Ever-Glory International Group, (NASDAQ:EVK)

NANJING, China, March 30, 2020 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (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, 2019.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "During the fourth quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables."

"During the full year of 2019, our retail brands continue to attract new customers and retain existing customers by focusing on design, quality and value," Mr. Kang continued. "Following the remodeling or relocation of 117 stores during 2019, we operated a nationwide network of 1,101 stores as of December 31, 2019."

"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in light of weak micro-environment and enhancing our account receivables. Going forward, we'll implement a stricter client evaluation system and remain diligent in our account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability." concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "The fourth quarter results, are coupled with our ability to increase operating leverage. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business."

Full Year 2019 Financial Results 

Total sales for the full year of 2019 were $383.1 million, a 14.6% decrease from $448.5 million in the full year of 2018. This decrease was primarily due to a 10.7% decrease in wholesale sales and an 18.2% decrease in retail sales.

Wholesale sales from the Company's wholesale business decreased by 10.7% to $195.2 million for the full year of 2019, compared with $218.6 million for the full year of 2018. This decrease was primarily attributable to decreased sales in Mainland China, United Kingdom, Hong Kong China, Germany and Europe-Other partially offset by increased sales in Japan and United States.

Retail sales from the Company's branded fashion apparel retail division decreased by 18.2% to $187.9 million for the full year of 2019, compared with $229.9 million for the full year of 2018. This decrease was primarily due to a decrease in same store sales.

Total gross profit for the full year of 2019 decreased by 19.4% to $118.8 million, compared with $147.4 million for the full year of 2018. Total gross margin for the full year of 2019 decreased to 31.0% from 32.9% for the full year of 2018. 

Gross profit for wholesale business decreased by 4.6% to $39.9 million for the full year of 2019, compared with $41.8 million for the full year of 2018. Gross margin for the full year of 2019 increased to 20.4% compared with 19.1% for the full year of 2018.

Gross profit for retail business decreased by 25.2% to $78.9 million for the full year of 2019, compared with $105.6 million for the full year of 2018. Gross margin for the full year of 2019 decreased to 42.0% from 45.9% for the full year of 2018.

Selling expenses for the full year of 2019 decreased by 12.3% to $80.2 million, or 20.9% of total sales, compared with $91.4 million, or 20.4% of total sales for the full year of 2018. The decrease was attributable to lower retail sales.

General and administrative expenses for the full year of 2019 decreased by 11.8% to $35.1 million, or 9.2% of total sales, compared with $39.8 million, or 8.9% of total sales for the full year of 2018. The decrease in absolute amount was mainly attributable to the decline in number of stores.

Income from operations for the full year of 2019 decreased by 76.5% to $3.5 million compared with $15.0 million for the full year of 2018.

Net income attributable to the Company for the full year of 2019 decreased by 89.4% to $1.3 million compared with $12.0 million for the full year of 2018. Basic and diluted earnings per share were $0.09 and $0.81 for the full year of 2019 and 2018, respectively.

Balance Sheet

As of December 31, 2019, Ever-Glory had approximately $48.6 million of cash and cash equivalents, compared with approximately $47.0 million as of December 31, 2018. Ever-Glory had working capital of approximately $39.8 million as of December 31, 2019, and outstanding bank loans of approximately $29.9 million as of December 31, 2019.

Second Quarter 2019 Financial Results 

• Total sales for the second quarter of 2019 were $77.3 million, a decrease of 12.7% from $88.5 million in the second quarter of 2018.
• Basic and diluted earnings per share were $0.13 for the second quarter of 2019 compared with $0.19 for the second quarter of 2018.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "During the second quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables."

"During the second quarter of 2019, our retail brands continue to attract new customers and retain existing customers by focusing on design, quality and value," Mr. Kang continued. "Following the remodeling or relocation of 39 stores during 2019, we operated a nationwide network of 1,235 stores as of June 30, 2019."

"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in light of weak micro-environment and enhancing our account receivables. Going forward, we'll implement a stricter client evaluation system and remain diligent in our account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability." concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "The second quarter results, are coupled with our ability to increase operating leverage. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business."

First Quarter 2019 Financial Results

• Total sales for the first quarter of 2019 were $88.0 million, a decrease of 5.2% from $92.8 million in the first quarter of 2018. 
• Net income(loss) attributable to the Company for the first quarter of 2019 was ($0.5) million compared with $0.8 million for the first quarter of 2018. Basic and diluted earnings(loss) per share were ($0.04) for the first quarter of 2019 compared with basic and diluted earnings per share of $0.06 for the first quarter of 2018.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "During the first quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables. Notably, we achieved year-over-year improvement in gross profit of 13.0% for our wholesale business."

"During the first quarter of 2019, we remained our focus on driving retail business through store network optimization strategy, as well as inventory management strategy," Mr. Kang continued. "Following the remodeling or relocation of 7 stores during 2019, we operated a nationwide network of 1,315 stores as of December 31, 2019."

"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in the light of weak micro environment and enhancing our account receivables. Going forward, we'll implement a stricter client evaluation system and remain diligent in account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability." concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "The first quarter results, coupled with our ability to increase operating leverage, resulted in expanded wholesale operating income during this quarter. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business."

Ever-Glory International (NASDAQ:EVK) ($3.29; $44.8M market cap), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, announced Q3 2018 results:

• Total sales for the third quarter of 2018 were $125.5 million, an increase of 4.3% from $120.3 million in the third quarter of 2017.
• Non-GAAP EPS $0.21 vs $0.08 in the prior year.

Commentary from management:

"During the third quarter of 2018, we remained our focus on driving retail business through store network optimization strategy, as well as inventory management strategy," Mr. Kang continued. "Following the remodeling or relocation of 225 stores during the third quarter, we operated a nationwide network of 1,396 stores as of September 30, 2018."

"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in the light of weak micro environment and enhancing our account receivables. Going forward, we'll implement a stricter client evaluation system and remain diligent in account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability," concluded Mr. Kang.

We are currently long EVK for a swing trade, as we disclosed on October 18 on the heels of a Form 4 that was filed by the company’s CEO.

First Quarter 2018 Financial Results

• Total sales for the first quarter of 2018 were $92.8 million, an increase of 9.0% from $85.1 million in the first quarter of 2017. This increase was primarily driven by an 18.9% increase in our retail business, partially offset by a 10.8% decrease in wholesale business.
• Net income attributable to the Company for the first quarter of 2018 was $0.8 million compared with 1.0 million for the first quarter of 2017. Basic and diluted earnings per share were $0.06 for the first quarter of 2018 compared with basic and diluted earnings per share of $0.07 for the first quarter of 2017.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "We are pleased to start 2018 with solid first quarter results, highlighted by 18.9% year-over-year increase in retail sales as our strong execution on the overall strategy which focuses on operational improvements. Specifically, La go go achieved outstanding performance with innovative and distinctive designs that stand for exceptional styling, quality and value."

