Descente Limited Q1 FY20 sales down to ¥15.5 bn

17 Sep '20

2 min read

Pic: Descente Limited

In the first quarter (Q1) FY20, Descente Ltd, a Japanese sports clothing and accessories company, posted 47.2 per cent sales decline to ¥15.5 billion (Japanese Yen) compared to the sales of ¥29.4 billion in the same period previous fiscal. Operating loss for Q1 ended on June 30, 2020, was ¥3.1 billion compared to operating income of ¥451 million in Q1 FY19.

Gross profit for the period fell to ¥8.4 billion (¥17.2 billion). Selling, general and administrative expenses were down to ¥11.8 billion (¥16.9 billion).

Company’s sales in Japan during Q1 FY20 were ¥5.0 billion. In the month of April, 57 directly managed stores, stores in shopping malls, and wholesale stores such as department stores were temporarily closed in Japan. While in Hong Kong the sales were ¥9.3 billion. Under the Umbro brand, Descente is working to improve profitability by opening stores while closing unprofitable stores of other brands. In China, the sales were ¥875 million.

By items category, sales of athletic wear and related products during the first quarter amounted to ¥10.9 billion. In the Umbro brand, sales are expanding in lifestyle products such as the backpack Danker and dad shoes mainly in South Korea. Golf wear and related products sales were ¥3.8 billion. While, outdoor wear and related products sales during Q1 FY20 were ¥848 million.

Fibre2Fashion News Desk (JL)

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