In the backdrop of a subdued global and domestic economic scenario, Japanese women’s apparel manufacturer Honeys Co. Ltd reported a slight dip in its sales revenue in the first half of FY 2013-14.
The company which is engaged in the design, sale and manufacture of lady's wear and accessories, witnessed a 0.9 per cent dip in consolidated net profit at 29,777 million yen in the six months ended November 30, 2013 from 30,054 million yen in the same period a year ago.
Cooling pace of consumer spending in Japan as rising consumer prices crimp room for additional purchases, and a slowdown in major export markets weighed on the company’s revenue in the first six months of the financial year ending May 31, 2014.
Further, bad weather amid typhoons in late summer in Japan also crimped the demand for women’s casualty wear.
In its home market, the company witnessed a dip of 5.8 per cent in sales at 24,069 million yen in the six months ended November 30, 2013 from the same period a year ago amid bad weather.
In China, sales rose 26.5 per cent at 5,707 million yen in H1 FY 2013-14 from the same period a year ago even as sales competition became severe.
However, rising labour costs in China, coupled with a weaker yen which pushed up import costs, weighed on the profitability of the company as consolidated net income slumped by 65.7 per cent to 434 million yen in in the six months ended November 30, 2013 from 1,266 million yen in the year ago period.