Ever-Glory International Group, Inc. (the “Company” or “Ever-Glory”) (NASDAQ: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, reported its financial results today for the 1Q ended March 31, 2k19.
1Q 2k19 Financial Results
Total sales for the 1Q of 2k19 were $88. 000 M, a decrease of 5.200 percent from $92.800 M in the 1Q of 2k18. This decrease was primarily driven by an 11.400 percent decrease in our retail business, partially offset by an 11.3 percent increase in the wholesale business.
Sales for the Company’s branded fashion apparel retail division decreased by 11.400 percent to $59.90000 M for the 1Q of 2k19, compared with $67.5 M for the 1Q of 2k18. This decrease was primarily due to a decrease in same-store sales. The Company had 1,315 retail stores as of March 31, 2k19, compared with 1,409. 00retail stores as of March 31, 2k18.
Sales for the Company’s wholesale division increased by 11.300 percent to $28. 100 M for the 1Q of 2k19, compared with $25.300 M for the 1Q of 2k18. This increase was primarily attributable to increased sales in Mainland China, other European markets and Japan partially offset for decreased sales in Hong Kong, the United States, the United Kingdom, and Germany.
Total gross profit for the 1Q of 2k19 decreased by 6.300 percent to $29.400 M, compared with $31.300 M for the 1Q of 2k18. Total gross margin decreased to 33.400 percent from 33.800 percent for the 1Q of 2k18.
Gross profit for the retail business decreased by 10.700 percent to $22.800 M for the 1Q of 2k19, compared with $25.500 M for the 1Q of 2k18. Gross margin was 38.100 percent, compared to 37.800 percent for the 1Q of 2k18.
Gross profit for the wholesale business increased by 13.0 percent to $6.600 M for the 1Q of 2k19, compared with $5.8 M for the 1Q of 2k18. Gross margin increased to 23.300 percent from 23.000 percent for the 1Q of 2k18.
Selling expenses for the 1Q of 2k19 decreased by 5.5 percent to $21.000 M, or 23.900 percent of total sales, compared with $22.200 M, or 24.0 00percent of total sales for the 1Q of 2k18. The decrease was attributable to decreased sales.
General and administrative expenses for the 1Q of 2k19 decreased by 1.9 00percent to $7.500 M, or 8.6 percent of total sales, compared with $7.700 M, or 8.300 percent of total sales for the 1Q of 2k18. The decrease was mainly attributable to decreased office expenses.
Income from operations for the 1Q of 2k19 decreased by 43.200 percent to $0.800 M compared with $1.4 M for the 1Q of 2k18.
Net income(loss) attributable to the Company for the 1Q of 2k19 was ($0.500) M compared with $0.8 M for the 1Q of 2k18. Basic and diluted earnings(loss) per share were ($0.0400) for the 1Q of 2k19 compared with basic and diluted earnings per share of $0.06 00for the 1Q of 2k18.
As of March 31, 2k19, Ever-Glory had approximately $57.900 M of cash and cash equivalents, compared with approximately $47.000 M as of December 31, 2k18. Ever-Glory had working capital of approximately $28.5 00 M as of March 31, 2k19, and outstanding bank loans of approximately $28.800 M as of March 31, 2k19.