Makalot Expects Return to Growth in Q2 as Impact of US-Iran Tensions Eases

(CNA, Taipei, May 26) Apparel giant Makalot held its shareholder meeting today. CEO Chou Hsin-peng stated that facing successive Trump tariffs and US-Iran tensions, retail brand clients have been conservative in restocking. However, the impact of these two variables is now easing, and he remains optimistic about growth momentum in the second half of the year. Given the high base in the first quarter of last year, Makalot expects its operations to return to a year-on-year growth trajectory starting from the second quarter of this year.

Chairman Chou Li-ping noted that the succession team has been working hard and performing beyond expectations. While short-term factors like the US-Iran conflict have made things difficult for clients, Makalot will adjust its short-term strategies to meet client needs while continuing to move toward long-term growth.

Regarding shareholder concerns about the recent decline in Makalot's stock price, Chou Hsin-peng believes this is not unique to Makalot but is a situation shared by the entire apparel industry, as well as traditional sectors like footwear and bicycles. This trend is seen not only in Taiwan but also in South Korea. With AI tech stocks in the spotlight, capital has shifted toward them, creating a crowding-out effect.

Chou Hsin-peng emphasized that for Makalot, the focus remains on its own operations and achieving growth targets this year.

Makalot's revenue last year was NT$34.428 billion, down 3% year-on-year. Net profit attributable to the parent company was NT$3.614 billion, down 12.1%, ending seven consecutive years of profit growth. Earnings per share (EPS) stood at NT$14.65. Today's shareholder meeting approved an annual dividend of NT$15, with a payout ratio of 102%. (Edited by Yang Kai-hsiang) 1150526