Japan Eyewear (5889) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 rose 15.8% YoY to ¥4,854 million, with operating profit up 28.5% YoY to ¥1,680 million and net profit up 36.2% YoY to ¥1,066 million, both reaching record Q1 highs.

• Growth was driven by strong store sales, robust overseas and inbound sales, and continued brand popularity in Asia, with new store openings in Japan and overseas.

• Operating profit margin reached 34.6%, aided by one-off revenue recognition; net profit benefited from a reversal of prior-year tax expenses.

• The Japanese economy showed moderate recovery, but uncertainties remain due to inflation, geopolitical risks, and global economic factors.

Financial highlights

• Gross margin remained high at 79.4% of sales, nearly flat YoY.

• EBITDA increased 23.0% YoY to ¥2,173 million; adjusted EBITDA up 19.6% YoY to ¥2,137 million.

• SG&A expenses rose 11.4% YoY, mainly due to new store openings and higher sales.

• Basic earnings per share rose to ¥44.14 from ¥32.46 YoY.

• Total assets at quarter-end were ¥39,678 million, with total equity at ¥18,288 million.

Outlook and guidance

• FY2027 full-year forecast: revenue to rise 10.5% YoY to ¥20.6 billion, operating profit up 14.2% to ¥6.8 billion, and net profit up 16.3% to ¥4.4 billion.

• Q1 progress rates: 23.6% for revenue, 24.7% for operating profit, and 24.2% for net profit, in line with seasonal expectations.

• No changes have been made to the previously announced earnings forecast.

• Initiatives include opening 5+ stores in Japan, 2+ in Greater China, further price increases, and strict cost control.