Descente reported earnings declined 1.4 percent in the fiscal third quarter ended December 31 as sales slid 3.2 percent. However, the Japan-based sporting goods manufacturer still posted record profits in the nine months, driven by strong sales in China.
Third-quarter results were attained by subtracting six-month results from nine-month results.
Sales in the quarter reached ¥28.5 billion ($190 mm), down from ¥28.9 billion a year ago. Net profit totaled ¥3 billion ($20 mm), down from ¥3.1 billion. Ordinary income improved 60.0 percent to ¥5.6 billion ($38 mm) from ¥3.5 billion.
In the nine months, sales declined 8.1 percent to ¥84.3 billion from ¥91.7 billion. Ordinary profit reached ¥16.8 billion against ¥12.6 billion, a gain of 33.3 percent. Net profit rose 31.2 percent to ¥12.2 billion from ¥9.3 billion.
In its statements regarding nine-month results, Descente said, “In Japan, the directly managed store business of ‘Descente’ remained strong. However, overall sales declined due to a focus on premiumization. In South Korea, sales decreased mainly due to negative foreign exchange effects (depreciation of KRW).”
Descente noted that it achieved record profits over the nine months for the fourth consecutive year, mainly due to an increase in equity in earnings of affiliates, driven by Descente’s growth in China. Descente operates in China through a joint venture with Anta Sports (60 percent stake) and Itochu (10 percent stake), holding exclusive rights to use the Descente trademark and operate stores in Mainland China, Hong Kong, and Macao.
Image courtesy Descente
