(Filed Under Financial and General Interest News). Japan-based Wacoal’s sales for the nine months ending December 31, 2015 rose 7% while net income rose 78.1%. Meanwhile the company reported mixed results from its operations in the U.S. and Europe.
The international firm earned 10,027 million yen (about $83.8 million at current exchange rates) on sales of 154,017 million yen (about $1.287 billion) in the nine months of the current fiscal year, compared to 5,631 million yen (about $47.0 million) on sales of 143,980 million yet (about $1.203 billion) in the nine months ending December 31, 2014.
In discussing portions of its business outside Japan the company noted, “With respect to Wacoal America, Inc., sales of our core Wacoal brand products in the United States, which remained unchanged from the results for the corresponding period of the previous fiscal year, as well as favorable sales from e-commerce websites and exports to surrounding countries and Europe contributed to overall sales which exceeded the results for the corresponding period of the previous fiscal year. In terms of profit, operating income on a local currency basis fell below (but operating income on a yen converted basis exceeded) the results for the corresponding period of the previous fiscal year due to an increase in selling, general and administrative expenses which resulted from recording our 30th anniversary promotion expenses.”
The company added, “With respect to Wacoal Europe, sales in the United Kingdom performed well due to the expansion of our Wacoal brand portfolio there, and sales in the United States also performed well as a result of growth in sales from e-commerce websites of other companies.”
In 2012 Wacoal acquired Eveden Group, the UK-based lingerie and swimwear company, which itself owned several brands including Fantasie, Freya, Huit, Fauve, Elomi and Goddess.
Not all of Europe, however, performed well for Wacoal in the period. “Consumer spending in the Eurozone area did not show a recovery due to the terrorist attacks in Paris, in addition to the influence of the unstable political and economic situation in Europe. Therefore, sales in Eurozone, particularly in France, showed a substantial decrease. As a result, total sales on a local currency basis fell below the results for the corresponding period of the previous fiscal year, but sales on a yen converted basis exceeded the results for the corresponding period of the previous fiscal year. With regard to profit, operating income largely fell below the results for the corresponding period of the previous fiscal year as a result of decreased sales and an increase in purchase costs due to the appreciation of the dollar.”
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