Higher Descente brand sales coupled with positive currency exchange impact contributed to 1.2 percent revenue growth to ¥27,482 million (€171.9m) from ¥27,162 million for Q1 ended June 30. Year-over-year gross margin improved by 160 basis points to 62.3 percent from 60.7 percent on higher full-price sales, but operating income tumbled to ¥683 million (€4.3m) from ¥1,951 million. Net income improved by 16 percent to ¥2,739 million (€17.1m) from ¥3,191 million.
In its home Japan market, where it operates 58 stores, Descente brand sales rose by 2 percent to ¥2,643 million (€16.5m) but fell for Movesport (to ¥674 million) and Le Coq Sportif (-24% to ¥1,880 million) due to a struggling wholesale business. Umbro sales in the market declined by 8 percent to ¥565 million (€3.5m).
In China, where there are 698 total stores for all brands, higher sales per store contributed positively to a 33 percent year-over-year gain in Descente brand sales to ¥28,133 million (€175.9m). Le coq sportif sales, meanwhile, rose by 8 percent to ¥2,619 million (€16.4m) due to a positive currency impact. Arena sales increased by 9.5 percent to ¥486 million (€3.0m), and Munsingwear sales rolled back by 25 percent to ¥250 million (€1.6m).
In South Korea, all brands, except for Le Coq Sportif, had higher quarterly sales as the group ended the period with 779 doors market doors. Despite an ongoing sluggish golf market, Descente brand sales rose by 21 percent to ¥6,637 million (€41.5m). Arena sales increased by 15 percent to ¥2,840 million (€17.8m). Elsewhere, le coq sportif sales fell by 2.4 percent to ¥3,056 million (€19.1m); Umbro sales rose by 23 percent to ¥2,955 million (€18.5m); and Munsingwear sales increased by 4.8 percent to ¥461 million (€2.9m).
