Wacoal Holdings (3591) Q2 2025 earnings summary

Executive summary

• Revenue for FY2025 1H was ¥90.17 billion, down 5.2% year-over-year, mainly due to weak performance in the U.S. and China, partially offset by strong e-commerce and European sales.

• Business profit was ¥2.3 billion, down 39.6% year-over-year but exceeded plan due to effective SG&A cost control.

• Operating profit surged to ¥11.6 billion, reversing a prior-year loss, driven by gains on real estate sales.

• Profit attributable to owners was ¥8.8 billion, a turnaround from a ¥4.4 billion loss last year.

• Strategic initiatives included business model reforms, asset sales, and the acquisition of Bravissimo Group in the UK.

Financial highlights

• Gross profit margin improved to 56.6% (+0.2pt YoY), while SGA ratio rose to 54.1% (+1.7pt YoY).

• Major one-time gains included ¥7.7 billion from the sale of the former Fukuoka Office site and ¥1.4 billion from the Asakusabashi Building.

• Basic earnings per share were ¥159.69, compared to a loss of ¥76.09 last year.

• Cash and cash equivalents increased to ¥37.57 billion.

• Total assets decreased to ¥288.86 billion, and equity attributable to owners fell to ¥206.97 billion.

Outlook and guidance

• Full-year revenue forecast revised down to ¥181 billion (from ¥183 billion), and business profit to -¥2.5 billion due to continued weakness in the U.S. and China.

• Operating profit forecast revised up to ¥4.8 billion, reflecting real estate gains.

• Net profit forecast raised to ¥4.5 billion, up ¥1.3 billion from the previous plan.

• Dividend forecast maintained at ¥100 per share for the year.

• Basic EPS forecast at ¥81.91.