Eclat Textile Co (儒鴻) yesterday projected that sales this quarter would be flat or slightly higher than the previous quarter, as brand clients are expected to resume orders after reaching healthier inventory levels.
The company’s optimistic outlook is also supported by some orders being deferred from last quarter to this quarter due to shipping schedule problems, Eclat spokesperson Tiffany Lin (林芬如) told the state-run Central News Agency.
As brand clients reported stronger-than-expected sales over the year-end holiday shopping season in the US, the company is cautiously optimistic about this year’s business prospects, with order visibility of about six months from now, Lin said.
Photo: Fang Wei-chieh, Taipei Times
Eclat, which counts global brands such as Nike Inc, Gap Inc, Target Corp, Lululemon Athletica Inc and Under Armour Inc among its top customers, yesterday reported that revenue for last month rose 14.12 percent from November to NT$3.3 billion (US$104.5 million).
However, the figure fell 3.57 percent from a year earlier, the company said in a regulatory filing.
Lin said last month’s sales performance would have been even better, as about NT$450 million worth of orders were deferred to this year due to shipping schedule issues.
Fourth-quarter revenue was NT$9.26 billion, down 3.83 percent from the previous quarter and 3.2 percent from a year earlier.
The figure was lower than market expectations of NT$9.69 billion, according to data compiled by Yuanta Securities Investment and Consulting Co (元大投顧), which had projected NT$9.68 billion.
Eclat’s full-year revenue totaled NT$37.99 billion for last year, representing an annual increase of 3.15 percent. Yuanta had expected NT$38.41 billion.
Yuanta expects Eclat’s operating momentum this year to be sustained by stable orders, with revenue projected to increase 4.03 percent year-on-year to NT$39.52 billion, it said in a note.
“For 2026, Eclat will continue its development projects with brand clients, with likely three new clients — including one US brand, one retail channel, and one brand operating across European and Asian markets,” Yuanta said.
“Meanwhile, expectations for rising prices will push consumers to purchase in advance, likely helping brands to digest inventory. We also expect the FIFA World Cup to boost restocking orders and demand this year, helping drive a sales recovery for Eclat,” it added.
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