Ever-Glory International Group Inc., a leading apparel supply chain manager and retailer based in China, today reported its financial results for the second quarter ended June 30, 2011, reflecting increased sales in its retail and wholesale businesses.
During the second quarter of 2011, Ever-Glory reported an 85 percent increase in net sales to $42.9 million compared to $23.1 million in the second quarter of 2010.
Second quarter net income was $2.3 million, or $0.15 per diluted share, an increase of 182.1 percent from $0.8 million, or $0.05 per diluted share, in the second quarter of 2010.
Second quarter 2011 gross profit was $10.4 million, an increase of 129.7 percent compared to the same period in 2010. Gross margin increased 4.6 percent to 24.1 percent in the second quarter of 2011 compared to 19.5 percent in the second quarter of 2010.
As of June 30, 2011, Ever-Glory had approximately $10.7 million of cash and cash equivalents, compared to approximately $3.7 million as of December 31, 2010. The company had working capital of approximately $29.6 million as of June 30, 2011, and outstanding bank loans of approximately $21.0 million.
The company also reported that total number of LA GO GO stores in China increased from 293 at the end of 2010 to 368 stores as of June 30, 2011. Ever-Glory plans on opening an additional 80-100 new stores in 2011.
“In 2011, we plan to continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations,” Yi Hua Kang, Ever-Glory CEO, president and chairman stated in the press release. “We are confident that, through these measures, we can enhance same-store sales, expand LA GO GO’s market penetration and increase its brand influence in China.”
For the third quarter of 2011, the company anticipates sales to remain relatively flat, offering guidance of total net sales between $42.0 million and $52.0 million and net income of $2.0 million to $2.5 million. For full year 2011, Ever-Glory anticipates total net sales between $180 million and $215 million and net income between $7.3 million and $9.0 million.
For more information visit www.everglorygroup.com
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