Business news :Descente Fiscal Q3 Profits Decline on Expense Increase

Descente reported sales for the fiscal third quarter ended Dec. 31 increased 4.3 percent to ¥21.6 bn ($266 mm) from ¥20.7 bn ($268 mm) in the year-ago period.  Gross margins improved 180 basis points to 46.8 percent of sales for the quarter, compared to 45.0 percent of sales in the prior-year fiscal third quarter.  The company saw a reversal in their efforts to reducing expenses as SG&A grew by 320 basis points to 42.2 percent of sales.

The company saw operating income fall 20.6 percent to ¥997 million ($12 mm) from ¥1.25 billion ($16 mm) in fiscal Q3 2012 when operating profits surged more 50 percent.

Descente net income came in at ¥786 mm ($9.7 mm) in fiscal Q3, a 9.9 percent decrease in the bottom line versus ¥872 mm ($11 mm) in the year-ago period. 

Inventory was up 23.4 percent at the end of the quarter to ¥17.9 bn ($209 mm).

In addition to its own brand, Descente’s companies and affiliates manufacture and distribute a broad array of global sports apparel brands for cycling, golf, outdoor, racquet, snow sports and volleyball under license for the Asian markets, including China, Hong Kong and Korea. Licensed brands include Cutter & Buck, Lecoq Sportif, Marmot, Munsingwear and Umbro.

 

( SportsOneSource Media )