The Japanese group said warmer weather hurt sales of down jackets and other cold weather gear in October and November.
Goldwin’s operating income declined by 11.7 percent to ¥16,939 million (€108.3m) despite a 2.1 percent increase in net sales to ¥96,833 million (€619.1m). Net income inched up by 0.7 percent to ¥17.695 million (€113.1m) for the period ended Dec. 31.
Warm weather hurt sales
The Japanese group said warmer weather hurt sales of down jackets and other cold weather gear in October and November, but monthly sales rose by double-digits in December. Year-over-year gross margin fell by 160 basis points to 54.7 percent due to the delay in sales of cold weather gear. Comparable inventory at period end was up 19 percent to ¥21,029 million (€134.4m) and largely consisted of The North Face core products. Goldwin said it intends to maintain suggested price points and not conduct excessive sales from Q4 onward.
Expect higher sales but lower profit in Q1 2025
The company continues to expect higher annual sales but lower profits for the fiscal year ending March 31 due to higher temporary expenses and costs associated with its head office relocation. Annual sales are projected to increase by 5 percent to ¥133.2 billion (€851.6m) with operating income forecast to slip by 24 percent to ¥18.1 billion (€115.7m). FY net income is pegged at ¥21.0 billion (€134.3m). By business segment, year-over-year performance sales are forecast to decline by 2.0 percent to ¥41.0 billion (€262.1m); lifestyle sales are predicted to improve by 9.2 percent to ¥81.0 billion (€517.9m); and fashion sales should increase by 2.6 percent to ¥11.2 billion (€71.6m).
While the predominance of Goldwin’s retail stores are in either Japan (15) or China (70), the group has plans to increase its presence in Europe over the next two years with stores in London, Chamonix, and Paris and in the US with doors in New York and Aspen, Colorado.
