Goldwin (8111) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027.3 were ¥23,592 million, down 1.2% year-over-year, mainly due to sluggish summer merchandise and wholesale sales impacted by unfavorable weather and declining inbound demand from mainland China.

• Operating profit dropped to ¥371 million, a 17.9% decrease from internal targets and 82.1% year-over-year, impacted by higher SG&A and personnel expenses.

• All business segments—Performance, Lifestyle, and Fashion—experienced revenue declines compared to the previous year.

• Ordinary profit fell 30.9% year-over-year to ¥2,598 million, partially offset by a 33.6% increase in equity-method affiliate profits.

• Profit attributable to owners of parent decreased 29.5% year-over-year to ¥2,249 million.

Financial highlights

• Gross profit margin improved to 54.0%, up 1.1 percentage points year-over-year, with gross profit at ¥12,746 million.

• SG&A expenses rose 17.1% year-over-year to 12.3 billion yen, with the SG&A ratio increasing by 8.2 points to 52.5%.

• E-commerce net sales reached 3.12 billion yen, up 1.8% year-over-year, with the e-commerce ratio at 13.2%.

• Inventory at quarter-end was 21.2 billion yen, 9.3% higher than the previous year.

• EPS was ¥16.45, down from ¥23.33 year-over-year, adjusted for stock split.

Outlook and guidance

• Six-month forecast revised downward: net sales ¥55,600 million (down 7.2% from previous forecast), operating profit ¥4,200 million (down 40.0%), ordinary profit ¥7,000 million (down 23.9%), profit attributable to owners of parent ¥5,400 million (down 20.6%).

• Full-year forecast unchanged: net sales ¥145,400 million (up 5.7% year-over-year), operating profit ¥26,100 million (up 0.9%), ordinary profit ¥34,100 million (up 0.6%), profit attributable to owners of parent ¥25,600 million (up 6.3%).

• Revenue is expected to be weighted toward the second half, with autumn/winter product sales as a key driver.

• Annual dividend forecast remains at ¥70 per share (post-stock split basis).