Descente reported sales for the fiscal first quarter ended June 30 increased 11.3 percent to ¥16.47 billion ($202 mm) from ¥14.76 billion ($161 mm) in the year-ago period. Gross margins slipped 40 basis points to 47.6 percent of sales for the quarter, compared to 48.0 percent of sales in Q1 last year. The company focused on expenses during the quarter, slashing SG&A by 280 basis points to 48.6 percent of sales.
The company narrowed its operating loss to ¥167 million ($2.0 mm) from a loss of ¥597 million ($6.5 mm) in fiscal Q1 last year.
Descente swung to a small profit for the period due in part to a ¥95 million ($1.2 mm) benefit in the income tax line. Net income came in at ¥14 million ($2.8 mm) in fiscal Q1 versus a loss of ¥257 million ($2.8 mm) in the year-ago period.