FINANCIAL PERFORMANCE SUMMARY (H1 2026)
- Revenue increased to US$113.2 million (up 23.8% YoY), driven by the successful acquisition of Active Apparel Group Pty Ltd and Active Apparel Group (America) LLC (“AAG”) on January 2, 2026, which has been effectively integrated into the Group’s operations.
- Net profit rose to US$5.4 million, reflecting a 1.8% YoY increase, despite one-time costs associated with the integration of AAG.
STRATEGIC INITIATIVES
– Advertisement –
- Introduced a proprietary Product Lifecycle Management (“PLM”) system along with an in-house AI engine, representing our transformation into a tech-oriented apparel platform and improving operational efficiency.
RETURN TO SHAREHOLDERS
- Interim dividend maintained at HK3.0 cents per share, reflecting confidence in cash flow generation.
HONG KONG SAR – Media OutReach Newswire – 13 July 2026 – Lever Style Corporation (HKEX: 1346, “Lever Style”), a global leader in apparel production platforms, reported its financial results for the six months ending June 30, 2026.
In the first half of 2026, Lever Style returned to a growth trajectory in revenue. Following a defensive approach in 2025 aimed at managing credit risk, the Group achieved total revenue of US$113.2 million, marking a 23.8% rise compared to the same period last year. “This growth is attributed to the successful integration of the AAG business, laying a strong foundation for our future growth,” stated William Tan, CEO of Lever Style.
Towards Long-Term Value Through Integration
“While we witnessed substantial revenue growth, our net profit increased to US$5.4 million, a 1.8% rise from the first half of 2025. This pressure on profitability is due to one-time integration costs, including temporary staff redundancies as we refined workflows, systems, and teams. We consider these costs to be necessary investments for securing the long-term profitability of the acquired business,” Mr. Tan remarked.
With the integration nearly finalized, the group’s cost structure is now more efficient, and we anticipate the benefits of heightened operational leverage to be realized soon.
– Advertisement –
Innovative Technology & In-House AI Solutions
The group’s platform-based strategy is progressing, shifting its operational capabilities from a traditional apparel supplier to a tech-driven enterprise. During this review period, Lever Style effectively developed and implemented its proprietary PLM system among other initiatives. These internal systems are designed to enhance workflow transparency, accelerate time-to-market, and reduce waste throughout the group’s agile supply chain.
Utilizing its expanding internal R&D capabilities, the group has also customized AI solutions to cater to its specific operational requirements. These proprietary tools boost daily productivity for merchandisers and improve factory coordination, consolidating Lever Style’s long-term competitive advantage.
Market Outlook: Resilience of Premium Segments Amid a K-Shaped Economy
“The U.S. market, our primary focus, has shown unexpected resilience in the first half of 2026. Yet, a ‘K-shaped’ economic divide is evident: a struggling middle market with tight retail liquidity and price-sensitive consumers versus a premium segment of high-income consumers whose discretionary spending remains stable, supporting demand for luxury products and services,” noted Stanley Szeto, Executive Chairman of Lever Style.
Lever Style is largely insulated from mass-market fluctuations due to its focus on upscale designers and premium fashion labels. The alignment of the group’s brand portfolio with the more resilient premium sector positions it favorably to navigate the current economic landscape.
Anticipating Future Growth & Financial Synergies
As we look forward to the second half of 2026 and into 2027, the group’s strategic plan emphasizes three key operational and financial priorities:
- Contributions from AAG to the Bottom Line: With major integration challenges resolved, the AAG activewear business is poised to start contributing to net profits in H2 2026, with margins expected to improve steadily to align with Lever Style’s established business by 2027.
- Enhancing Operating Leverage: As increased volumes flow through the upgraded digital platform, Lever Style aims to realize synergies from operating leverage across its vendor network, thus improving management of fixed costs.
- Exploring M&A Opportunities: Through the integration of the AAG business, Lever Style has demonstrated the scalability of its platform. The group remains active in evaluating a pipeline of additional value-generating acquisitions to expand its product offerings and geographical presence.
“The Group has successfully completed major integration phases, upgraded its technology infrastructure, and remains aligned with the more resilient segments of consumer demand. The Board is confident in our fundamental business model and our capability to deliver long-term value for shareholders,” concluded Mr. Szeto.
For more information, please visit: here
Hashtag: #LeverStyle
https://www.leverstyle.com/en/home/
https://www.linkedin.com/company/lever-style-inc/
https://www.facebook.com/leverstyleofficial
https://www.instagram.com/leverstyle/
https://www.youtube.com/channel/UC2xFoI4FpTh5SOU6O63nNUQ
The issuer holds sole responsibility for the content of this announcement.
Lever Style Corporation
Listed on the Hong Kong Stock Exchange, Lever Style (HKEX 1346) serves as a premier apparel production platform for high-end contemporary and designer brands such as Alexander Wang, Theory, Todd Snyder, and Aimé Leon Dore; as well as active and performance brands like Arc’teryx, Columbia Sportswear, Helly Hansen, Spanx, Skims, and J.Lindeberg; and digitally native brands including Mizzen+Main and Bonobos.
Our supply chain solutions encompass fashion design, prototype creation, raw material sourcing, production, quality assurance, and logistical operations. Our innovative, modularized, multi-country platform facilitates high-mix, low-volume orders while reducing excess inventory and stockouts. We draw on decades of technical expertise from collaborations with some of the world’s most discerning brands. We oversee production for 175 brands across a network of over 150 factories in eight countries: Vietnam, China, Indonesia, Bangladesh, Cambodia, Sri Lanka, India, and Thailand. A certified B Corp, Lever Style is committed to ESG leadership in the apparel sector.
SEE TODAY’S TOP HEADLINES ACROSS LEADING PUBLICATIONS
Powered by WPeMatico
– Advertisement –
