Technology

Notable News to Watch: Ever-Glory International Group (NASDAQ:EVK)

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Ever-Glory International Group (NASDAQ:EVK) spotted trading -21.43% off 52-week high price. On the other end, the stock has been noted 40.43% away from the low price over the last 52-weeks. The stock changed 0.00% to recent value of $3.3. The stock transacted 900 shares during most recent day however it has an average volume of 14.95K shares. The company has 14.8M of outstanding shares and 3.98M shares were floated in the market.

On Aug. 14, 2019, Ever-Glory International Group (NASDAQ:EVK) a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, disclosed its financial results for the second quarter ended June 30, 2019.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, During the second quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables.

During the second quarter of 2019, our retail brands continue to attract new customers and retain existing customers by focusing on design, quality and value, Mr. Kang continued. Following the remodeling or relocation of 39 stores during 2019, we operated a nationwide network of 1,235 stores as of June 30, 2019.

Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in light of weak micro-environment and enhancing our account receivables. Going forward, we’ll implement a stricter client evaluation system and remain diligent in our account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability. concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added,The second quarter results, are coupled with our ability to increase operating leverage. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business.

Second Quarter 2019 Financial Results

Total sales for the second quarter of 2019 were $77.3 million, a decrease of 12.7% from $88.5 million in the second quarter of 2018. This decrease was primarily driven by an19.4% decrease in our retail business and a 4.0% decrease in wholesale business.

Sales for the Company’s branded fashion apparel retail division decreased by 19.4% to $40.1 million for the second quarter of 2019, compared with $49.7 million for the second quarter of 2018. This decrease was primarily due to a decrease in the amounts of stores and same-store sales. The Company had 1,235 retail stores as of June 30, 2019, compared with 1,417 retail stores as of June 30, 2018.

Sales for the Company’s wholesale division decreased by 4.0% to $37.3 million for the second quarter of 2019, compared with $38.8 million for the second quarter of 2018. This decrease was primarily attributable to decreased sales in Mainland China, Hong Kong China, Japan, Germany, United Kingdom and other European markets partially offset for increased sales in the United States.

Total gross profit for the second quarter of 2019 decreased by 16.1% to $29.0 million, compared with $34.5 million for the second quarter of 2018. Total gross margin decreased to 37.5% from 39.0% for the second quarter of 2018. Its earnings per share (EPS) expected to touch remained 114.50% for this year. EVK has a gross margin of 32.80% and an operating margin of 3.20% while its profit margin remained 2.40% for the last 12 months.

According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 6.87% from the mean of 20 days, 1.93% from mean of 50 days SMA and performed -7.51% from mean of 200 days price. Company’s performance for the week was 0.00%, 25.00% for month and YTD performance remained -17.35%.

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