"Heading into 2018, we remained our focus on driving retail business through store network optimization strategy, as well as inventory management strategy," Mr. Kang continued. "Following the remodeling or relocation of 40 stores during the first quarter, we operated a nationwide network of 1,409 stores as of March 31, 2018."

"Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in the light of weak micro environment. Our wholesale gross margin continued to improve on a year-over-year basis despite decrease in sales. Going forward, we'll implement a stricter client evaluation system and remain diligent in account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability." concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "We're delighted to see that our operating efficiency continued to improve in the first quarter. Overall gross margin increased by 30 basis points, with wholesale gross margin increasing by 70 basis points, compared with the same period of last year. With strengthened fundamentals and improved operating leverage of our overall business, we are excited about the opportunities that lay before us and we look forward to updating you with our progress next quarter."

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.
•  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.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "We are very pleased to announce the 2017 full year results with a 10.2% year-over-year increase in retail sales and a 1.1% year-over-year increase in wholesale sales. Notably, we achieved full year net income attributable to the Company of $12.5 million, representing an 84.2% year-over-year increase from 2016. In addition, we closed out the fourth quarter with an 18.2% year-over-year growth of our total sales, capping a year of sequential quarterly growth. I'm encouraged by the performance achieved in 2017 as our teams executed well across all parts of the business.

"Our four retail brands continue to attract new customers and retain existing customers by focusing on design, quality and value," Mr. Kang continued. Our inventory management strategy continually improves the balance between inventory turnover and sales growth, and our diligent cost control measures further strengthen the profitability of our business. The results we've seen this year make me very confident and very optimistic in our retail business' future growth prospects."

"Looking at our wholesale business, while total revenue remained relatively flat for 2017 compared with 2016, wholesale gross margin continued to improve on a year-over-year basis. The overall market conditions in many of our key global markets remained challenging. However, we experienced encouraging sales results from Hong Kong, Germany and the United States in 2017. Although the overall consumption market remains weak, I firmly believe in our product development and supply chain management capabilities to drive the future growth of our wholesales business," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "Our relentless efforts have been paying off evidenced by solid 2017 full year results and furthermore, operating efficiency continued to improve in 2017, demonstrating our ability to control costs in the weak market environment. Overall gross margin increased by 180 basis points, with retail gross margin and wholesale gross margin increasing by 110 basis points and 140 basis points respectively, compared with 2016. Looking at 2018, we look forward to further strengthening the fundamentals and increasing operating leverage to support the long-term profitability of our business."

Third Quarter 2017 Financial Results

• Total sales for the third quarter of 2017 were $120.3 million, an increase of 9.4% from $109.9 million in the third quarter of 2016. This increase was primarily attributable to a 0.2% increase in sales in our wholesale business and a 24.9% increase in our retail business.
• Basic and diluted earnings per share were $0.22 for the third quarter of 2017 compared with basic and diluted earnings per share of $0.04 for the third quarter of 2016.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "Constantly building upon our growing brand recognition and leading supply chain management capabilities, we reported a solid third quarter with both revenue and net income delivering year-over-year growth. In particular, our retail revenue increased by 24.9% compared with the year-ago period as both our in-fashion collections with our upgraded store images and best-in-class customer service continue to receive high marks from our customers. We continued to optimize our store network during the quarter by strengthening our quick response system and better managing our inventory levels.  As of September 30, 2017, we managed a nationwide network of 1,363 stores and launched a new store design for Velwin in July.

"While our wholesale business in the third quarter remained flat compared with the year-ago period, we're pleased to achieve the stabilized results even as overall market conditions in many of our key global markets remained challenging in the quarter," continued Mr. Kang. "Looking ahead, we expect sales in European areas to remain stable while sales in Japan to remain weak. However, we continued our efforts in cost management and managed to improve our gross margin for wholesale business on a year-over-year basis.

"Overall, we are very pleased with our third quarter results. They support our conviction and the priorities we have set for ourselves, as well as the strategies we continue to follow to strengthen the foundations of our business. We believe these goals and objectives will enable us to capture the right opportunities when market conditions improve," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "The solid third quarter results, coupled with our ability to increase operating leverage, resulted in expanded overall gross margin and operating income during this quarter. While we continued to improve our wholesale gross margin, third quarter retail gross margin was impacted by higher production costs as we proactively cleared out-of-season inventory. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business."

Second Quarter 2017 Financial Results

• Total sales for the second quarter of 2017 were $79.8 million, a decrease of 1.1% from $80.7 million in the second quarter of 2016. This decrease was primarily driven by a 12.7% decrease in our wholesale business, partially offset by a 9.1% increase in retail business.
• Basic and diluted earnings per share were $0.18 for the second quarter of 2017 compared with basic and diluted earnings per share of $0.21 for the second quarter of 2016.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "During the second quarter, we maintained our focus on developing retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio. Notably, we achieved year-over-year improvement in gross margins for both of our retail and wholesale businesses, as well as a year-over-year revenue increase of 9.1% for our retail business.

"Following the remodeling or relocation of 86 stores in the second quarter, we managed a nationwide network of 1,362 stores as of June 30, 2017. The new store designs for our brands La go go, Sea to Sky and idole have received positive customer feedback and we are planning to launch a new store design for Velwin in the second half of this year. We are pleased to see our store network optimization and new store designs initiatives resulting in robust same store sales growth in the second quarter. While we enjoyed retail growth, we also made efforts to balance inventory turnover by clearing out-of-season products and shortening order response time. Our e-commerce initiative also brought in new branding and cross-selling opportunities as well as a new channel to clear inventory.

"Our wholesale business remained under pressure in the second quarter due to economic slowdowns in many of our key global markets. However, we still managed to improve our gross margin on a year-over-year basis. Looking ahead, we aim to further optimize our customer base with a goal of realizing margin expansion and improved efficiencies. Overall, we remain confident in both our retail and wholesale businesses. Through our established brand management capabilities and strong presence in the supply chain space, we are committed to driving our business towards long-term sustainability," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "We continued to improve our operating leverage during the second quarter, and our diligence is paying off. We are pleased to see margin expansion in the retail and wholesale business of 480 and 180 basis points, respectively, from the year-ago period. Our focus going forward is to continue to balance profitability by increasing operating efficiency while at the same time building a solid foundation for our overall business. With our steady and strategic steps, we are ready to capture the opportunities when the market conditions improve."

