As in the morning, another round of large movers began the evening. For some people, the surprise is that no news or catalysts have been reported as Ever Glory Intl Group. (EVK) shares surged 78.57% to $3.75 in the after-market.
However, on November 12, 2020, the Company posted its Q3 earnings. EVK’s gross sales were $79.9 million, a 29.5 percent drop from $113 .3 million in the third quarter of 2019. This downturn’s key cause was a 44.9% reduction in our wholesale enterprise, partly offset by a 10.3% increase in the retail business.
Sales for the Company’s branded fashion clothing distribution division rose by 10.3 percent to $34.8 million, relative to $31.6 million for the same quarter of 2019. This growth was largely attributed to a spike in e-commerce revenues. As of September 30, 2020, the Company had 923 retail stores compared with 1,157 retail stores as of September 30, 2019.
Revenue for the Company’s wholesale division declined by 44.9 percent to $45 .1 million, compared to $81 .7 million for the third quarter of 2019. This decline was largely due to a decrease in revenue in Mainland China, Hong Kong, Germany, Europe, Japan, the United States, and the United Kingdom.
Net operating profit fell by 2.8 percent to $23 .7 million for the third quarter of 2020, compared to $24 .4 million for the third quarter of 2019. In the third quarter of 2019, the total gross margin increased to 29.6% from 21.5%.
