Taiwan’s leading shoemaker, Pou Chen Corporation, today announced a notable increase in its first-quarter net profits despite a slight decline in revenue. The company’s consolidated revenue for the quarter was NT$63.289 billion, down 1.7% year-on-year, primarily due to fluctuating customer traffic in its sports goods retail segment. However, net profit after tax impressively rose to NT$4.653 billion, marking a 369.3% increase from the previous year and the second highest for the same period on record.
The company attributed the strong profit performance to both a recovery in its core footwear manufacturing operations and significant gains from external investments. The footwear segment, which constitutes 62.3% of Pou Chen’s total revenue, saw a 3.4% year-on-year increase, aided by an increase in shipped units and the appreciation of the US dollar. This comes after the industry’s inventory adjustments and leveraging a low base effect from the previous year.
Despite solid online sales, the sporting goods retail business, accounting for 37.3% of the revenue, experienced a 9% decline. This was largely due to weaker physical store traffic amidst a complex consumer environment and a high comparison base from last year when easing pandemic restrictions had boosted consumer spending.
Operating net profit for the quarter was NT$3.79 billion, up 86.8% year-on-year. Additionally, Pou Chen recognized substantial non-industry income from investments, particularly a NT$2.403 billion contribution from Nanshan Life Insurance, culminating in a total non-industry net income of NT$4.109 billion —an increase of 393% from the previous year.
This financial performance underscores Pou Chen’s strategic resilience, balancing core business activities with lucrative investment ventures to navigate market challenges effectively. As the company continues to adjust its product mix and enhance online and offline sales channels, it remains poised for sustained growth in the evolving global footwear market.
