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What’s Weighing on Yue Yuen as Shoe Manufacturing Giant Issues Profit Warning

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What’s Weighing on Yue Yuen as Shoe Manufacturing Giant Issues Profit Warning

Taiwanese shoe manufacturer Yue Yuen said it expects a profit decline of between 50 percent to 55 percent for the nine months ended Sept. 30, 2026.

Yue Yuen Industrial (Holdings) Ltd. on Monday gave a profit warning for the nine months ended Sept. 30, 2026.

The Taiwanese shoe manufacturer said it expects a profit decrease of between 50 percent to 55 percent following a preliminary review of unaudited consolidated financial statements of the Group. That compares with a profit of $278.7 million in the same year-ago period in 2025.

Yue Yuen attributed the profit decline to “multiple headwinds in the operating environment” of its manufacturing business. “Weak demand led to a contraction in sales scale, which coupled with rising costs and increasing pressure on product efficiency, weighed on the gross profit margin of the Group’s manufacturing business during the period,” the company said.

To be sure, new tariff policies and geopolitical tensions last year created uncertainties for Chinese manufacturers. The uncertainties began in April 2025 when U.S. President Donald Trump’s reciprocal tariff policy — which saw hikes across geographies, with significant impact on China and Vietnam —posed big problems for shoe firms. That led to reduced shipment volumes at Chinese manufacturers as many shoe firms shifted production elsewhere due to tariff fears.

Yue Yuen’s report on Monday said that “short lead-time orders increased, as brand customers also adopted a more cautious approach to order placement,” which resulted in increased volatility in order demand for the nine-month period. 8 percent in the Group’s manufacturing business revenue, versus year-ago levels.


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