Wednesday, March 28, 2012

Ever-Glory International Group, Inc. (EVK) Reports Fiscal Year 2011 Financial Results and 2012 Guidance

Ever-Glory International Group, a leading apparel supply chain manager and retailer in China, today reported its financial results for its fiscal year ended December 31, 2011, reflecting strong sales and expansion initiatives.

“We’re very pleased with the significant progress we made in 2011, as sales in both our retail and wholesale segments continued to increase,” Edward Yihua Kang, chairman of the board and CEO of Ever-Glory stated in the press release. “We are especially encouraged by achieving the objectives of LA GO GO store expansion. As of December 31, 2011, we had 467 LA GO GO stores in China; we surpassed our goal of opening an additional 80 to 100 new stores in 2011! We had 293 stores at the end of 2010.”

For the fiscal year ended December 31, 2011, net sales increased 60.9 percent to $215.8 million from $134.1 million reported in 2010.

Total gross profit for 2011 increased 70.3 percent to $44.5 million from $26.2 million reported in 2010. Gross margin increased to 20.6 percent in 2011, compared to 19.5 percent in 2010.

Full-year 2011 income from operations increased 82.2 percent to $12.1 million from $6.6 million in 2010.

As of December 31, 2011, the Ever-Glory had approximately $8.8 million of cash and cash equivalents, compared to approximately $3.7 million as of December 31, 2010; working capital of approximately $34.7 million as of December 31, 2011; and outstanding bank loans of approximately $29.2 million as of December 31, 2011.

For the first quarter of 2012, Every-Glory forecast total net sales between $50 million and $60 million and net income between $1.8 million and $2.2 million. For full-year 2012, the company said it anticipates total net sales between $225 million and $260 million and net income between $9.5 million and $12 million.

“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,” Kang stated. “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.”

For more information visit www.everglorygroup.com

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