Taiwanese shoe manufacturer Yue Yuen Industrial (Holdings) Ltd. said on Tuesday that first quarter revenues fell, while shoe shipments were also down.
Yue Yuen is a manufacturer of athletic/outdoor and casual shoes. For the first quarter ended March 31, it said total revenue was down 2.2 percent to $1.99 billion versus year-ago revenue of $2.03 billion.
By business operation, athletic/outdoor shoe manufacturing revenue was down 6 percent to $971.7 million, with casual shoes and sport sandals production revenue falling 4.7 percent to $196.2 million. The manufacture of soles and other shoe components posted a 1.5 percent decline in revenue to $87.5 million. The company’s retail arm Pou Sheng reported a 4.1 percent revenue gain in the quarter to $730.0 million. Pou Sheng’s sales in the Greater China region includes shoes, apparel and commissions from concession sales as well as other income.
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Yue Yuen also said that the volume of shoes shipped during the quarter fell by 8.1 percent to 56.9 million pairs. The average selling price rose 2.4 percent to $20.52 per pair. That compares with shoe shipment volume down 1.2 percent to 252.2 million pairs in 2025 due to more cautious ordering policies by brands.
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The gross profit from the manufacturing arm fell by 20.7 percent to $186.3 million, while the gross profit margin was down 2.9 percentage points to 14.8 percent. “The decrease was mainly attributed to volatile short-term order demand, as well as intensified production scheduling caused by seasonal misalignments arising from the overlap of the Lunar New Year and Ramadan in the first quarter of 2026,” the company said. “These factors resulted in short-term production inefficiency within the manufacturing business which, coupled with higher labor costs, drove up manufacturing unit costs.”
Profits fell by 53.6 percent to $35.2 million, which included one-time items, versus $75.8 million a year ago.
“Amid mounting global economic headwinds, the [company] will continue to solidify its role as a strategic supplier and strengthen its multi‑location, high‑end footwear development capabilities, while deepening its long‑standing partnerships with leading international brands to capitalize on emerging opportunities and secure a higher-quality order mix,” Yue Yuen said.
Looking ahead, Yue Yuen said it will continue to closely monitor developments in the global economic and political environment, as well as the potential impact of regional conflicts on both delivery timelines and stability of raw material supplies. The company said that it has begun earlier raw material procurement talks and inventory planning to ensure supply stability, and that it is also strengthening its cost control measures. At the same time, it will continue to advance the ramp-up of its manufacturing facility in Central Java, Indonesia, while progressing with construction work for its new factory in India.