Descente Ltd, a Japanese sportswear and accessories company, closed the first quarter (Q1) of the 30th of the same period of the previous fiscal year. Operating profit for the three month period increased to ¥ 1.0 billion (Q1 FY20: loss of 3.1 billion).
The company’s financial outlook for the full year predicts sales growth of 6.3 percent to 103.0 billion yen, while operating income is expected to rise to 4.2 billion yen.
In the first quarter, Japan segment revenue increased significantly to 9.7 billion (5.0 billion), driven by an increase in net sales and a decrease in product returns and discounts. Sales in the South Korean market, on the other hand, rose to 11.7 billion (9.3 billion), mainly driven by sales of the Descente brand and outerwear. In addition, sales from China increased slightly to 0.9 billion (0.8 billion).
Sportswear and related products categorically contributed 63.6 percent to total sales of 14.3 billion yen as the impact of COVID-19 diminished and sports opportunities increased in the first quarter. Sales of golf clothing accounted for 6.6 billion, 29.5 percent of net sales, while sales of outdoor clothing amounted to 1.6 billion.
According to the Japanese sportswear company, sales of its five main brands improved during the reporting period: Descente to 9.5 billion yen (6.6 billion yen); Le coq sportif at 6.1 billion yen (4.4 billion USD); Munsingwear at 2.3 billion (1.3 billion); Arena at 1.5 billion (0.6 billion); and Umbro 1.8 billion (1.1 billion).
Fibre2Fashion newsroom (JL)
Descente, a Japanese sportswear and accessories company, did in the first quarter (Q1) of the same period last year. Operating profit for the three month period increased to ¥ 1.0 billion (Q1 FY20: loss of 3.1 billion).