BRIEF: Yue Yuen profit tumbles by half in first quarter

Shoe manufacturer Yue Yuen Industrial (Holdings) Ltd. (0551.HK) warned on Tuesday that its profit fell by half or more in this year’s first quarter, citing the effects of global tariff wars, rising labor costs and production bottlenecks.

The company said it expects to report that its first-quarter profit fell between 50% and 55% from the $75.8 million it reported in the first quarter of 2025. It blamed the decline on “an increasingly complex and dynamic global economic landscape, the continued escalation of geopolitical tensions and seasonal misalignments, all of which have introduced greater uncertainties into the operating environment.”

It said those factors caused its manufacturing revenue to fall 5.5% in the first quarter, as its customers became more cautious in their ordering. It added that its average selling price rose slightly year-on-year during the quarter due to changes in its product mix.

Yue Yuen shares fell on Wednesday after the announcement, and were down around 11% at HK$15.07 in afternoon trading. The stock is up 42% over the last 52 weeks.

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