VLOV Inc., a designer and marketer of VLOV-brand fashion forward apparel for men in the People’s Republic of China, today announced financial results for the second quarter and six months ended June 30, 2011.
Net sales for the second quarter of 2011 were $20,588, a 14.7 percent increase from $17,946 for the same period in 2010. Net sales for the six months ended June 30, 2011, were $41,761, a 15.9 percent increase from $36,013 for the same period of 2010.
Gross margin as a percentage of total net sales increased to 44.9 percent and 44.4 percent for the three and six months ended June 30, 2011, respectively, compared to 38.1 percent and 38.2 percent in the same periods in 2010, respectively.
VLOV reported a 15.8 percent decrease in net income to $3, 762 for the second quarter of 2011 compared to net income of $4,467 for the comparable quarter of 2010. For the six-month period of 2011, net income increased by 48.5 percent to $8,233 compared to $5,544 for the six months ended June 30, 2010.
As of June 30, 2011, VLOV had cash and cash equivalents of $15.7 million, total current assets of $42.7 million and current liabilities of $6.2 million.
The company noted its acquisition of several store locations from its distributor, which boosted financial performance in the second quarter, and is expected to continue to drive growth.
“We are pleased to report another quarter of solid financial performance, which reflects strong consumer response to our designs and increasing excitement around our brand. As part of our strategy to further evolve the VLOV brand to appeal to upscale consumers, we made the decision to acquire 13 VLOV store locations from our Fujian distributor,” Qingqing Wu, chairman and CEO of VLOV stated in the press release. “We believe direct ownership of these stores — located near our corporate and design headquarters — will allow us to showcase VLOV’s design aesthetic and brand image, while at the same time further educating the company’s distributors about our brand DNA.”
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