Himaraya reported an overall sales increase of 8 percent to 62.13 billion yen (€480m-$582m) for the financial year ended Aug. 31, but the momentum is fading away, and the Japanese sporting goods retailer is projecting a decline to ¥59.50 billion (€460m-$530m) for the current year. The company posted net income of ¥1,412 million (€10.9m-$13.2m) for the past year, compared with a loss of ¥789 million in the prior year, in spite of a ¥66 million impairment charge for store closures. However, the gross margin improved by 2 percentage points to 35.8 percent, while operating expenses declined by 2.1 percentage points in relation to sales. Himaraya’s investments on e-commerce paid off as consumers preferred to buy more products online. All categories recorded higher sales, led by a 19 percent gain in outdoor as well as in the smaller ski & snowboard category. Golf went up by 10 percent, while general sporting goods rose by 3 percent. Himaraya sees the gross margin continuing to improve this year up to a level of 37.1 percent, accompanied by stable operating expenses, it should lead to a net profit of around ¥1,440 million (€11.1m-$12.9m).

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