Descente’s total sales increased by 12 percent to 86,099 million yen (€619.9m) in the nine-month period ended Dec. 31, 2022, leading to a 67 percent jump in operating profit to ¥7,300 million (€50.4m) versus ¥4,380 million. The net profit rose by 106 percent to ¥10,172 million (€70.2m).
Besides its own brand, the Japanese company holds territorial licenses or trademark rights for several western brands. All labels, except for Munsingwear, booked higher sales during the period. Descente brand sales increased by 11 percent to ¥372 million (€267.9m); Le Coq Sportif revenues rose by 10 percent to ¥215 million (€154.8m); Munsingwear sales fell by 2 percent to ¥82 million (€59.1m); Arena sales jumped by 31 percent to ¥59 million (€42.5m); and Umbro sales were up by 39 percent to ¥86 million (€62.0m).
Heading into the fourth quarter, the group said sales and profits in South Korea and Japan are steady, but China is slowing because of pandemic impacts. China realized significant sales increases from Descente and strong gains from Arena. In Japan, sales of Descente increased in the direct-to-consumer channel, especially in the winter and golf category. Umbro drove revenues in South Korea.
On the store expansion front, doors remain steady in Japan at 64 but have fallen by 42 doors to 782 in South Korea. Umbro locations there continue to be opened as locations for other brands have contracted. In China, where there are 756 total locations, Descente is expanding its selling square footage by opening more large-scale stores and relocating existing doors to better locations.
Descente’s current FY22 outlook, as last updated on Nov. 7, calls for ¥8,100 million (€55.9m) in annual operating income, an estimated net profit of ¥10,000 million (€69.0m) and total revenues of ¥118,000 million (€814.2m).
