Ever-Glory International Group, Inc. [NASDAQ; EVK] has shared the financial results for the third quarter completed September 30, 2021. During the third quarter, the company has kept its focus on developing the retail business through its multi-brand strategy and store network optimization initiative, while enhancing its wholesale business by optimizing customer portfolio and improving its account receivables.”
In the third quarter of 2021, the total sales reached $94.4 million. It represents a growth of 18.1% from $79.9 million in the third quarter of 2020. This surge was mainly propelled by a 38.0% increase in its wholesale business partially compensated by a 7.6% decrease in the retail business. On the other hand, the sales for the Company’s branded fashion apparel retail division reduced by 7.6% to $32.2 million for the third quarter of 2021, compared with $34.8 million for the third quarter of 2020.
Furthermore, the total gross profit for the third quarter of 2021 plunged by 2% to $23.2 million, compared with $23.7 million for the third quarter of 2020. On the other hand, the Total gross margin for the third quarter of 2021 plunged to 24.6% from 29.6% for the third quarter of 2020. EVK’s gross profit for the retail business plunged by 10.3% to $13.0 million for the third quarter of 2021, compared with $14.5 million for the third quarter of 2020.
Additionally, the company disclosed that the third-quarter results are linked with its ability to improve operating leverage. The company has full confidence in the long-term prospects of its business. EVK is hoping to continue implementing its margin enhancement and cost control measures to further reinforce the profitability of its business.