Yue Yuen Industrial Reports Mixed Q1 2025 Results

Yue Yuen Industrial (Holdings) ( (YUEIF) ) has released its Q1 earnings. Here is a breakdown of the information Yue Yuen Industrial (Holdings) presented to its investors.

Yue Yuen Industrial (Holdings) Limited is a leading manufacturer in the footwear industry, known for producing athletic, casual, and sports sandals, and operates a significant retail business through its subsidiary Pou Sheng International in Greater China.

In the first quarter of 2025, Yue Yuen Industrial reported a revenue increase of 1.3% to US$2,029.5 million compared to the same period last year, with a profit attributable to owners of the company amounting to US$75.8 million, marking a 24.2% decline from the previous year. The company faced challenges in production efficiency and rising labor costs, impacting its profitability despite a steady demand for its footwear products.

Key financial highlights include a 7.8% increase in revenue from footwear manufacturing and a 5.3% rise in shipment volumes. However, the gross profit margin decreased to 22.9% due to uneven production levels and increased labor expenses. Pou Sheng’s revenue decreased by 6.5% amidst a competitive retail environment in China, despite efforts to enhance its omni-channel capabilities.

Looking ahead, Yue Yuen remains optimistic about the long-term prospects of the sports industry, despite global economic headwinds. The company plans to diversify its manufacturing capacity into regions like Indonesia and India to support sustainable growth and maintain operational resilience through strategic cost controls and digital transformation initiatives.