Eclat and Makalot hold positive outlook toward 2H19 revenue/earnings

International apparel brands generally hold positive outlook toward the sales in 2H19 to FY20. In recent years, brand owners focus on the centralization of their suppliers. Taiwanese companies may be catalyzed with more  follow-up orders, accordingly. Institutional investors believed that the clothing giants Eclat (1476-TW) and Makalot (1477-TW) will be catalyzed the most.

Eclat is a garment foundry for sportswear brands such as Nike, Lululemon and UA. Catalyzed by the positive outlook and the robust growth momentum, the company expected that the orders from Nike will increase by 18% in 2H19, which is better compared to 1H19 of 10%. In addition, the company also expected that the growth rate of orders in FY20 will be further improved.

On the other hand, Eclat expected that the orders from Lululemon in FY19 is expected to grow by 20%. And, the orders next year is expected to grow by another 20%. Moreover, new clients are expected to contribute to the its 4Q19 revenue/earnings, catalyzing its 2H19 to FY20 revenue/earnings.

Makalot is the largest garment manufacturer for the fashion brand GU. Since this year, GU has performed very well. Currently, Makalot said that GU is accounted for 17% of its revenue. In addition, the sales of the American brand Champion is robust, the amount of orders may continue to increase.