Descente Posts Profit on JV Benefit
The Japanese apparel company benefitted from a ¥7,535 million windfall from the reorganization of its Descente China Holding joint venture, which drove net income of ¥6,093 million ($58.3 mm) in the fiscal third quarter ended Dec. 31 against a loss of ¥440 million last year. Revenues continued to be affected by the pandemic, however, falling 12% in the period to ¥23,741 million ($227.2 mm) from ¥26,942 million. Gross margin improved by 40 basis points to 52.0%, and slashed expenses kept SG&A in check, declining 320 b.p. despite the lower sales. The results led Descente to reduce its full year sales ... Log in to view full article.