Gunze, a Japanese clothing brand, posted 18.2 per cent sales decline to ¥58.0 billion in its second quarter (Q2) FY20 ended on September 30, 2020 compared to sales of ¥71.0 billion in same period previous fiscal. Company’s net income for six-month period plunged to ¥222 million (Q2 FY19: ¥2.1 billion). Ordinary income slipped to ¥1.4 billion (¥3.3 billion).
Sales of Apparel segment declined 18.0 per cent to ¥29.2 billion (¥35.6 billion). The apparel business as a whole was heavily impacted by the slump of in-store sales caused by the closure of stores and people’s avoidance of going out. However, after the lifting of the state of emergency, Gunze’s apparel business showed a recovery trend.
Sales of Functional Solutions dropped 16.4 per cent to ¥23.6 billion (¥28.2 billion). In plastic film, sales of packaging films were strong because of increasing demand related to home cooking. However, shrink label films for beverage bottle applications experienced slow sales due to the need for avoiding outings or events to contain the spread of Covid-19.
Lifestyle Creations segment sales dropped 24.8 per cent to ¥5.4 billion (¥7.3 billion).
Fibre2Fashion News Desk (JL)
Gunze, a Japanese clothing brand, posted 18.2 per cent sales decline to ¥58.0 billion in its second quarter (Q2) FY20 ended on September 30, 2020 compared to sales of ¥71.0 billion in same period previous fiscal. Company's net income for six-month period plunged to ¥222 million (Q2 FY19: ¥2.1 billion). Ordinary income slipped to ¥1.4 billion (¥3.3 billion).