The Japanese group reported a 14 percent increase in annual net profit to ¥12,014 million (€71.6m), exceeding guidance by 9.2 percent, and a 12 percent rise in operating income to ¥8,740 million (€58.0m) for the 12 months ended March 31. Gross margin improved by 210 basis points to 59.5 percent, bolstered by improvements in its Japan Dtc business and stronger full-price selling in South Korea.
Regionally, Descente suffered a 5.3 percent drop in annual sales in its home market to ¥46,464 million (€276.5m) due to impact from the golf boom and the termination of its Marmot brand business. Umbro and Arena sales improved year-over-year to ¥2,549 million (€15.2m) and ¥4,103 million (€24.4m), respectively.
In South Korea, total annual revenues increased by 6.4 percent to ¥67,472 million (€402.0m). The company’s Umbro business rose by 27 percent to ¥12,518 million (¥74.6m) but the le coq sportif and Munsingwear segments declined by 8.4 percent and 17.3 percent, respectively, to ¥14,028 million (€83.6m) and ¥2,144 million (€12.8m). The joint venture Arena business soared by 31 percent to ¥11,622 million (€69.2m).
In China, each brand recovered from the impact of Covid-related lockdowns in the prior year. The Descente business, a joint venture, increased by 55 percent to ¥93,617 million (€557.8m). Arena, celebrating its 50th anniversary, reported a 30 percent sales gain to ¥3,044 million (€18.1m), and le coq sportif revenues increased by 16 percent to ¥10,255 million (€61.1m).
Descente ended its fiscal year with 58 stores in Japan, 777 in South Korea, and 716 in China.
