Ever-Glory International Group Inc. (NASDAQ:EVK) Stock Jumps Without Any News: Is it Sustainable?
Ever-Glory International Group Inc. (NASDAQ:EVK) jumped 8.5% on no news. The branded fashion apparel retailer recently released its Q1 2021 financial results for the three months ending March 31, 2021.
CEO Yihua Kan said that the company maintained its focus on growing its retail business through the store network optimization initiative and multi-brand strategy during the quarter. At the same time, the company worked in enhancing wholesale operations by upgrading its customer portfolio and improving account receivables.
Kan said that after the relocation and remodeling of 50-100 stores during the quarter, the company runs a network of 921 stores nationwide at the end of the quarter. In addition, the company is focusing on reducing credit risk and improving margins in the wake of an uninspiring micro-environment on the wholesale business. The company reported total sales of $70.8 million in Q1 2021, a 21.4% YoY increase, primarily due to a 32% growth in retail sales and a 4.2% increase in wholesale sales. So, in the coming months, EVK is a stock to watch.
Market Reaction:
On Wednesday, EVK stock surged 8.50% at $2.82 with more than 2.49 million shares, compared to its average volume of 707K shares. The stock had moved within a range of $2.6000 – 3.0900 after opening the trade at $2.64. Over the past 52-week, the stock has been trading within a range of $0.8000 – 8.3000.
