Apparel Designer VLOV Posts 27% Sales Growth For the Second Quarter
VLOV Inc. (OTC: VLOV), a China-based designer of men`s apparel, announced it recorded adjusted profits, which excludes a non-cash gain associated with warrants, of US$2.3 million on sales of US$17.9 million.
Adjusted profits remained unchanged from the same period in the prior year, while sales increased 27%.
Diluted adjusted profits per share was US$0.13 for the period,
down 8% from the second quarter of 2009. GAAP net income increased 93%
to US$4.4 million from US$2.3 million for the second quarter of 2009.
Increased marketing efforts in Liaoning and Shandong, China was
primarily responsible for the company’s sales growth for the quarter.
New sales from Sichuan, China resulting from expansion of its
distribution channel also contributed to sales growth.
"We are executing on our strategy to upscale our brand image
amongst our target demographic by working with our distributors to move
towards operating stand alone stores and store-in-stores and away from
counters and concessions which lessen the value of our brand. Our
distributors are presently operating 519 points of sale and plan to open
between 30 and 40 high
-end stand alone store locations by the end of 2010,”said Qingqing Wu, the CEO of VLOV.
VLOV`s net current assets totalled $26.4 million, or $1.57 per
share, at the end of the second quarter. As of August 13, 2010, the
company had a cash balance of $9.5 million.
VLOV designs and markets its own brand apparel targeted
at middle-class Chinese men. VLOV products are sold through 519 points
of sale across northern, central and southern China.
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