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Weak sales dampen Erarat Lifestyle's Q3 profit

2014-1-23
Amidst a subdued domestic economic scenario, Chinese apparel company Eratat Lifestyle Limited witnessed a dip in sales revenue and profitability in the third quarter of 2013.
 
The company, which is engaged in the design and distribution of lifestyle fashion apparel and fashion footwear, reported a 5 per cent dip in revenue at RMB 314 million in Q3 FY13 from RMB 330 million the same period a year ago amidst muted apparel sales and a decline in footwear sales.
 
Similarly, in the nine-months ended December 31, 2013 sales revenue dipped 1.2 per cent to RMB 738 million from RMB 746 million in the year ago period despite an increase in apparel sales.
 
Sluggish consumer spending amidst inflationary pressures and a slowdown in the Chinese economy has weakened appetite for discretionary spending, weighing on the Chinese apparels industry.
 
Revenue from apparels climbed by a muted 0.7 per cent to RMB 241.7 million in the three months ended December 31, 2013 from the same period a year ago. 
 
Sales from the apparel business, which has now become the prime focus of Eratat Lifestyle Limited, accounted for 77 per cent of the company’s total revenue in Q3 FY 2013, up from 72.6 per cent in the same period a year ago.
 
The company posted a 31.3 per cent dip in profit after tax at RMB 38.8 million in Q3 FY 2013 from RMB 56.4 million in the same period a year ago as revenue declined.
 
The company, which was formerly known as China Eratat Sports Fashion Limited distributes lifestyle fashion apparel under its well-established proprietary brand, “ERATAT”.
Source:Fibre2fashion
 
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