TOKYO — Net earnings of Onward Kashiyama Co. Ltd. rose slightly for the fiscal year ended Feb. 29, but sales declined a comparable amount. Net profits for the Japanese apparel giant increased 2.6 percent to $56.9 million. Dollar figures were converted at current exchange.
The firm reported extraordinary losses of $19.6 million due to the devaluation of the market share of its stocks, compared with extraordinary losses of $20.3 million in the prior year. Operating profits for the fiscal year rose 26.3 percent to $117.9 million.
Sales for the fiscal year dropped 2.6 percent to $1.57 billion. “The slowdown in personal consumption was more severe than expected,” the company said.
Sales of women’s wear rose 7.8 percent to $766.6 million and accounted for 48.9 percent of revenues. Men’s wear sales dropped 14.3 percent, to $657 million, and made up 41.9 percent of total sales.
Gross margin increased to 44.5 percent of sales, up from 42.6 percent a year earlier. Selling, general and administrative costs increased to 37 percent of sales from 35 percent in the prior year.
For the current fiscal year, which ends Feb. 28, 2001, the firm projects a modest increase in net profits, to $62.9 million , on essentially flat sales of $1.58 billion.