Descente’s annual revenues of ¥120,614 million (€815.5m) in FY22 exceeded its Nov. 2022 forecast of ¥118,000 million as the company generated higher year-over-year sales in Japan, South Korea and China. The group realized significant profit improvement in both Japan and South Korea but lower year-over-year profits in China due to higher SG&A costs and an inventory write-down. Annual operating income rose by 51.7 percent to ¥7,793 million (€52.7m) as net profit attributable to the owners grew by 69.4 percent to ¥10,550 million (€71.3m) from ¥6,229 million.
Consolidated FY22 brand sales showed year-over-year growth for Descente and Le Coq Sportif. Descente annual sales improved by 5.5 percent to ¥502 billion (€3.39b), while Le Coq’s annual revenues increased by 17 percent to ¥333 billion (€2.25b). Elsewhere, Munsingwear annual sales fell by 4.3 percent to ¥111 billion (€750.5m); Arena revenues increased by 28 percent to ¥74 billion (€500.3m); and Umbro sales kicked 32.6 percent higher to ¥122 billion (€824.9m).
The group ended 2022 with 729 doors in China, down for a fourth consecutive year and from 746 locations from the year-ago period. The base included 324 Le Coq Sportif stores, 191 Descente units and 190 Arena doors. As it aims to establish Descente’s image as a premium sports brand, it will continue to do collaboration projects with leading designers. Meanwhile, rebranding efforts in the market for le coq sportif and Munsingwear have already been implemented.
The total store count in Japan was 57 at year-end, down from 63, including 24 Descente doors. Total stores in South Korea were down 5.6 percent at year-end to 778, including 280 Descente, 211 Le Coq Sportif, 141 Arena and 111 Umbro locations.
Looking ahead to FY23, Descente is currently forecasting a 5.3 percent revenue expansion to ¥127,000 million (€858.7m), a 9 percent operating income growth to ¥8,500 million (€57.5m), and a 4.3 percent increase in net profit to ¥11,000 million (€74.4m).
