Japan Eyewear (5889) Q2 2027 earnings summary

Executive summary

• Revenue for the six months ended July 31, 2026, rose 14.8% year-over-year to 10,258 million yen, with operating profit up 21.4% to 3,503 million yen and net profit up 28.5% to 2,241 million yen, all reaching record highs for the interim period.

• Growth was driven by strong store sales, new store openings, robust domestic and overseas demand, and increased brand penetration, especially in Asia.

• Both Kaneko Optical and Four Nines brands saw robust customer support, with Kaneko Optical opening a flagship store in Sabae and expanding in China.

Financial highlights

• Gross margin was 78.6% (down 0.4 pts YoY), operating profit margin 34.2% (up 1.9 pts YoY), and EBITDA margin 44.0% (up 1.3 pts YoY); EBITDA for the interim period increased 18.2% YoY to ¥4,510 million.

• Adjusted EBITDA for the period was 4,489 million yen, up 15.7% year-over-year.

• Basic earnings per share rose to ¥92.67 from ¥72.29 year-over-year.

• Progress rates against the full-year plan: revenue 49.8%, operating profit 51.5%, net profit 50.9%.

• Q2 revenue grew 13.9% YoY to 5,404 million yen, with net profit up 22.3% to 1,175 million yen.

Outlook and guidance

• Full-year FY2027/1 forecast: revenue to rise 10.5% YoY to 20.6 billion yen, operating profit up 14.2% to 6.8 billion yen, and net profit up 16.3% to 4.4 billion yen; no changes to previously announced guidance.

• Initiatives include opening more than 5 new stores in Japan, over 2 in Greater China, targeting 35% overseas customer sales, and further price increases.

• Dividend policy targets a 40% payout ratio, with an annual dividend forecast of ¥86 per share.