Investors News Alert – Ever-Glory International Group, Inc. (NASDAQ:EVK)

Ever-Glory International Group, Inc. (NASDAQ:EVK) traded with change of 10.45% to $3.7 with the total traded volume of 30281 shares in recent session versus to an average volume of 7.88K. The stock was up in the 5 days activity 8.06%. The one month performance of stock was high 17.54%. EVK shares are above 42.55% for the quarter and driving a 52.27% rally over the course of the past year and is now up 42.55% since this point in 2018.  Right now EVK beta is 2.35. The average volatility for the week and month was at 7.94% 4.62% respectively.

Ever-Glory International Group, Inc. (NASDAQ:EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, today announced its financial results for the fourth quarter and full year ended December 31, 2017.

Fourth Quarter 2017 Financial Results

Total sales for the fourth quarter of 2017 were $130.4 million, an increase of 18.2% from $110.4 million in the fourth quarter of 2016. This increase was primarily driven by a 22.3% increase in our wholesale business and a 14.9% increase in retail business.

Sales for the Company’s branded fashion apparel retail division increased by 14.9% to $70.5 million for the fourth quarter of 2017, compared with $61.4 million for the fourth quarter of 2016. This increase was primarily due to an increase in same-store sales. The Company had 1,400 retail stores as of December 31, 2017, compared with 1,378 retail stores as of December 31, 2016.

Sales for the Company’s wholesale division increased by 22.3% to $60.0 million for the fourth quarter of 2017, compared with $49.0 million for the fourth quarter of 2016. This increase was primarily attributable to an increase in sales in Hong Kong China, the United States and Mainland China partially offset by a decrease in sales in Japan, the United Kingdom, Europe-other and Germany.

Total gross profit for the fourth quarter of 2017 increased by 18.8% to $43.3 million, compared with $36.5 million for the fourth quarter of 2016. Total gross margin increased to 33.2% from 33.1% for the fourth quarter of 2016.

Gross profit for the retail business increased by 14.9% to $29.6 million for the fourth quarter of 2017, compared with $25.8 million for the fourth quarter of 2016. Gross margin remained flat at 42.0% for the fourth quarter of 2017 and 2016.

Gross profit for the wholesale business increased by 28.2% to $13.7 million for the fourth quarter of 2017, compared with $10.7 million for the fourth quarter of 2016. Gross margin increased to 22.9% from 21.8% for the fourth quarter of 2016.

Selling expenses for the fourth quarter of 2017 increased by 17.4% to $25.7 million, or 19.7% of total sales, compared with $21.9 million, or 19.9% of total sales for the fourth quarter of 2016. This increase was mainly attributable to higher retail sales.

General and administrative expenses for the fourth quarter of 2017 increased by 2.4% to $10.2 million, or 7.8% of total sales, compared with $9.9 million, or 9.0% of total sales for the fourth quarter of 2016.

Income from operations for the fourth quarter of 2017 increased by 60.6% to $7.4 million compared with $4.7 million for the fourth quarter of 2016.

Net income attributable to the Company for the fourth quarter of 2017 was $5.5 million compared with $3.4 million for the fourth quarter of 2016. Basic and diluted earnings per share were $0.37 for the fourth quarter of 2017 compared with $0.23 for the fourth quarter of 2016.

Full Year 2017 Financial Results

Total sales for the full year of 2017 were $415.6 million, a 5.8% increase from $392.7 million in the full year of 2016. This increase was primarily due to a 10.2% increase in retail sales and a 1.1% increase in wholesale sales.

Retail sales from the Company’s branded fashion apparel retail division increased by 10.2% to $225.3 million for the full year of 2017, compared with $204.4 million for the full year of 2016. This increase was primarily due to an increase in same store sales.

Wholesale sales from the Company’s wholesale business increased by 1.1% to $190.2 million for the full year of 2017, compared with $188.2 million for the full year of 2016. This increase was primarily due to increased sales in Hong Kong China, Germany, the United States and Mainland China, partially offset by decreased sales in Japan, Europe-other and the United Kingdom.

Total gross profit for the full year of 2017 increased by 12.0% to $135.7 million, compared with $121.2 million for the full year of 2016. Total gross margin for the full year of 2017 increased to 32.7% from 30.9% for the full year of 2016.

Gross profit for retail business increased by 13.1% to $99.6 million for the full year of 2017, compared with $88.1 million for the full year of 2016. Gross margin for the full year of 2017 increased to 44.2% from 43.1% for the full year of 2016.

Gross profit for wholesale business increased by 9.2% to $36.1 million for the full year of 2017, compared with $33.1 million for the full year of 2016. Gross margin for the full year of 2017 increased to 19.0% compared with 17.6% for the full year of 2016.

Selling expenses for the full year of 2017 increased by 11.0% to $85.9 million, or 20.7% of total sales, compared with $77.4 million, or 19.7% of total sales for the full year of 2016. The increase was attributable to higher retail sales.

General and administrative expenses for the full year of 2017 increased by 3.0% to $35.1 million, or 8.4% of total sales, compared with $34.0 million, or 8.7% of total sales for the full year of 2016. The increase was mainly due to increased average salaries.

Income from operations for the full year of 2017 increased by 51.7% to $14.7 million compared with $9.7 million for the full year of 2016.

Net income attributable to the Company for the full year of 2017 increased by 84.2% to $12.5 million compared with $6.8 million for the full year of 2016. Basic and diluted earnings per share were $0.84 and $0.46 for the full year of 2017 and 2016, respectively.

Balance Sheet

As of December 31, 2017, Ever-Glory had approximately $62.9 million of cash and cash equivalents, compared with approximately $45.3 million as of December 31, 2016. Ever-Glory had working capital of approximately $72.7 million as of December 31, 2017, and outstanding bank loans of approximately $37.7 million as of December 31, 2017.

Shares of Ever-Glory International Group, Inc. have been recently spotted trading 7.25% off of the 52-week high price. On the other end, company shares have been noted 88.69% away from the low price over the last 52-weeks. 52 week range of the stock remained $ 1.96 – 3.45. Switching over to some distances from popular moving averages, we see that the stock has been recorded 30.65% away from the 50 day moving average and 45.30% away from the 200 day moving average. Moving closer, we can see that shares have been trading 19.65% off of the 20-day moving average.

 

Peter Hamm

Peter Hamm is an author, journalist and CEO of the website. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. He has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. He has always been interested in the stock market and how it behaves. As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. Peter observations and experience give him the insight to stock market patterns and the investor behaviors that create them. He reports about Earnings news category. Address: 3876 Levy Court, EASTON, Pennsylvania Email: Peter@newscontrol.info

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