Earnings

Eye Catching Stock: Ever-Glory International Group (NASDAQ:EVK)

March 30, 2019

Ever-Glory International Group (NASDAQ:EVK) stock price moved ahead 0.70% from the mean of 20 days, -2.52% from 50 and separated 0.85% from 200 days average price. EVK stock scored of 4.47% and valued price at $3.75. There were 8713 shares transacted in last trading period as compared to its an average volume of 2.56K shares over last three months period. Ever-Glory International Group a China based Company, belongs to Consumer Goods sector and Textile – Apparel Clothing industry. 

Ever-Glory International Group (NASDAQ:EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, reported its financial results today for the fourth quarter ended December 31, 2018.

Full Year 2018 Financial Results

Total sales for the full year of 2018 were $448.5 million, a 7.9% increase from $415.6 million in the full year of 2017. This increase was primarily due to a 14.9% increase in wholesale sales and a 2.0% increase in retail sales.

Wholesale sales from the Company’s wholesale business increased by 14.9% to $218.6 million for the full year of 2018, compared with $190.2 million for the full year of 2017. This increase was primarily due to increased sales in Japan, Mainland China, United Kingdom and United States partially offset by decreased sales in Hong Kong China, Germany and Europe-Other.

Retail sales from the Company’s branded fashion apparel retail division increased by 2.0% to $229.9 million for the full year of 2018, compared with $225.3 million for the full year of 2017. This increase was primarily due to an increase in same store sales.

Total gross profit for the full year of 2018 increased by 8.6% to $147.4 million, compared with $135.7 million for the full year of 2017. Total gross margin for the full year of 2018 increased to 32.9% from 32.7% for the full year of 2017.

Gross profit for wholesale business increased by 15.7% to $41.8 million for the full year of 2018, compared with $36.1 million for the full year of 2017. Gross margin for the full year of 2018 increased to 19.1% compared with 19.0% for the full year of 2017.

Gross profit for retail business increased by 6.0% to $105.6 million for the full year of 2018, compared with $99.6 million for the full year of 2017. Gross margin for the full year of 2018 increased to 45.9% from 44.2% for the full year of 2017.

Selling expenses for the full year of 2018 increased by 6.4% to $91.4 million, or 20.4% of total sales, compared with $85.9 million, or 20.7% of total sales for the full year of 2017. The increase was attributable to higher retail sales.

General and administrative expenses for the full year of 2018 increased by 13.6% to $39.8 million, or 8.9% of total sales, compared with $35.1 million, or 8.4% of total sales for the full year of 2017. The increase was mainly due to increased average salaries.

Income from operations for the full year of 2018 increased by 1.8% to $15.0 million compared with $14.7 million for the full year of 2017.

Net income attributable to the Company for the full year of 2018 decreased by 3.6% to $12.0 million compared with $12.5 million for the full year of 2017. Basic and diluted earnings per share were $0.81 and $0.84 for the full year of 2018 and 2017, respectively.

Balance Sheet

As of December 31, 2018, Ever-Glory had approximately $47.0 million of cash and cash equivalents, compared with approximately $62.9 million as of December 31, 2017. Ever-Glory had working capital of approximately $80.1 million as of December 31, 2018, and outstanding bank loans of approximately $29.5 million as of December 31, 2018.

 The stock has changed 56.25% in one year period and YTD Performance clocked at -6.08%. Shares of the company returned 0.00% during the last five trading days and it returned -1.32% in past 30 trading days. It changed -6.02% over recent three months. Its price volatility for a month is at 5.27% and for a week, volatility remained at 4.87%. Its beta factor stands at 0.85. Company’s price to sales ratio for last 12 months was 0.13 while its price to book ratio for the most recent quarter was 0.56. Its Market Cap valued at $55.5M.

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