President's Message

　From 2021 to 2023, our company advanced various strategies under our mid-term management plan “D-Summit 2023,” including “I. Implement strategies by regions for Japan, South Korea, and China,” “II. Improvement of profitability in Japan business,” and “III. Enhance our manufacturing capabilities.”

　As a result, profitability increased in Japan, Korea, and China. In fiscal year 2023, our ordinary profit and profit attributable to owners of parents reached record highs for the second consecutive year.

　In Japan, by prioritizing brand value enhancement, we achieved improved profitability through strong regular-price sales, reduced loss rates from returns and markdowns, and an increased sales ratio of our DTC business. Various measures have steadily borne fruit, and we were particularly able to increase the gross profit margin for our corporate brand DESCENTE. We consider it a significant achievement that results emerged in the second year after initiating various initiatives.

　Although Korea temporarily struggled due to the boycott of Japanese products and COVID-19 impacts, we continued to focus on enhancing brand value, particularly for DESCENTE, resulting in a recovery trend in fiscal year 2023. Similar to Japan, the athletic wear category is growing. “Umbro” is increasing sales particularly among Generation MZ, and we will continue to maintain this growth.

　In China, despite claims of general economic sluggishness, DESCENTE led the way as a recognized premium sports brand in the market. By combining forces with our JV partner ANTA, we have been able to significantly increase profits year after year. Meanwhile, “le coq sportif” has been struggling, so starting from fiscal year 2023, we are working on rebranding by refocusing on its core value as a sports brand.

　Regarding our new mid-term management plan “D-Summit 2026,” while continuing to focus on branding and increasing profitability in Japan, Korea, and China, we aim to take on the challenge of “two new areas” for further growth. The key driver for growth will be our corporate brand DESCENTE. We aim to deliver our products to many customers through our manufacturing capabilities and brand strength, which are the sources of our competitiveness. In expanding Japan’s DTC business, we are also focusing on the DESCENTE brand, setting a key target of increasing its DTC sales ratio to 80% through increased sales per store and store count expansion.

　We will also engage in new businesses under the keywords of Sports × Health and Sports × Information. To enter the wellness field, in addition to selling products for injury prevention and performance enhancement for athletes developed with sports trainer Hisao Kounoe, we will launch a new brand “KOUNOE” to expand our product offerings in the wellness sector. Furthermore, we are working on developing a platform that collects all kinds of information for practicing sports, exploring new business possibilities that extend to experiential business. For medium to long-term development, we will invest in both refining existing businesses and developing new businesses over the next three years.

　To enhance sustainable corporate value, we first aim to achieve record profits for the third consecutive term in fiscal year 2024 and become an excellent company that rewards its stakeholders. We will continue to work toward new developments.

June, 2024
President and Representative Director Shuichi Koseki