First Quarter 2017 Financial Results

• Total sales for the first quarter of 2017 were $85.1 million, a decrease of 7.2% from $ 91.7 million in the first quarter of 2016.
• Net income (loss) attributable to the Company for the first quarter of 2017 was $1.0 million compared with a net loss of $0.4 million for the first quarter of 2016. Basic and diluted earnings per share were $0.07 for the first quarter of 2017 compared with basic and diluted loss per share of $0.02 for the first quarter of 2016.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "In the first quarter, we continued to execute on the operational adjustments to our retail business in order to enhance efficiencies and increase profitability. Specifically, we accelerated our efforts to balance inventory turnover and sales while propelling our store network optimization by remodeling or relocating 27 stores during the first quarter with the rollout of our new store designs. As of March 31, 2017, we operated a nationwide network of 1,369 stores, and look forward to additional store remodels and relocations in the remaining of this year. In conjunction with our store-remodeling program, we have launched series of branding and promotional activities to synergize our online and offline resources and drive improved interaction between our online operations and offline sales."

"Although the first quarter is a seasonally slow quarter for our wholesale business, we are pleased to report notable gross margin improvement for the first quarter 2017, despite the significant topline pressure from seasonality and the slowdown of economies in our key global markets. Moving forward, we will continue to strengthen our original design manufacturing operations with seasoned expertise in extensive product development and one-stop supply chain management. We aim to further optimize our customer base with a goal of realizing margin expansion and elevated efficiency. Together with sourcing channels and manufacturers with high quality, reliability and cost-efficiency, we are committed to driving our wholesales business towards long-term sustainability," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "The challenging consumer market conditions in the past few quarters have not stopped our devotion to maintaining a solid and efficient operation through the implementation of margin enhancement and cost control measures. Our efforts paid off in the first quarter 2017, as we achieved the year-over-year and sequential gross margin improvement of 260 and 40 basis points, respectively, as well as achieving net income of $1.0 million compared with a net loss in the year-ago period. In addition to the gross margin improvement in both retail and wholesales businesses, our retail business with higher gross margin has gained a greater proportion of our total sales in the first quarter, which indicates better operation mix that sets the foundation for sustainable and profitable operation."

Fourth Quarter 2016 Financial Results

• Total sales for the fourth quarter of 2016 were $110.4 million, a decrease of 14.5% from $129.2 million in the fourth quarter of 2015.
• Net income attributable to the Company for the full year of 2016 decreased by 50.2% to $6.8 million compared with $13.6 million for the full year of 2015. Basic and diluted earnings per share were $0.46 and $0.92 for the full year of 2016 and 2015, respectively.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "In light of the challenging macro environment in 2016 that continued in the fourth quarter, we have been proactively making operational adjustments to maintain our competitive advantage in a tough market and remain focused on the execution of our strategies for both of our retail and wholesale business segments, with a goal to evolve our business towards long-term sustainability.

"For our retail business, we continued to drive our store network optimization efforts by adding a net total of 33 stores during the fourth quarter. As of December 31, 2016, we operated a nationwide network of 1,378 stores, and expect to operate over 1,450 stores at the end of 2017. With our approach and efforts to balance fast inventory turnover and sales in 2016, we look forward to growth improvement in 2017. In addition, we have completed the new store designs for our youth brand Sea To Sky and high-end brand idole, and we are excited for the sales opportunities the new designs can bring when launched later this year. In 2017, we will continue to focus on inventory and operation management and branding, while further fine-tuning our store network."

"For our wholesale business, although we have experienced continued pricing pressure due to lackluster consumer confidence, we are pleased to report gross margin improvement for the fourth quarter and full year of 2016. In 2017, we look forward to maintaining our sales trend in the United States, while further improving the growth in Europe and Japan. We believe our extensive product development and one-stop supply chain management expertise, as well as network of high quality, reliable and cost-efficient sourcing channels and manufacturers will continue to drive the long-term growth of our wholesales business," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "Despite the soft market conditions throughout the year 2016, we are pleased that our business remains solid and showed resilience to the slowdown of global economies. In 2016, we maintained the gross margin for wholesale business at the same level compared with the year-ago period while improving the gross margin for retail business by 110 basis points, mainly due to the decreased rent costs. As we diligently carry out our inventory management strategy, we aim to continually improve the balance between inventory turnover and sales growth in 2017. While we expect 2017 to remain challenging, we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business."

Third Quarter 2016 Financial Results

• Total sales for the third quarter of 2016 were $109.9 million, a decrease of 7.3% from $118.6 million in the third quarter of 2015. This decrease was primarily driven by a 3.4% decrease in our wholesale business and a 13.2% decrease in retail business.
• Basic and diluted earnings per share were $0.04 for the third quarter of 2016 compared with $0.19 for the third quarter of 2015.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "While our overall business continued to be impacted by the lackluster macroeconomic environment in the third quarter, the tough operating environment did not slow us from continuing to execute our strategic initiatives with a keen focus on building a long-term sustainable business. In addition, our two complementary segments, retail and wholesale, provide us formidable competitive advantages in the market with deep insight into local fashion buying behaviors and changing retail trends and valuable experience and resources across every aspect of supply chain management.

"For our retail business, we remain focused on store network optimization, inventory and operation management and branding. As of September 30, 2016, we operated a nationwide network of 1,345 stores by adding a net total of 70 stores during the third quarter and expect to have over 1,400 stores at the end of this year.

"The global macroeconomic headwinds and weak consumer confidence continued to impact our wholesale business in the third quarter, however, we believe our extensive product development and supply chain management expertise, as well as network of high quality, reliable and cost-efficient sourcing channels and manufacturers will benefit the long-term foundation of our wholesale business. In addition, despite the lower sales in Japan, the United Kingdom and Mainland China, we are pleased to record higher sales in Hong Kong, other European areas and the United States in the third quarter," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "During the soft market conditions of the third quarter, we are pleased that our business foundation remains solid. We have been diligently executing our strategic initiatives and have made important progress. In the third quarter, despite the decreased total sales, we maintained the gross margin for retail business at the same level compared with the year-ago period while improving the gross margin for wholesale business by 70 basis points, mainly due to our effective procurement system and lower cotton prices. While we expect the remainder of 2016 to remain challenging, we will continue implementing our margin enhancement and cost control measures to further strengthen the foundation of our business."

Second Quarter 2016 Financial Results

• Total sales for the second quarter of 2016 were $80.7 million, an increase of 6.5% from $75.7 million in the second quarter of 2015.
• Net income attributable to the Company for the second quarter of 2016 was $3.1 million compared with $3.6 million for the second quarter of 2015. Basic and diluted earnings per share were $0.21 for the second quarter of 2016 compared with $0.24 for the second quarter of 2015.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "We are pleased with our financial results in the second quarter with top line increasing by 6.5% year-over-year and bottom line returning to profitability. The strategic initiatives we have implemented in the last few months have contributed to these solid results."

