Descente posted a comprehensive net loss of 591 million yen (€4.81m-$5.30m) in the third quarter ended Dec. 31 compared with a profit of ¥2,378 million (€19.3m-$21.3m) in the year-earlier period. The only reason was a foreign currency loss of ¥2,242 million (€18.2m-$20.1m). Excluding the currency effect, the gross margin expanded by 3.43 percentage points to 55.0 percent, while revenues increased by 7 percent to ¥31.9 billion (€259.4m-$285.8m). Sales of ¥14.2 billion (€115.4m-$127.2m) in the domestic Japanese market were led by higher sales under the Descente brand, which offset declines at Le Coq Sportif and Umbro. The Descente brand also grew in the rest of Asia, where the company had sales of ¥15.9 billion (€129.3m-$142.4m). The remaining ¥1,744 million (€14.2m-$15.6m) generated in Europe and the U.S. included the consolidated sales of two newly acquired companies, Inov-8 and Pedes Investments.

Topics