ONWARD Holdings (8016) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net sales rose 5.5% YoY to ¥63,466m; operating profit increased 5.5% to ¥5,647m and attributable profit rose 18.1% to ¥5,043m.

• Strategic brand promotions and lower SG&A ratio supported growth, partly offset by gross-margin pressure from early summer apparel and inventory optimization.

Financial highlights

• Gross profit was ¥35,606m, up from ¥34,307m; recurring profit rose 7.8% to ¥5,621m and EBITDA increased 5.3% to ¥7,032m.

• Gross margin declined 0.9pt to 56.1%, while the SG&A ratio improved 0.9pt to 47.2%; operating margin remained 8.9%.

• Comprehensive income fell 17.2% to ¥3,025m, including ¥2,017m of other comprehensive losses.

• Q1 net profit included ¥1,389m in gains from investment-security sales; extraordinary losses fell to ¥50m from ¥310m.

Outlook and guidance

• FY2027 first-half forecasts unchanged: sales ¥117,500m, operating profit ¥6,400m, recurring profit ¥6,200m, attributable profit ¥5,600m and EBITDA ¥9,300m.

• Full-year forecasts unchanged: sales ¥247,000m, operating profit ¥12,800m, recurring profit ¥12,300m, attributable profit ¥11,200m and EBITDA ¥18,800m.

• Annual dividend forecast is ¥33 per share; marketing initiatives planned for Q2 as the business environment changes.