"Despite soft year-over-year retail sales, the performance of this segment was within our expectation. In the second quarter, we continued to execute our key strategies to maintain stability in the retail business in the short term, while focusing on store network optimization, inventory and operation management and branding to drive profitable growth over the long run."

"Our second quarter wholesale sales grew by 26.9% year-over-year, with strong results recorded in the United States, other European markets (excluding Germany and the United Kingdom) and China. We believe this reflects our recovery efforts as we strive to strengthen product development and supply chain management, as well as optimize our customer base by focusing on high-quality mid-to-high end customers with good credit histories. Looking at the remainder of 2016, we expect the challenging market conditions to remain. We are committed to our strategic initiatives and laying a firm foundation for a sustainable and profitable business in the long term," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "Our solid financial performance reflects the prudent steps that we've taken to improve our cost structure, resulting in decreased operating expenses as percentage of total sales in the second quarter. Meanwhile, as part of our effort to reduce inventory levels for our retail business, we increased in-store discounts on out-of-season products during the second quarter, which led to higher production costs as percentage of retail sales and slightly impacted the gross margin for the retail segment. As we remain committed to maximizing operating efficiency and further reducing our inventory levels, we are confident in our long-term growth prospects."

First Quarter 2016 Financial Results

• Total sales for the first quarter of 2016 were $91.7 million, a decrease of 6.3% from $97.9 million in the first quarter of 2015. This decrease was primarily attributable to an 8.5% decrease in sales in our retail business and a 2.2% decrease in our wholesale business.
• Basic and diluted loss per share was $0.02 for the first quarter of 2016 compared with basic and diluted earnings per share of $0.16 for the first quarter of 2015.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, "Our first quarter results reflect the continued challenging retail environment in China. Despite soft domestic consumption and lower-than-expected retail sales in the first quarter, we unveiled a new store design for our first brand, La go go. With a stylish, simple layout and new product displays, we aim to provide a fresh shopping experience for customers while improving same-store sales. Moreover, our new brands Sea To Sky, Velwin and idole continue to be well received by our consumers."

"First quarter wholesale sales remained at a stable level compared with the same period of prior year, benefiting from our strong supply chain management and product development capabilities. While our outlook for the apparel industry this year remains conservative due to the weak retail environment, we are confident about our long-term strategy to build a profitable and sustainable business," concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, "As we advance our strategic initiatives to optimize the retail store network and tailor the management teams for each brand, our operating expenses increased during the first quarter. As a disciplined accounting measure, we also increased the provision on inventory of out-of-season products, which negatively impacted our bottom line. However, with a healthy balance sheet and strong cash position, we remain optimistic about the growth opportunities in our overall business. We believe our combined efforts will enhance our competitive position and enable growth and profitability as business conditions improve."

Fourth Quarter 2015 Financial Results

• Total sales for the fourth quarter of 2015 were $129.2 million, a 0.5% increase from $128.5 million in the fourth quarter of 2014. This increase was primarily due to a 4.4% increase in wholesale sales, partially offset by a 2.9% decrease in retail sales.
• Basic and diluted earnings per share were $0.32 and $0.22 for the fourth quarter of 2015 and 2014, respectively.

• Total sales for the quarter were $118.6 million, a decrease of 15.3% compared to $139.9 million in the third quarter of last year. This decrease was primarily due to a 21.1% decreased sales in our retail business and a 10.9% decreased sales in our wholesale business.
• Basic and diluted earnings per share were $0.19 and $0.35 for the three months ended September30, 2015 and 2014, respectively.

Second Quarter 2015 Financial Results

Total sales for the quarter were $75.7 million, a decrease of 11.6% compared to $85.7 million in the second quarter of last year.

Basic and diluted earnings per share were $0.24 and $0.37 for the three months ended June 30, 2015 and 2014, respectively.

First Quarter 2015 Financial Results

• Total sales for the quarter were $97.9 million, a decrease of 7.7% compared to $106.0 million in the first quarter of last year. This decrease was primarily attributable to a 2.9% decreased sales in retail business as well as a 15.6% decreased sales in wholesale business.
• Net income for the first quarter of 2015 and 2014 was $2.4 million, respectively. Basic and diluted earnings per share were $0.16 for the first quarter of 2015 and 2014, respectively.

NANJING, China, March 31, 2015 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NASDAQ Global Market: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider based in China, today reported its financial results for its fiscal year ended December 31, 2014.

Full Year 2014 Highlights

• Total net sales increased 25.0% YOY to $460.1 million
• Gross profit increased 29.2% YOY to $122.2 million
• Operating income increased 20.2% YOY to $21.8 million
• Net income increased 52.4% YOY to $16.4 million
• 2014 EPS of $1.11 compared to 2013 EPS of $0.73

Mr. Edward Yihua Kang, CEO of Ever-Glory commented, "I'm pleased to see our business maintain stable growth, while the macro environment remains challenging in 2014. In 2014, our retail business added two retail brands "Velwin" and "Sea To Sky", which also sell women's apparel but have different brand positioning than La go go. We believe the multi-brand strategy will improve our market share and expand our competitive position through the accurate positioning of each brand. In our wholesale business, we remain dedicated to service well-known brands and retail stores by providing a complete set of supply chain management. In 2015, we will continue to focus on high value-added solutions."

NANJING, China, December 20, 2014 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NYSE MKT: EVK), a leading apparel supply chain manager and retailer based in China, today announced that it will voluntarily transfer the listing of its common stock to The NASDAQ Global Market from NYSE MKT. Trading on The NASDAQ Global Market is expected to commence on December 31, 2014 under its current trading symbol "EVK". The Company's common stock will continue to trade on the NYSE MKT until the market close on December 30, 2014.

"We are pleased to announce our transfer to The NASDAQ Global Market. We believe our move to NASDAQ will improve the visibility of our stock, enhance trading liquidity in our shares, and provide us with greater exposure to institutional investors." Edward Yihua Kang, Chairman and Chief Executive Officer of the Company, commented. "While we are looking forward to our new relationship with NASDAQ, the NYSE was our listing home for many years, and they have served us well over that time."

"We are extremely pleased to welcome Ever-Glory International to Nasdaq," said Bob McCooey, Senior Vice President at Nasdaq. "Ever-Glory will be joining other great apparel companies on our market, and we look forward to our partnership with Ever-Glory in the years to come."

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On December 19, 2014, Ever-Glory International Group, Inc.. (the “Company”) notified the NYSE MKT of its intention to delist its common stock from the NYSE MKT and to list on The NASDAQ Global Market of The NASDAQ Stock Market LLC (“NASDAQ”). The Company expects its securities to cease trading on the NYSE MKT effective at the close of business on December 30, 2014 and to commence trading on NASDAQ on December 31, 2014 when the market opens. The common stock will continue to trade under the current trading symbol “EVK”.

