Annual net income at the globe’s largest producer of footwear fell 2.5% to $483.5 million from $495.8 million for the 12 months ended Sep. 30. Total revenues grew 22% to $7,045,373,000 from $5,788,208,000. But annual gross margins were off 230 b.p. to 22.1% from 24.4% in FY10. Direct labor costs were up 38.5% for the year as material costs rose nearly 25% and production overhead increased almost 27% for the full year.

Digging deeper into the result, YY’s manufacturing business grew 22% in FY11 to more than $5.6 billion. But it should be noted that manufacturing ops outside mainland China grew ... Log in to view full article.