Improving results have been reported by the three major Japanese sports retailers. Xebio finished its own fiscal year on March 31 with a second sequential quarterly increase in revenues, but not enough to offset previous declines. Its net income for the full financial year inched up to ¥412 million (€3.1m-$3.8m) from ¥408 million in the year-ago period, despite a drop in revenues of 10 percent to ¥202.4 billion (€1.6bn-$1.9bn). The gross margin slipped by 0.5 percentage points to 38.9 percent.
Winter sports sales declined by 2 percent, outdoor products by 11 percent, sports apparel by 12 percent and general sporting goods and footwear by 22 percent. Golf equipment, which is a major category for Xebio, was the only segment to record a small gain for the year.
The company opened 28 new stores and closed 24 others, ending up with a total network of 864 units including 222 Xebio and Victoria sporting goods banners, 379 Victoria Golf and Golf Partner stores, and 76 L-Breath outdoor stores.
For the current financial year, Xebio expects to report higher net income of ¥2.48 billion (€18.6m-$22.6m) on higher sales of ¥225.3 billion (€1.7bn-$2.1bn).
Alpen, a major competitor of Xebio whose fiscal year ends in June, scored much better for the first nine months ended March 31, which didn’t include a very poor June 2020 during the first wave of the pandemic. It reported a net profit of ¥8,335 million (€64.0m-$78.0m) for the period, against a loss of ¥411 million (€3.1m-$3.8m), on 3 percent higher revenues of ¥171.6 billion (€1.3bn-$1.6bn). The gross margin advanced by 2.6 percentage points to 42.4 percent, while operating expenses were cut by 2.9 percentage points as related to sales.
Here again, golf was the only category that registered an increase, growing by 12 percent. Winter sports were off by 12 percent and general sporting goods by less than one percent. Six store closures were offset by six store openings, leaving the total store count at 392 units including 52 Alpen and Alpen Outdoor stores, 144 Sport Depots and 194 Golf 5 doors.
Alpen expects the full financial year to show a solid improvement in net income to ¥8.44 billion (€63.2m-$77.1m) on sales of ¥235 billion (€1.8bn-$2.1bn).
A few weeks ago, another big Japanese sports retailer, Himaraya, had reported a turnaround to a profit of ¥578 million (€4.4m-$5.4m) for its latest financial year, ended Feb. 28, from a loss of ¥386 million in the prior year. Revenues went up by 4 percent to ¥30.6 billion (€234.6m-$286.2m) with gains of 25 percent in outdoor equipment and 21 percent in the ski and snowboard segment, while golf inched up by 2 percent and general sports equipment declined by 3 percent.
The company closed five stores in the past year, ending up with 99 units. Warning that uncertainties remain about new coronavirus infections, Himaraya guided for net income of ¥900 million (€6.7m-$8.2m) on sales of ¥61 billion (€456.8m-$557.0m) for the present financial year.
