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Makalot August Revenue Dips 5.1% YoY; Q3 Outlook Remains Cautiously Optimistic
Consumer Non-Durables · Apparel/Footwear · economic_daily · 2026-09-02
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Makalot Industrial reported August revenue of NT$3.55 billion, citing a high base effect from last year, while maintaining a positive outlook for Q3 shipments.
What Happened
Revenue Performance: Makalot Industrial announced August consolidated revenue of NT$3.55 billion, marking a high since September of last year, despite a 5.1% year-on-year decline. The company attributed the dip to a high base period last year caused by clients front-loading orders ahead of tariff changes.
Quarterly Outlook: Despite the August decline, Makalot expects Q3 shipment volumes to show single-digit growth compared to the same period last year. In NT dollar terms, the company aims for double-digit revenue growth, with analysts projecting a gross margin of over 24% for the quarter.
Client Demand: Demand from Japanese brands and sportswear clients remains robust and is expected to continue into next year. Additionally, U.S. retail channel orders are recovering, with inventory replenishment from major clients like Target providing a significant boost to the company's growth momentum.
Risks and Capacity: The company maintains a cautious outlook for Q4 due to geopolitical tensions in the Middle East and oil price volatility, which could impact client purchasing confidence. Consequently, Makalot is adopting a conservative approach to capacity expansion, focusing new production in Indonesia and Bangladesh.