.8% to $3.8 million compared to $6.3 million last year. As a percentage of sales, income from operations decreased 130 basis points to 3.2% compared to 4.5% last year.
Net income for the quarter decreased 47.0% to $2.7 million compared to $5.1 million last year. Basic and diluted earnings per share were $0.19 and $0.35 for the three months ended September30, 2015 and 2014, respectively.
As of September 30, 2015, Ever-Glory had approximately $26.9 million of cash and cash equivalents, compared to approximately $34.1 million as of December 31, 2014. Ever-Glory had working capital of approximately $50.2 million as of September 30, 2015, and outstanding bank loans of approximately $51.3 million as of September 30, 2015. ■