Goldwin’s revenues dropped by 16 percent to ¥19,358 million (€157.4m-$182.5m) in the second quarter ended Sept. 30, and the Japanese sports apparel company’s net income tumbled by 59 percent from the year-ago period to ¥915 million (€7.4m-$8.6m). The gross margin fell by 1.4 percentage points to 50.6 percent.
Golwin spoke of a prolonged impact from the coronavirus infection in Japan during the quarter. Although there was a partial recovery in consumer spending after the lifting of the national state of emergency, the Japanese economy has yet to reach a full-scale recovery in consumption trends, and the situation remains difficult, the company said.
It noted that in the sports apparel industry, the crisis has triggered a strong demand for running and camping as people increasingly seek to avoid crowded places. In addition, as people are spending more time at home, self-care products such as yoga and comfortable loungewear for remote working have been popular.
In June, all of Goldwin’s directly-managed stores resumed operations after the lifting of the state of emergency, and while there was a remarkable recovery in suburban stores, especially for family shopping, the demand has not recovered inside cities, especially in the stores in the center of Tokyo. On the other hand, the e-commerce business has continued to show double-digit growth since the renewal of Goldwin’s website in June.
Outdoor brands sold by Goldwin in Japan such as The North Face and Helly Hansen recovered to 96 percent of the previous year’s level in the second quarter, with own retail and wholesale recovering steadily.
Among the athletic brands sold by Goldwin, Danskin yoga wear experienced strong sales, while the Canterbury brand suffered a decline from the previous year due to the cancellation of rugby matches.
As a result of the current repositioning of the Ellesse brand, sales declined as compared to last year. Meanwhile, the performance of Golwin’s joint venture in Korea with Youngone Outdoor was described as robust.