Descente Cuts Outlook amid Boycott in South Korea
Osaka, Nov. 6 (Jiji Press)--Descente Ltd. <8114> announced Wednesday a sharp reduction in its consolidated net profit forecast for the year ending next March, citing the impact of a boycott of Japanese products in South Korea.
The Japanese sports goods maker saw its sales in South Korea drop by over 30 pct in July-September amid strained relations between the two countries and expects a similar situation for October-December.
"If things don't change, we'll have to take steps such a review of our sales network," Shuichi Koseki, president and chief executive officer of Descente, told a press conference, referring to the company's South Korea operations.
The company lowered its full-year net profit forecast from 5.3 billion yen to 700 million yen, which is down 82.3 pct from the previous year's results.
It also lowered its full-year sales projection from 144 billion yen to 130.8 billion yen, down 8.2 pct from the previous year.
[Copyright The Jiji Press, Ltd.]