Quarter ended September 30, 2012.
Total sales for the quarter were $69.3 million, an increase of 29.1% compared to $53.7 million in the third quarter of last year. This increase was primarily attributable to increased sales in our retail business as well as our wholesale business. EPS was .15 for the quarter.
Retail sales for the quarter from LA GO GO, the Company's branded retail division, increased 109.5% to $24.4 million, compared to $11.6 million last year. This increase was primarily due to the increase in new stores opened and same store sales. Ever-Glory had 644 LA GO GO stores as of September 30, 2012, compared to 421 LA GO GO stores as of September 30, 2011. Currently, there are LA GO GO stores in more than 20 provinces in China.
"For 2012 , we see our basic strategies of retail business as unchanged, we will continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations," continued Mr. Kang. "We are confident that, continuing to pursue these measures, we can enhance same-store sales, expand LA GO GO's market penetration and increase its brand position in China."
The Company manufactures its apparel products in two manufacturing facilities owned by Catch-Luck and New-Tailun , which is located in the Nanjing Jiangning Economic and Technological Development Zone and Shang Fang Town, respectively, in Nanjing, China. The Company conducts its original design manufacturing (ODM) operations through three wholly owned subsidiaries in China: Goldenway, New-Tailun, and Catch-Luck.
The Company’s subsidiary, Goldenway Nanjing Garments Company Limited (Goldenway) focuses primarily on quality and production control, and coordinating with outsourced contract manufacturers. Nanjing New-Tailun Garments Co. Ltd. (New-Tailun) focuses on the Japanese market, and designs, produces, sells and markets jeans and trousers. Nanjing Catch-Luck Garments Co, Ltd. (Catch-Luck) is geared toward the European market, and it designs and makes products that complement the product lines of its other subsidiaries. Nanjing Tai Xin Garments Trading Company Limited (Tai xin) is primarily engaged in the purchasing of raw materials used in the garment manufacturing.
The Company's retail operation is conducted by the Company's subsidiary, LA GO. As of December 31, 2011, LA GO had 467 retail stores in China to sell its own brand clothing.
About Ever-Glory International Group, Inc.
Based in Nanjing, China, Ever-Glory International Group, Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel company listed on the American Stock Exchange (now called NYSE Amex, and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands. The Company maintains global strategic partnerships in Europe, the United States, Japan and China, conducting business with several well-known brands and retail chain stores. In addition, Ever-Glory operates its own domestic chain of retail stores known as "LA GO GO." The company entered into production and sales cooperation agreements with a number of internationally famous brands such as Matalan, Eddie Bauer, Best-Seller, BB Dakota and others. Ever- Glory employs more than 2,000 people. Currently, 59% of the company's total sales revenue is from Europe, 21% from the United States, 13% from Japan and 6% from within China. For more information about .
Multinational corporations are “thinking about all the world and keeping a balance” between China and other countries, said Edward Kang, the chief executive of Ever-Glory International, a sportswear manufacturer in Nanjing, China. Ever-Glory, which sells to Wal-Mart and Kohl’s, is building a factory in Vietnam. Ever-Glory chairman Edward Kang started La Go Go stores in 2008 to capitalize on rising local affluence and counter slumping exports. The Nanjing-based company now has 154 La Go Go outlets and plans to open as many as 1,000 by 2015. La Go Go parent Ever- Glory International Group Inc. is transforming itself from a supplier to Levi Strauss & Co. into a Chinese fashion chain. The retail unit’s sales climbed 153 percent in the third quarter from a year earlier. In addition to San Francisco-based Levi- Strauss, the company supplies Tesco Plc, the U.K.’s largest retailer, based in Cheshunt. In conjunction with the agreement, Ever-Glory agreed to invest US $1.4 million in La Chapelle Garment, for a 10% stake in La Chapelle. In turn, La Chapelle will use the proceeds to finance the joint venture. Under terms of the agreement, Ever-Glory, through its subsidiary Nanjing Goldenway Garments Co., Ltd., will hold a 60% stake in LA GO GO Fashion, while La Chapelle Garment will hold the remaining 40% interest. La Chapelle Garment and Accessories Co., Ltd. is a leading woman's wear manufacturer and distributor. It has set up a distribution network of 350 specialty counters in more than 40 cities in China.