Kwong Lung Enterprise (8916-TW), a global leader in functional outerwear manufacturing, reported consolidated revenue of NT$493 million for September 2026, down 30.1% year-over-year. For the third quarter, however, consolidated revenue reached NT$2.24 billion, up 3.4% year-over-year, marking a return to annual growth. Revenue for the first nine months totaled NT$5.96 billion, down 4.8% from the same period last year. Management noted that September performance was primarily affected by changes in customer shipment schedules, vessel departure timing and factory production arrangements, with part of the related revenue recognition shifting into October and November. On a quarterly basis, overall peak-season shipment momentum remained intact despite the monthly volatility.

By business segment, September apparel revenue was NT$209 million, down 52.0% year-over-year, while home textile revenue declined 5.5% to NT$175 million, with both segments affected in part by shipment and revenue recognition timing. Feather and down revenue increased 32.2% year-over-year to NT$107 million, supported by continued shipment demand from key customers.

For the third quarter as a whole, apparel revenue totaled NT$1.23 billion, down 14.3% year-over-year. In contrast, feather and down revenue increased 60.8% to NT$476 million, while home textile revenue rose 24.9% to NT$523 million. The strong recovery in these two segments helped return consolidated revenue to annual growth, reflecting improving customer inventory conditions following adjustments in the first half and a recovery in seasonal order demand.

In the core apparel business, Kwong Lung emphasized that the sharp year-over-year decline in September largely reflected shipment and revenue recognition timing rather than a comparable change in underlying demand. A portion of orders originally scheduled for September is expected to be recognized in October and November. With these shipments moving into the fourth quarter and existing customer demand continuing to progress, management expects apparel performance in 4Q26 to be stronger than typical seasonal patterns, resulting in a different quarterly shipment mix from prior years.

Looking ahead, the shifted apparel shipments are expected to provide support to fourth-quarter operations. Kwong Lung will continue to focus on customer and product-mix optimization, flexible production allocation across its regional manufacturing footprint and operating efficiency to improve the quality of earnings across its core businesses. Into 2027, the company expects new customer programs, deeper engagement with growing outdoor brands and continued expansion into sports and everyday functional apparel categories to build the foundation for the next phase of growth in its apparel business.