Goldwin’s revenues dropped by 16 percent in the second quarter to ¥19,358 million (€157.4m-$182.5m), while net income tumbled by 59 percent from the year-ago period to ¥915 million (€7.4m-$8.6m). The company’s gross margin fell by 1.4 percentage points to 50.6 percent.
The company said that the impact of the coronavirus infection was prolonged in Japan during the quarter, and although there was a partial recovery in consumer spending after the lifting of the state of emergency, the Japanese economy has yet to reach a full-scale recovery in consumption trends, and the situation remains difficult.
It noted that in the sports apparel industry, the crisis has triggered a strong demand for camping as people increasingly seek to avoid crowded places. In addition, as people are spending more time at home, self-care products such as yoga or running items, and comfortable loungewear for remote working, were popular.
In June, all directly-managed stores resumed operations after the lifting of the state of emergency, and while there was a remarkable recovery in suburban stores, especially among families, demand has not recovered inside cities, especially, stores in the center of Tokyo. On the other hand, the e-commerce business has continued to show double-digit growth since the site renewal in June.
Outdoor brands such as The North Face and Helly Hansen have recovered to 96 percent of the previous year’s level in the second quarter, as they captured the demand for camping and running, with both direct-management stores and wholesalers recovering steadily.
Among athletic brands, there was strong sales of Danskin yoga wear, while the Canterbury brand experienced a decline in sales from the previous year due to the cancellation of rugby matches.
As a result of the current repositioning of the Elesse brand, sales declined compared to last year. Meanwhile, performance of the joint venture in Korea with Youngone Outdoor was robust.