Descente Ltd. reported sales in its year ended March 31 declined 3.1 percent, although its flagship Descente brand grew.
Sales reached ¥131.5 billion, down from ¥135.8 billion a year ago. Operating income declined 18.9 percent to ¥8.4 billion. Net earnings slumped 28.2 percent to ¥5.65 billion.
In its statement, Descente said economic stagnation in Korea and exchange translation effect have resulted in the year-over-year decline in sales and profit. Profits were particularly impacted by low consumption rate in Korea, up-front investment in China, the impact of FX translation due to the Yen’s appreciation. Sales grew on a currency-neutral basis in its major countries (Japan, Korea and China).
Among its brands, Descente’s revenues grew 4.6 percent in the year to ¥50 billion from ¥47.8 billion, Le Cog Sportive fell to ¥38.6 billion from ¥44.2 billion. Munsingwear’s sales were ¥14.2 billion, down from ¥15.7 billion. Arena’s sales were flat at ¥7 billion while Umbro’s sales eased to ¥6.7 billion from ¥7.0 billion.
Photo courtesy Descente
