The shares of Ever Glory Intl Group. (EVK) rose 78.57% to $ 3.75 in the after-market.
on November 12, 2020, the Company released its third quarter earnings. EVK’s gross sales were $ 79.9 million, down 29.5 percent from $ 113.3 million in the third quarter of 2019. The main cause of this slowdown was a 44.9% reduction in our wholesale, partially offset by a 10.3% increase in the retail business.
Sales of the fashion brand distribution division with the Company’s brand increased 10.3 percent to $ 34.8 million, compared to $ 31.6 million in the same quarter of 2019. This growth was largely attributable part of an increase in e-commerce revenues. As of September 30, 2020, the Company had 923 retail stores, compared to 1,157 retail stores on September 30, 2019.
Revenue from the company’s wholesale division decreased 44.9 percent to $ 45.1 million, compared to $ 81.7 million in the third quarter of 2019. This decrease was mainly due to a decrease in revenue in Mainland China , Hong Kong, Germany, Europe, Japan, the United States and the United Kingdom.
Net operating profit fell 2.8 percent to $ 23.7 million in the third quarter of 2020, compared to $ 24.4 million in the third quarter of 2019. In the third quarter of 2019, the total gross margin increased from 21.5% to 29.6%.
Ever-Glory International Group, Inc. (Ever-Glory), through its subsidiaries, is a branded fashion clothing retailer . Ever-Glory is also a global supplier of apparel supply chain solutions with a focus on casual clothing, outdoor clothing and sportswear brands.
The Company operates through two segments: wholesale segment and retail segment. The company’s wholesale business consists of wholesale channel sales made primarily to brands and department stores located in Europe, the United States, Japan and the People’s Republic of China (PRC).
The Company’s retail business consists of retail channel sales directly to consumers through retail stores located throughout the PRC, as well as sales through online stores in Tmall, Dangdang mall, JD.com, VIP.com etc.
The Company serves several brands and retail stores, providing a range of supply chain management services in the development and design of fabrics, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution.