Japanese sports clothing and accessories company Descente Ltd has reported an increase in net sales by 1.2 per cent year-on-year (YoY) to 27.482 billion yen (approximately $189.6 million) in the first quarter of fiscal 2024 (Q1 FY24), driven by the positive effect of the yen's depreciation and strong sales of Descente and Umbro brands in South Korea.

Gross profit for the quarter saw a notable rise of 3.6 per cent YoY, reaching 17.11 billion yen. This increase was attributed to the sales growth, leading to a 1.5 percentage point improvement in the gross profit margin, which stood at 62.3 per cent, the company said in a press release.

Selling, general and administrative expenses rose by 1.866 billion yen, marking a 12.8 per cent increase YoY, totalling 16.427 billion yen. This surge in expenses negatively impacted Descente's operating income, which plummeted by 65 per cent YoY to 683 million yen.

Ordinary income also declined, albeit at a lower rate, falling by 23 per cent YoY to 3.455 billion yen. Net income attributable to owners of the parent company decreased by 14.2 per cent YoY, amounting to 2.739 billion yen.

Fibre2Fashion News Desk (DP)