Workman (7564) investor relations material

Executive summary

• Achieved record-high profit for Q1, with both revenue and profit increasing year-over-year for the second consecutive year.

• Operating revenue rose 24.7% year-over-year to ¥51,812 million for the quarter ended June 30, 2026.

• Net sales at all chain stores reached ¥67,561 million, up 18.6% year-over-year.

• Mass Market Products, especially recovery wear, drove sales growth, though June's unfavorable weather caused Q1 sales to fall short of plan.

• Store network expansion and product innovation remain key strategic focuses.

Financial highlights

• Operating profit grew 33.3% to ¥12,031 million; net income up 34.0% to ¥7,792 million.

• EPS increased from 71.28 yen to 95.48 yen year-over-year.

• Gross profit margin improved by 1.6 points to 38.3%.

• Equity ratio stood at 83.6% as of June 30, 2026.

• Total assets were ¥184,523 million, with net assets at ¥154,235 million.

Outlook and guidance

• Full-year earnings forecast remains unchanged despite delayed summer demand.

• Full-year operating revenue forecast is ¥183,376 million, up 14.0% year-over-year.

• FY 3/2027 targets: sales at all chain stores ¥237,970 million (+13.7% YoY), operating profit ¥31,112 million (+8.2% YoY), net income ¥22,329 million (+8.3% YoY).

• Annual dividend forecast maintained at ¥89.00 per share.

• Plans to open 34 new Colors stores and renovate 200+ stores annually.