Third Quarter 2014 Financial Results

• Total sales for the quarter were $139.9 million, an increase of 31.2% compared to $106.7 million in the third quarter of last year. This increase was primarily attributable to a 41% increased sales in retail business as well as a 24.7% increased sales in wholesale business.
• Basic and diluted earnings per share were $0.35 and $0.26 for the three months ended September 30, 2014 and 2013, respectively.

Business Outlook

For the fourth quarter of 2014, Every-Glory anticipates total net sales in the range of $90 to $140 million and net income in the range of $1.5 to $2.5 million. For full year 2014, Every-Glory anticipates total net sales in the range of $420 to $470 million and net income in the range of $11 to $17 million.

Second Quarter 2014 Financial Results

• Total sales for the quarter were $85.7 million, an increase of 44.9% compared to $59.1 million in the second quarter of last year. This increase was primarily attributable to a 53.6% increased sales in retail business as well as a 34.5% increased sales in wholesale business.
• Basic and diluted earnings per share were $0.37 and $0.18 for the three months ended June 30, 2014 and 2013, respectively.

Business Outlook

For the third quarter of 2014, Every-Glory anticipates total net sales in the range of $110 to $130 million and net income in the range of $3 to $4 million. For full year 2014, Every-Glory anticipates total net sales in the range of $420 to $470 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $160 to $180 million in anticipated wholesale revenue and $260 to $290 million in anticipated revenue from retail operations.

First Quarter 2014 Financial Results

• Total sales for the quarter were $106.0 million, an increase of 35.4% compared to $78.3 million in the first quarter of last year.
• For the first quarter, net income was $2.4 million, or $0.16 per diluted share, a decrease of 22.6% from $3.1 million, or $0.21 per diluted share in the first quarter of 2013. Net income in the first quarter of 2013 includes approximately $0.3 million, or $0.02 per diluted share, of non-cash income related to the change in fair value of a derivative liability. Excluding this non-cash item for the first quarter 2013, non-GAAP diluted earnings per share were $0.19 in the first quarter of 2013.

Business Outlook

For the second quarter of 2014, Every-Glory anticipates total net sales in the range of $65 to $75 million and net income in the range of $1.5 to $2.0 million. For full year 2014, Every-Glory anticipates total net sales in the range of $420 to $470 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $160 to $180 million in anticipated wholesale revenue and $260 to $290 million in anticipated revenue from retail operations.

NANJING, China, April 14, 2014 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NYSE MKT: EVK), a leading apparel supply chain manager and retailer based in China, today reported its financial results for its fiscal year ended December 31, 2013.

Total sales for the year ended December 31, 2013 were $368.1 million, an increase of 31.6% from the year ended December 31, 2012. This increase was primarily attributable to a 74.7% increased sales in retail business as well as a 4.3% increased sales in wholesale business.

In 2013, retail sales from LA GO GO, the Company's branded retail division, increased 74.7% to $189.7 million, compared to $108.6 million in 2012. This increase was primarily due to the increase in new stores opened and same store sales. Ever-Glory had 960 LA GO GO stores as of December 31, 2013, compared to 727 LA GO GO stores at December 31, 2012.

In 2013, wholesale sales generated from the Company's wholesale business increased 4.3% to $178.3 million, compared to $171.0 million in 2012. This increase was primarily attributable to increased sales in the PRC, the United Kingdom and Europe partially offset by decreased sales in Germany, Japan and the United States.

Total gross profit for the year 2013 was $94.6 million, or 25.7% of total sales, compared to $65.1 million, or 23.3% of total sales last year.

Selling expenses for the year 2013 increased 53.5% to $51.8 million compared to $33.7 million last year. As a percentage of sales, selling expenses increased 200 basis points to 14.1% compared to 12.1% last year. The increase was attributable to the increased number of stores, leading to increased numbers of retail employees and increased average salaries, as well as the increased store decoration and marketing expenses associated with the promotion of the LA GO GO brand.

General and administrative expenses for the year 2013 increased 51.9% to $24.7 million compared to $16.2 million last year. As a percentage of sales, general and administrative expenses increased 90 basis points to 6.7% compared to 5.8% last year. The increase was attributable to an increase in the number of wholesale and retail management personnel.

Income from operations increased by 20.3% to $18.1 million in 2013 from $15.1 million in 2012. As a percent of sales, income from operations accounted for 4.9% of our total sales in 2013, a decrease of 0.5% compared to 2012.

For 2013, net income was $10.7 million, or $0.73 per diluted share, a decrease of 16.1% from $12.8 million, or $0.87 per diluted share in 2012. Net income for 2013 includes approximately $0.3 million, or $0.02 per diluted share, of non-cash income related to the change in fair value of a derivative liability compared to approximately $0.1 million, or $0.01 per diluted share, of non-cash income related to the change in fair value of a derivative liability for 2012. Excluding this non-cash item for 2013 and 2012, non-GAAP diluted earnings per share were $0.71 in 2013 compared to $0.86 in 2012. See "About Non-GAAP Financial Measures" below.

Business Outlook

For the first quarter of 2014, Every-Glory anticipates total net sales in the range of $90 to $110 million and net income in the range of $2 to $3 million. For full year 2014, Every-Glory anticipates total net sales in the range of $420 to $470 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $160 to $180 million in anticipated wholesale revenue and $260 to $290 million in anticipated revenue from retail operations.

NANJING, China, Feb. 21, 2014 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NYSE MKT: EVK), a leading apparel supply chain manager and retailer based in China, today announced that, on February 14, 2014, it received a warning letter from NYSE Regulation, Inc. (the "Exchange") as a result of the Company's failure to (i) obtain shareholder approval for issuance of 75,485 shares of the Company's common stock as compensation to five non-employee directors (the "Compensation Shares") and (ii) timely file an application with the Exchange for listing of and obtain the Exchange's approval for the listing of these Compensation Shares. The Exchange has accordingly determined that the Company violated Section 301 and 711 of the Company Guide and issued the warning letter.

These Compensation Shares were issued to five independent directors during five years from 2008 through 2013, which account for less than one half of one percent of the total issued and outstanding shares.

To rectify the violations, the Company will adopt an equity compensation plan to cover these Compensation Shares as well as other equity compensation to be issued to directors, officers, employees and consultants and intends to obtain shareholder approval of the equity compensation plan at its annual meeting to be held in the first half of 2014. The Company will hold off issuance of any further equity compensation until shareholder approval of the plan or separate shareholder ratification for issuance of the Compensation Shares is obtained. The Company has entered into lockup agreements with the non-employee directors pursuant to which they agreed not sell, transfer or otherwise transfer the shares they received until a shareholder approval of the plan or separate shareholder ratification for issuance of the Compensation Shares is obtained. The Company will also file the required application for listing the Compensation Shares. In the event the plan is not approved by the shareholders and the Compensation Shares are not ratified by shareholders, the Company will rescind these Compensation Shares.

