Eclat Textile Co (儒鴻) yesterday said it has an order visibility of about six months, with the next quarter relatively clear, despite rising uncertainty over conflicts in the Middle East.
Geopolitical tensions have triggered fluctuations in raw material prices, a situation the company continues to monitor closely, Eclat president Hung Jui-ting (洪瑞廷) told an earnings conference in Taipei.
The company has yet to see any risk related to material shortages, as it has already secured most of its raw materials in advance and employs a multisource supply chain strategy, the Chinese-language Liberty Times (the Taipei Times’ sister paper) quoted Hung as saying.
Photo: Fang Wei-chieh, Taipei Times
Instead, as many textile factories in the Middle East have suspended operations, some customers are reviewing their inventory and looking for alternative suppliers, which could benefit Eclat, he said.
Overall operations in the first half of this year are still progressing as expected and shipments are projected to remain stable, Eclat said.
In addition, demand for large-scale orders related to the FIFA World Cup remains stable, while shipment demand driven by reduced tariffs in Southeast Asia is emerging, the company said.
Eclat — which counts global brands such as Nike Inc, Gap Inc, Target Corp, Lululemon Athletica Inc and Under Armour Inc among its top customers — reported that revenue last year rose 3.15 percent year-on-year to NT$37.99 billion (US$1.19 billion).
Net profit last year fell 16.95 percent to NT$5.51 billion from NT$6.64 billion in 2024, and earnings per share dropped to NT$20.1 from NT$24.2, the New Taipei City-based garment and fabrics supplier said.
Combined revenue in the first two months of this year totaled NT$6.02 billion, up 0.97 percent year-on-year.
Eclat aims to maintain monthly revenue above NT$3 billion this year and is “cautiously optimistic” about achieving full-year revenue of NT$39.74 billion, a record set in 2022, Hung said.
Benefiting from the introduction of new products, the average selling price (ASP) of Eclat’s products is expected to increase this year, with fabrics’ ASP expected to undergo low single-digit percentage growth and garments’ ASP likely to see a high single-digit percentage to low double-digit percentage increase, he said.
With revenue and profit projected to return to positive growth this year, the company guided its gross margin to between 28 and 32 percent in the year, compared with 28.64 percent last year.
However, through the introduction of new products and the improvement in product mix, the company expects an upward adjustment in gross margin later this year, it said.
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