Sporting goods distribution and retail group Yue Yuen Industrial Holdings has reported its financial results for the first three quarters of 2023, when revenue declined by 14.1% to US$5.99 billion, reports ILM.

The company attributed this result to a weak performance in its manufacturing business, low global demand and the industry-wide inventory digestion cycle.

Revenue for Yue Yuen’s footwear manufacturing business totalled US$3.5 billion, falling by 20.4% year-on-year. Footwear shipment volumes declined by 24.5% in the year so far to 160.9 million pairs, while the average selling price was up by 5.3% to US$21.71 per pair.

Total revenue for its manufacturing business (including footwear, soles, components and others) dropped by 20.9% to US$3.79 billion.

The company’s retail subsidiary Pou Sheng had revenue growth of 0.7% in the period to US$2.19 billion, with growth of 7.3% in RMB terms, supported by recovery of sales and foot traffic in Mainland China.

For the nine months of 2023 so far, the group’s gross profit fell by 15% year-on-year to US$1.4 billion, while gross profit for its manufacturing business alone was down by 21.6% to US$683.9 million.

Looking forward, Yue Yuen is optimistic for its manufacturing business and expects a gradual recovery trend in the industry, though notes that order visibility is cloudy, and the global footwear industry is expected to remain volatile in the short term.