Third Quarter 2013 Financial Results

• Total sales for the quarter were $106.7 million, an increase of 54% compared to $69.3 million in the third quarter of last year.
• Net income was $3.9 million, or $0.26 per diluted share, an increase of 70.8% from $2.3 million, or $0.15 per diluted share in the third quarter of 2012.

Business Outlook

For the fourth quarter of 2013, Every-Glory anticipates total net sales in the range of $80 to $100 million and net income in the range of$2.5 to $3.5 million. For full year 2013, Every-Glory anticipates total net sales in the range of $300 to $360 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $150 to $180 million in anticipated wholesale revenue and$150 to $180 million in anticipated revenue from retail operations.

NANJING, China, Oct. 7, 2013 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NYSE MKT: EVK), a leading apparel supply chain manager and retailer based in China, today announced that, on October 1, 2013, it received a warning letter from the NYSE Regulation, Inc. as a result of the Company's failure to have its Audit Committee review and approve certain related party transactions prior to entering into the transactions. 

The Company's Audit Committee did not review or approve certain related party transactions including the Company's counter-guarantee to Jiangsu Ever-Glory International Enterprise Group Company, an entity majority owned and controlled by Mr. Yihua Kang, the Company's Chairman, CEO and President prior to entering into the transactions. Section 120 of Exchange's Company Guide (the "Company Guide") requires that related party transactions must be subject to appropriate review and oversight by the company's audit committee or a comparable body of the board of directors. The Exchange has accordingly determined that the Company violated Section 120 of the Company Guide and issued the warning letter.

The Audit Committee and management of the Company are in the process of putting in place a procedure to better implement the Company's related party transaction policy by timely identifying and submitting all related party transactions for the Audit Committee's review and prior approval.

• Total sales for the quarter were $59.1 million, an increase of 25.3% compared to $47.2 million in the second quarter of last year.
• Non-GAAP EPS was $0.18, compared to $0.15 for the same quarter 2012.

Business Outlook

For the third quarter of 2013, Every-Glory anticipates total net sales in the range of $70 to $80 million and net income in the range of$2 to $2.5 million. For full year 2013, Every-Glory anticipates total net sales in the range of $300 to $360 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $150 to $180 million in anticipated wholesale revenue and $150 to $180 million in anticipated revenue from retail operations.

First Quarter 2013 Results

• Total sales for the quarter were $78.3 million, an increase of 47.1% compared to $53.2 million in the first quarter of last year.
• Non-GAAP diluted earnings per share were $0.19 in the first quarter of 2013 compared to $0.13 in the first quarter of 2012.

Business Outlook

For the second quarter of 2013, Every-Glory anticipates total net sales in the range of $50 to $60 million and net income in the range of $1.5 to $2 million. For full year 2013, Every-Glory anticipates total net sales in the range of $300 to $360 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $150 to $180 million in anticipated wholesale revenue and $150 to $180 million in anticipated revenue from retail operations.

Item 4.02 Non-Reliance on Previously Issued Financial Statements

On April 13, 2013, management of Ever-Glory International Group, Inc. (the “Company”), after consultation with the Company’s independent registered public accounting firm, GHP Horwath, P.C (“GHP Horwath”) concluded, and the Audit Committee of the Board of Directors (the “Audit Committee”) approved the conclusion, that the following previously filed financial statements of the Company should not be relied upon:
 
(i) The Company’s unaudited financial statements for the three-month period ended March 31, 2012 contained in the Company’s Quarterly Report on Form 10-Q, originally filed with the Securities and Exchange Commission (“SEC”) on May 11, 2012;

(ii) The Company’s unaudited financial statements for the three-month period and six-month period ended June 30, 2012 contained in the Company’s Quarterly Report on Form 10-Q, originally filed with the SEC on August 10, 2012;

(iii) The Company’s unaudited financial statements for the three-month period and nine-month period ended September 30, 2012 contained in the Company’s Quarterly Report on Form 10-Q, originally filed with the SEC on October 22, 2012.

The Company’s review of the above mentioned filings revealed that the financial statements in such filings contained errors primarily as a result of the incorrect accounting treatment of certain related party transactions.
 
After discussion, review and analysis of the accounting and disclosures, the Company determined that the aforementioned financial statements should be adjusted to reclassify amounts provided in cash to a related party under a counter-guarantee agreement from current assets to a component of Stockholders’ equity. The counter-guarantee agreement was entered into in exchange for guarantees and collateral provided by the related party in connection with certain of the Company’s lines of credit. Amounts provided and to be reclassified are approximately as follows:

March 31, 2012 $4.3 Million
June 30, 2012 $12.4 Million
September 20, 2012 $25.6 Million

The reclassification does not affect previously reported amounts for revenues, income from operations, net income or earnings per share.

The Company will, as soon is practicable, make these adjustments by filing with the SEC amendments to the above reference reports which, in each case, will include restated consolidated financial statements and notes thereto, and other appropriate revisions to reflect the foregoing.

The Company’s management, Audit Committee and board of directors of the Company are assessing the effect of the pending restatements on its internal control over financial reporting and its disclosure controls and procedures and will not reach a final conclusion until completion of the restatement process.

NANJING, China, April 15, 2013 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NYSE MKT: EVK), a leading apparel supply chain manager and retailer based in China, today reported its financial results for its fiscal year endedDecember 31, 2012

4th Quarter EPS was $0 .40 vs $0.13 in prior year.

Total sales for the year ended December 31, 2012 were $279.6 million, an increase of 29.6% from the year ended December 31, 2011. This increase was primarily attributable to increased sales in our retail business as well as our wholesale business.

In 2012, retail sales from LA GO GO, the Company's branded retail division, increased 102.8% to $108.6 million, compared to $53.5 million in 2011. This increase was primarily due to the increase in new stores opened and same store sales. Ever-Glory had 727 LA GO GO stores as of December 31, 2012, compared to 467 LA GO GO stores at December 31, 2011. Currently, there are LA GO GO stores in more than 20 provinces in China.

In 2012, wholesale sales generated from the Company's wholesale business increased 5.4% to $171.0 million, compared to $162.2 million last year. This increase was primarily attributable to increased sales in the PRC, the United Kingdom and Japan partially offset for decreased sales in Germany and the United States..

Total gross profit for the year 2012 was $65.1 million, or 23.3% of total sales, compared to $44.5 million, or 20.6% of total sales last year.

