Are sneakers bound to slow down? Possibly, as sport shoe giant Yue Yuen drop by 5,8% in the quarter

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Sneakers are slowing down perhaps. In 2018 first quarter, “athletic shoes” made by Yue Yuen, an Asian footwear manufacturing giant, decreased by 5,8%. For the records, sneakers are worth 47,4% of the group’s yearly huge turnover. Yue Yuen, headquartered in Hong Kong, increased its revenues by 8,9%, which therefore reached 2,287 billion dollars (1,96 billion euros), in the first three months of the year. Such boost, though, does not depend on higher production, but it rather comes from the enhancement of retail business, run by Pou Sheng, a subsidiary of the group. Gross profits (+9,8%) went up to 577,4 million dollars, that is 494 million euros, but earnings directly coming from the company ownership dropped by 23,3%. “Rising operational efforts, along with declining sales in the manufacturing industry, reduced non-recurring earnings for the period and higher financial costs mainly caused the business to lose such profits”, pointed out the company in a release. Overall revenues deriving from manufacturing of shoes (sneakers, casual, outdoor and sport sandals) decreased by 6,3%, whereas production dropped, in terms of volumes, by 5,1%, that is, 76,6 million pairs of shoes less.

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