The Japanese sporting goods brand’s net income declined by 23% in fiscal Q3 ended Dec. 31 to ¥1,393 million ($9.9 mm) from ¥1,814 million due to shrinking margins, despite a 21% sales improvement to ¥48,198 million ($340.9 mm) from ¥39,800 million. All categories contributed to the rising top line, with sneakers leading the way, growing 39%, equipment up 24%, apparel increasing 13% and services/other inching up 1%. Gross margin tumbled 460 basis points to 38.6%, while operating expenses increased 13%, but still leveraged 250 b.p. on the higher sales.

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