Selling expenses for the year 2012 increased 85.8% to $33.7 million compared to $18.1 million last year. As a percentage of sales, selling expenses increased 370 basis points to 12.1% compared to 8.4% last year. The increase was attributable to the increased number of stores, leading to increased numbers of retail employees and increased average salaries, as well as the increased store decoration and marketing expenses associated with the promotion of the LA GO GO brand.

General and administrative expenses for the year 2012 increased 13.3% to $16.2 million compared to $14.3 million last year. As a percentage of sales, general and administrative expenses decreased 80 basis points to 5.8% compared to 6.6% last year. The decrease was attributable to the increase in sales.

Income from operations increased 25.1% to $15.1 million in 2012 compared to $12.1 million in 2011. As a percent of sales, income from operations accounted for 5.4% of our total sales in 2012, a decrease of 0.2% compared to 2011.

For 2012, net income was $12.8 million, or $0.87 per diluted share, an increase of 32.7% from $9.6 million, or $0.65 per diluted share in 2011. Net income for 2012 includes approximately $0.1 million, or $0.01 per diluted share, of non-cash income related to the change in fair value of a derivative liability compared to approximately $0.2 million, or $0.01 per diluted share, of non-cash income related to the change in fair value of a derivative liability for 2011. Excluding this non-cash item for 2012 and 2011, non-GAAP diluted earnings per share were $0.86 in 2012 compared to $0.64 in 2011. See "About Non-GAAP Financial Measures" below.

Business Outlook

For the first quarter of 2013, Every-Glory anticipates total net sales in the range of $68 to $85 million and net income in the range of$2.0 to $3.0 million. For full year 2013, Every-Glory anticipates total net sales in the range of $300 to $360 million and net income in the range of $11 to $17 million. The full year revenue forecast is comprised of $150 to $180 million in anticipated wholesale revenue and$150 to $180 million in anticipated revenue from retail operations.

Second Quarter 2012 Results

• Total sales for the quarter were $47.2 million, an increase of 10.0% compared to $42.9 million in the second quarter of last year.
• Excluding this non-cash item for the second quarter 2012 and 2011, non-GAAP diluted earnings per share were $0.15 in the second quarter of 2012 compared to $0.14 in the second quarter of 2011.

Business Outlook

For the third quarter of 2012, Every-Glory anticipates total net sales in the range of $50 to $60 million and net income in the range of $1.8 to $2.0 million. For full year 2012, Every-Glory anticipates total net sales in the range of $210 to $250 million and net income in the range of $9.5 to $12 million. The full year revenue forecast is comprised of $140 to $160 million in anticipated wholesale revenue and $70 to $90 million in anticipated revenue from retail operations.

NANJING, China, July 14, 2012 /PRNewswire-Asia/ -- Ever-Glory International Group, Inc. (the "Company," "Ever-Glory") (NYSE Amex: EVK), a leading apparel supply chain manager and retailer in China, today provided an update regarding its financial results for the second quarter ended June 30, 2012.

The total net sales in the second quarter of 2012 are anticipated in the range of $46 to $49 million versus prior guidance of $50 to $60 million, primarily because of the weaker-than-expected sales in the Company's retail segment. Accordingly, the Company expects full-year 2012 sales in the range of $210 to 250 million versus prior guidance of $225 to $260 million.

The increase in sales from retail segment during the second quarter of 2012 compared to the same period last year is expected to be lower than the Company's previous projection. The sales from retail segment in the second quarter of 2012 are now expected to increase by approximately 98% compared to same period last year while the Company previously expected a minimum increase of 137%. The management expects sales from wholesale segment will decrease 14% compared to same period last year as previously projected.

The slowdown in increase of retail revenue is primarily due to the deteriorated domestic consumption in China. The eroding global economy in the first half year of 2012 affected China's economic environment. As a result, domestic consumption decreased significantly.

Despite of the lower than expected total net sales, the Company expects net income in second quarter to be approximately in line with prior guidance. Because management believes the profit margin in second quarter of 2012 will slightly increase compared to same period last year.

Ever-Glory had 562 LA GO GO stores as of June 30, 2012, compared to 368 LA GO GO stores as of June 30, 2011.

Full Year 2011 Results

• Total net sales increased 60.9% year-over-year to $215.8 million 
• Gross profit increased 70.3% year-over-year to $44.5 million 
• Income from operations increased 82.2% year-over-year to $12.1 million 
• Net Income increased 43.8% year-over-year to $9.6 million 

"We're very pleased with the significant progress we made in 2011, as sales in both our retail and wholesale segments continued to increase," commented by Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "We are especially encouraged by achieving the objectives of LA GO GO store expansion. As of December 31, 2011, we had 467 LA GO GO stores in China, we surpassed our goal of opening an additional 80 to 100 new stores in 2011! We had 293 stores at the end of 2010."

"For 2012 , we see our basic strategies of retail business as unchanged, we will continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations," continued Mr. Kang. "We are confident that, continuing to pursue these measures, we can enhance same-store sales, expand LA GO GO's market penetration and increase its brand position in China."

Business Outlook

For the first quarter of 2012, Every-Glory anticipates total net sales of $50 to $60 million and net income of $1.8 to $2.2 million. For full year 2012, Every-Glory anticipates total net sales between $225 and $260 million and net income between $9.5 and $12 million. The full year revenue forecast is comprised of $140 to $160 million in expected wholesale revenue and $85 to $100 million in expected revenue from retail operations.

Third Quarter 2011 Results

• Net sales increased 68.1% to $53.7 million compared to $31.9 million in the third quarter of 2010.
• Excluding this non-cash items for the third quarter 2011 and 2010, non-GAAP diluted earnings per share were $0.18 in the third quarter of 2011 compared to $0.08 in the third quarter of 2010.

Second Quarter 2011 Results

• During the second quarter of 2011, net sales increased 85.8% to $42.9 million compared to $23.1 million in the second quarter of 2010. The increase was attributable to increased sales in Ever-Glory's retail business as well as its wholesale business.
• In the second quarter of 2011, gross profit was $10.4 million, an increase of 129.7% compared to the same period in 2010. Gross margin increased 4.6% to 24.1% in the second quarter of 2011, compared to 19.5% in the second quarter of 2010. The increase was mainly due to lower outsourced manufacturing costs.
• For the second quarter of 2011, GAAP net income attributable to the Company was $2.3 million, or $0.15 per diluted share, an increase of 182.1% from $0.8 million, or $0.05 per diluted share in the second quarter of 2010. GAAP net income attributable to the Company results for in the second quarter of 2011 include approximately $0.1 million, or $0.01 per diluted share, of non-cash income related to the change in fair value of a derivative liability.
• The change in fair value of a derivative liability in the second quarter of 2010 was not significant. Excluding these non-cash items for the second quarter 2011 and 2010, non-GAAP diluted earnings per share were $0.14 in the second quarter of 2011 compared to $0.06 in the second quarter of 2010.

