Descente recorded a net loss of ¥2,018 million ($18.8 mm) in the fiscal first quarter ended June 30, against a profit of ¥354 million last year, on revenues that fell 47% to ¥15,553 million ($144.7 million) from ¥29,479 million with declines across its portfolio of brands. Gross margin was down 460 basis points to 54.0%, while efforts to cut spending reduced SG&A by 30%, coming mostly out of the advertising budget, but it still deleveraged on the top line decline. Descente maintained its previously issued guidance for sales of ¥101 billion and net income of ¥5 billion this year.

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