Eratat Lifestyle, the casual fashion footwear and apparel company based in Jinjiang, Fujian province, says it posted a 23.5% fall in net profit after tax to RMB27.1 million ($5.4 million) for the first quarter ending June 30 2010 (1QFY2010) versus RMB35.4 million for 1QFY2009. Revenue fell 8.7% to RMB237.2 million compared from RMB259.7 million.
For the 6 months ended June 30 (1HY2010), total revenue decreased by RMB8.8 million or 2.1% to RMB418.0 million.
Revenue from its Eratat brand apparel increased by RMB9.6 million or 6% to RMB168.5 million.
Sales of Third Party Brand footwear increased by RMB18.5 million or 162.3% to RMB29.9 million.
The revenue contribution by footwear and apparel was 59.7% and 40.3% respectively (1H 2009: 62.8% and 37.2% respectively).
As at the end Q1 2010, Eratat Lifestyle says there are 1400 retail locations of which 500 are specialty shops and the remaining are shop-in-shop or specialty counters, as compared to 1680 retail locations and 460 specialty shops respectively as at 31 March 2010.
Barring any unforeseen circumstances, and with the order book of RMB500 million on hand, Eratat Lifestyle is optimistic about the group’s financial performance in year 2010.