"In the second quarter of 2011, sales increased significantly in both our wholesale and retail segments," commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "We are especially encouraged by our strong performance. The total number of LA GO GO stores in China increased from 293 at the end of 2010 to 368 stores as of June 30, 2011, we expect to open an additional 80-100 new stores in 2011 based on the 293 stores we had at the end of 2010.

"In 2011, we plan to continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations," continued Mr. Kang. "We are confident that, through these measures, we can enhance same-store sales, expand LA GO GO's market penetration and increase its brand influence in China."

Business Outlook

For the third quarter of 2011, the Company anticipates

• total net sales of $42.0 to $52.0 million 
• net income of $2.0 to $2.5 million.

For full year 2011, Ever-Glory anticipates

• total net sales between $180 and $215 million 
• net income between $7.3 and $9.0 million.

The full year revenue forecast is comprised of $120 to $150 million in expected wholesale revenue and $60 to $65 million in expected revenue from retail operations.

• During the first quarter of 2011, net sales increased 103.6% to $53.2 million compared to $26.1 million in the first quarter of 2010
• In the first quarter of 2011, gross profit was $9.1 million, an increase of 67.8% compared to the same period in 2010

"In the first quarter of 2011, sales increased significantly in both our wholesale and retail segments." commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "We are especially encouraged by our strong performance. The total number of LA GO GO stores in China increased from 293 at the end of 2010 to 305 stores as of March 31, 2011, we expect to open additional 80-100 new stores in 2011 based on the 293 stores we had at the end of 2010.

• non-GAAP diluted earnings per share were $0.17 in the first quarter of 2011 compared to $0.10 in the first quarter of 2010

For the second quarter of 2011, the Company anticipates total net sales of $32 to $42 million and net income of $1.3 to $1.8 million. For full year 2011, Ever-Glory anticipates total net sales between $180 and $215 million and net income between $7.3 and $9.0 million. The full year revenue forecast is comprised of $120 to $150 million in expected wholesale revenue and $60 to $65 million in expected revenue from retail operations.

We have a continuing program for the purpose of improving our manufacturing facilities and extending our LA GO GO stores. We anticipate that cash flows from operations and borrowings from banks will be used to pay for these capital commitments.

As part of our business strategy, we expect to continue to review opportunities to buy or invest in other businesses or technologies that we believe would enhance our manufacturing capabilities, or that may otherwise offer growth opportunities. If we buy or invest in other businesses in the future, this may require the use of cash, or we may incur debt or assume contingent liabilities.

2010 Year End Results:

• During the fiscal year ended December 31, 2010, net sales increased 49.3% to $134.1 million from $89.9 million in 2009

"In 2010, we were very pleased to see sales increase significantly in both our wholesale and retail segments," commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "On behalf of our board and management, I extend my warmest thanks to our customers for their trust in us, and to our staff for their tireless efforts and devotion to our customers."

• Total gross profit in 2010 increased 42.9% to $26.2 million from $18.3 million a year ago
• Non GAAP Net Income: $5,629,038 vs. $5,398,155
• non-GAAP diluted earnings per share were $0.38 in 2010 compared to $0.37 in 2009.

For the first quarter of 2011, Every-Glory anticipates total net sales of $45 to $55 million and net income of $1.8 to $2.2 million. For full year 2011, Every-Glory anticipates total net sales between $180 and $215 million and net income between $7.3 and $9.0 million. The full year revenue forecast is comprised of $120 to $150 million in expected wholesale revenue and $60 to $65 million in expected revenue from retail operations.

GeoTeam Note:

• Fourth quarter 2010 vs 2009 adjusted EPS was 0.12 vs. $0.02
• 2011 first quarter implied EPS guidance: $0.14
• 2011 full year implied EPS guidance: $0.55

• The Agreement allows the Company to borrow RMB40 million (approximately USD$5.8 million), which amount was funded in full on December 10, 2010 pending final documentation.
• The loan bears a fixed interest rate of 5.56% per annum.  The loan proceeds shall be used by the Company for working capital purposes.  The loan is secured by certain properties and land use rights of the Company.  The principal amount of the loan matures and is payable on December 10, 2011 and the interest is due and payable on the 20th of the last month of each quarter.

Third quarter of 2010

• During the third quarter of 2010, net sales increased 28.1% to $31.9 million compared to $24.9 million in the third quarter of 2009.

• Income from operations for the third quarter of 2010 decreased 20.6% to $1.6 million, or 4.9% of total sales, compared to $2.0 million, or 7.9% of total sales, in the third quarter of 2009. The decrease was mainly due to the increased selling, general and administrative expenses.

• For the third quarter of 2010, net income attributable to the Company was $1.83 million or $0.12 per diluted share, an increase of 1.8% from $1.79 million, or $0.13 per diluted share for the same period of 2009.

• Net income attributable to the Company for the third quarter of 2010 includes $621,600 of non-cash gains related to the change in fair value of derivative liabilities, compared to approximately $143,000 of non-cash expenses related to the change in fair value of derivative liabilities in the third quarter of 2009.

Business Outlook

For the fourth quarter of 2010, the Company anticipates

• total net sales of $40 to $60 million 
• net income of $1.9 to $2.9 million.

For full year 2010, the Company anticipates

• total net sales between $121 and $141 million 
• net income between $5.5 and $6.5 million.
• The full year revenue forecast is comprised of $95 to $110 million in expected wholesale revenue and $26 to $31 million in expected revenue from retail.

Ever-Glory International Group, Inc. announced the resignation of its Chief Financial Officer and Corporate Secretary Ms. Yan Guo, effective on September 2, 2010. Ms. Yan Guo's resignation was due to personal reasons and was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices.

The Company further announced the appointment of Mr. Jiansong Wang as the Chief Financial Officer and Corporate Secretary, effective from September 2, 2010.

 "The second quarter of 2010 proved to be a challenging quarter for us on wholesale business due to the increased labor and raw material prices," commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. "But we are also very encouraged by our retail business's performance. Sales generated from our retail business increased considerably in the second quarter of 2010, which demonstrates the strong momentum we have with our retail strategy. We opened 26 new LA GO GO stores in the second quarter of 2010 and now have a total of 210 LA GO GO stores in China as of June 30, 2010."

For the third quarter of 2010, the Company anticipates total net sales of $31 to $34 million and net income of $1.2 to $1.5 million. For full year 2010, the Company anticipates total net sales between $121 and $141 million and net income between $6 and $7 million. The full year revenue forecast is comprised of $95 to $110 million in expected wholesale revenue and $26 to $31 million in expected revenue from retail.