Amidst a backdrop of a weak economic scenario, Japanese apparel company Daidoh Limited witnessed a slight dip in its sales performance in H1 FY 2013-14.
The company, which is mainly engaged in the manufacture and sales of yarns, woolen fabrics and apparel to the commercial market, and also manages retail sales of these products, reported a 4.9 per cent decline in consolidated net sales at 12,027 million yen in the six months ended 30 September 2013 from the same period a year ago, when consolidated net sales stood at 12,652 million yen.
Consumer spending in Japan is recovering at a weak pace amid a subdued economic revival, weighing on the company’s sales performance in the first half of the current financial year.
With wage growth in Japan predicted to lag the rise in consumer prices in the upcoming financial year amid the doubling of the sales tax rate, household budgets may come under even further stress, signaling a challenging outlook for the Japanese apparel industry.
However, an improving global economic outlook amid a recovery in the European economy bode well for the company’s export prospects, going forward.
The company’s clothing segment is engaged in the production and sale of wool textile and clothing for both men and women.
The company’s wholly owned subsidiaries, which are engaged in the apparel business, include NEW YORKER Ltd, Shanghai NewYorker Clothing Sales Co. Ltd, Daidoh International Ltd and Daidoh Ltd Trading (Shanghai). Co. Ltd.
The company swung to a consolidated net loss of 597 million yen the six months ended 30 September 2013 as subdued revenue and rising import costs amid a weaker yen weighed on profitability