Descente Ltd. posted a 4.7% decrease in revenues for the fiscal second quarter. Total consolidated worldwide revenues were ¥21.68 billion ($231 mm) for the fiscal quarter ended September 30, compared to ¥22.75 billion ($226 mm) in the year-ago quarter.
Gross margins contracted about 180 basis points to 46.7% of sales in the fiscal second quarter. SG&A expenses, which declined 7.4% for the quarter, decreased 110 basis points as a percent of sales to 47.2% of sales in the period.
The company posted net income of ¥1.23 billion ($13 mm) in the fiscal second quarter versus net income of ¥1.02 billion ($10 mm) the year-ago quarter, a 20.7% increase.
The company is maintaining its forecast of net profit of ¥2.0 billion for the year versus year-ago net income of ¥2.2 billion. Revenues are expected to rise slightly (+1.2%) to ¥78 billion.
Inventories at quarter-end were up 9.4% to ¥12.08 billion ($134 mm).
