ONWARD Holdings (8016) Q3 2025 earnings summary

Executive summary

• Nine-month net sales rose 6.1% YoY to ¥149,940m; operating profit fell 11.8% to ¥8,560m and recurring profit fell 6.6% to ¥8,456m.

• Profit attributable to owners of parent increased 0.6% to ¥5,780m, while delayed winter full-price sales and inventory adjustments weighed on gross margin and operating profit.

Financial highlights

• Gross profit rose to ¥83,433m from ¥80,274m, while SG&A increased to ¥74,872m from ¥70,573m.

• Gross margin declined 1.2 percentage points to 55.6%; operating margin fell 1.2 points to 5.7% and recurring margin fell 0.8 points to 5.6%.

• EBITDA was ¥12,328m, down 7.2% YoY; EBITDAX margin was 8.2%, down 1.2 percentage points.

Outlook and guidance

• FY ending February 28, 2025 forecasts were ¥210,000m sales, ¥12,500m operating profit and ¥12,200m recurring profit.

• Parent-profit forecast rose from ¥8,250m to ¥8,500m, partly reflecting deferred tax assets recognized after reviewing the full-year outlook against nine-month results; forecast EPS is ¥62.62.

• Forecast EBITDA is ¥17,700m, up 10.3% YoY.

• Winter apparel marketing was strengthened for Q4 to support full-price sales; the year-end dividend forecast increased to ¥26 per share from ¥24.