Mainboard-listed Eratat Lifestyle, the China-based casual fashion footwear and apparel, today says net profit surged by 108.0% to RMB44.1 million ($8.5 million) for its second quarter (2Q2010) ended on 30 September 2010 and climbed 25.8% to RMB71.2 million in the half year ended on 30 September 2010 (1H2010).

Group revenue for 2Q2010 increased by 20.3% to RMB275.2 million mainly due to the increase in sales contribution by higher margin apparel, as well as increase in ex-factory average selling prices (ASP), following the repositioning of Eratat as a mass appeal and casual lifestyle wear brand.

The sales contribution in 1H2010 by footwear and apparel was 53.8% and 46.2% respectively as compared to 61.6% and 38.4% respectively in 1H2009.

The ASP of Eratat branded footwear continues to rise to RMB78 per pair in 2Q2010, matching that in the same season last year, while its gross margin improved from 23.7% to 24.1% in 2Q2010.

The ASP of Eratat branded apparel also increased by more than 30% to RMB113 per piece in 2Q 2010 from RMB84 per piece in 2Q2009. Gross profit margin for apparel improved from 34.8% to 39.1% in 2Q2010.

Gross profit jumped by 33.1% to RMB88.5 million, while overall gross profit margin improved from 29.1% to 32.2% in 2Q2010.

The group says it continues to grow the apparel sales contribution so as to provide wider apparel product range, which is part of the group’s business strategy to focus on growing its Eratat brand equity.