Gunze posts FY19 sales of ¥140 billion

02 Jun '20

2 min read

Pic: Gunze

Gunze, a Japanese clothing brand, posted marginal sales decline to ¥140.31 billion in fiscal 2019 ended on March 31, 2020 compared to sales of $140.70 billion in previous fiscal. Operating profit grew 0.8 per cent to ¥6.74 billion (FY18: ¥6.69 billion). Net profit attributable to owners of the parent rose 7.3 per cent to ¥4.38 billion (¥4.08 billion).

Sales of Apparel segment declined 4.3 per cent to ¥69.49 billion (¥72.60 billion). The apparel business was negatively impacted by a downturn in consumer confidence after the consumption tax hike, natural disasters including large typhoons, a particularly warm winter, and the spread of Covid-19, as company reported.

Sales of Functional Solutions increased 5.9 per cent to ¥56.36 billion (¥53.23 billion). Functional solutions business was reportedly affected by the slowdown in the semiconductor market. However, sales grew, partly due to the positive contribution of M&A.

Lifestyle Creations segment sales dropped 2.2 per cent to ¥14.94 billion (¥15.28 billion). The shopping centre business suffered a negative impact from the consumption tax hike and the Covid-19 pandemic.

For fiscal 2020 the group reported that while the apparel business has concerns about the slump of in-store sales due to the spread of Covid-19, the group aims to further promote the appeal of its products on the EC channel.

Fibre2Fashion News Desk (JL)

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