Descente, owned by Japanese trading house Itochu Corp, achieved record profits for the fourth consecutive year, mainly due to robust growth in China.
The Japanese-based sporting goods company owns Descente and also distributes the Le Coq Sportif, Arena, Munsingwear and Umbro under license.
Earnings reached ¥15.1 billion ($96 mm) in the fiscal year ended March 31, up 16.2 percent from ¥13.0 billion a year prior. Sales fell 6.8 percent to ¥119.3 billion ($757 bn) from ¥128.0 billion a year ago, with declines in South Korea and Japan offsetting China’s gains.
In China, sales jumped 28.8 percent to ¥199.3 billion from ¥154.7 billion a year ago. Descente noted that China “continued to grow strongly,” after sales in the region vaulted 43.0 percent in 2024.
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.
Sales in South Korea slid 4.3 percent to ¥68.2 billion, mainly due to the negative impact of foreign exchange rate fluctuations and despite a “strong performance” from the Descente brand.
Japan’s revenues fell 4.9 percent to ¥40.4 million. Descente said its owned stores and the MoveSport athleisure line “performed well. However, overall revenue declined due to the shift in its pricing and channel strategies amid a “focus on premiumization.”
In the fourth quarter, earnings fell 21.6 percent to ¥2.9 billion, down from ¥3.7 billion a year ago. Sales slipped 3.6 percent to ¥35 billion from ¥36.3 billion.
Looking ahead, Descente expects sales for the current fiscal year to rise 0.6 percent to ¥120.0 billion. Ordinary income is projected to move up 8.8 percent to ¥26.0 billion from ¥23.9 billion. Net income is expected to climb 39.1 percent to ¥21.0 billion from ¥15.1 billion.
Among priorities by region, Descente in Japan plans to expand its DTC business under its Descente brand and expand the “wholesale business by thoroughly strengthening product competitiveness.” In South Korea, Descente plans to drive further growth for the Descente, Umbro and Arena brands while expanding its footwear business. In China, growth is expected to come from further scaling the Descente brand. The company is also rebranding Le Coq Sportif and Munsingwear in South Korea and China.
