NANJING, China, July 14, 2012 /PRNewswire-Asia/ -- Ever-Glory International Group, Inc. (the "Company," "Ever-Glory") (NYSE Amex: EVK), a leading apparel supply chain manager and retailer in China, today provided an update regarding its financial results for the second quarter ended June 30, 2012.
The total net sales in the second quarter of 2012 are anticipated in the range of $46 to $49 million versus prior guidance of $50 to $60 million, primarily because of the weaker-than-expected sales in the Company's retail segment. Accordingly, the Company expects full-year 2012 sales in the range of $210 to 250 million versus prior guidance of $225 to $260 million.
The increase in sales from retail segment during the second quarter of 2012 compared to the same period last year is expected to be lower than the Company's previous projection. The sales from retail segment in the second quarter of 2012 are now expected to increase by approximately 98% compared to same period last year while the Company previously expected a minimum increase of 137%. The management expects sales from wholesale segment will decrease 14% compared to same period last year as previously projected.
The slowdown in increase of retail revenue is primarily due to the deteriorated domestic consumption in China. The eroding global economy in the first half year of 2012 affected China's economic environment. As a result, domestic consumption decreased significantly.Despite of the lower than expected total net sales, the Company expects net income in second quarter to be approximately in line with prior guidance. Because management believes the profit margin in second quarter of 2012 will slightly increase compared to same period last year.