Down jacket and garment maker Quang Viet Enterprise Co (廣越企業) on Thursday reported that revenue last year rose 22.42 percent year-on-year to a record high, driven mainly by orders from four clients — Patagonia Inc, Adidas AG, Nike Inc and The North Face.
Contributions from new customers such as Under Armour Inc (UA), New Balance Inc (NB) and Mammut Sports Group AG, as well as from Helly Hansen Group and Puma AG, also helped push revenue for the whole of last year to NT$16.26 billion (US$541.66 million), up from NT$13.28 billion in 2018, the firm said in a statement.
However, the company’s revenue last month fell 3.91 percent month-on-month and 4.79 percent year-on-year to NT$825.73 million due to low-season effects.
Quang Viet is positive about its business outlook for this year given its leading position in the world’s high-end down jacket market in terms of research and development, production quality and innovations, the statement said.
“Apart from the continued increase in the average selling price of products in 2020, Quang Viet is cautiously optimistic about further growth in annual sales and earnings this year,” Quang Viet president Charles Wu (吳朝筆) said in the statement.
“Global sportswear brands Adidas, Nike, UA, Puma and NB are to become major growth drivers for the company in 2020, while leading outdoor clothing brand The North Face would also help fuel growth momentum this year,” the statement said.
Quang Viet has headquarters in Taipei and operates factories in China, Vietnam, Romania and Jordan.
Its Chinese operations mainly focus on China’s domestic market and no US orders are produced there.
Its Vietnamese operations handle most US orders, which is why the US-China trade dispute has not affected it much.
Due to its increasing gross margin and decreasing operating expenses, the company’s profit growth is expected to be larger than its revenue growth this year, analysts said.
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