Amidst the backdrop of a weak economic scenario, Japanese clothing company Konaka Company Ltd witnessed a slight dip in sales revenue in the fiscal year ended September 2013.
The company, which is primarily engaged in the men’s clothing business, reported a 1.9 per cent decline in consolidated sales at 64.7 billion yen in the 12 months ended 30 September 2013 from 65.9 billion yen in the previous 12 months.
The weak pace of recovery in consumer spending in Japan weighed on the demand for luxury clothing items, adversely affecting the company’s sales performance last fiscal.
However, sales of business-related apparel remained firm in the 12 months ended 30 September 2013.
Some of the famous brands that the company offers include Donato Vinci (Milan, Italy), John Pierce (London, UK) and Yamamoto Kansai.
The company runs flagship men’s clothing stores such as Konaka-the-flag and SUIT SELECT.
Konaka Company Ltd witnessed a 34.1 per cent rise in its consolidated net profit at 6.729 billion yen in the 12 months ended 30 September 2013 from 5.017 billion yen in the previous 12-month period.
With the average Japanese consumer set to become more price sensitive in the coming months amid a hike in consumption tax, the outlook for the company’s sales remains challenging.
The company is banking on continued robust performance from its brand flagship store SUIT SELECT to bolster sales revenue going forward.
At the same time, Konaka Company Ltd is also eying aggressive expansion in international markets in Asia to help aid sales growth.
In the last fiscal year, the company opened 12 stores in international markets including six in Thailand, four in Singapore and two in China.