Descente Ltd. reported better-than-expected profits for its fiscal year, ended March 31, despite missing its top-line guidance.
The Japanese company said consolidated net sales reached ¥135.8 billion ($1.13 billion), up 10.3 percent from the prior fiscal year, but below the 12 percent the company forecasted in November. Operating income increased 13.6 percent to ¥11.1 billion ($92.4 million), or 7.6 percent of consolidated net sales. Net income increased 19.9 percent to ¥7.87 billion ($65.5 million). Descente had called for operating income of ¥11 billion and net income of ¥7.60 billion in its November forecast.
Descente derives most its income from Asia, where it designs, sources and distributes a variety of athletic and outdoor performance apparel under such licensed brands as Avia, Babolat, Marmot, Skins, Ryka and Umbro as well as its own Descente label. The Descente brand is best known in the United States and Europe for its luxury ski wear, but the company raised its profile in the West last summer by acquiring 80 percent of Innov-8, a rapidly growing, U.K.-based trail running brand that has made big gains penetrating U.S. specialty run and outdoor accounts.
Descente said it expected operating and net income to fall 29.2 and 35.5 percent in the first half of the current fiscal year, but rebound in the back half to end up 0.2 and down 4.7 respectively for the year as the yen’s appreciation against the dollar slows.
