Wacoal Holdings (3591) Q2 2026 earnings summary

Executive summary

• Revenue for FY2026 1H was ¥87.5 billion, down 2.9% year-over-year, mainly due to stagnant sales in women's innerwear, the sale of unprofitable businesses, and challenging market conditions in Japan, the U.S., and China.

• Gross profit margin improved by 1.4pt YoY to 58.0%, despite lower revenue, due to a higher retail ratio and cost controls.

• Operating profit surged 86.5% YoY to ¥21.5 billion, driven by gains from asset sales, cost controls, and the absence of prior-year rebranding costs.

• Net profit attributable to owners rose 41.5% YoY to ¥12.4 billion, with basic EPS at ¥243.98.

• Comprehensive income jumped to ¥20,988 million from ¥1,854 million a year earlier, reflecting improved financial asset valuations and currency translation gains.

Financial highlights

• Business profit increased 32.2% YoY to ¥3.0 billion, supported by asset sales.

• Gross profit was ¥50.8 billion, down 0.6% YoY, but margin improved.

• Cash and cash equivalents rose to ¥38,838 million, up ¥15,419 million from March 2025.

• Equity attributable to owners of parent increased to ¥200,540 million, with a ratio of 71.0%.

• Cash flow from operating activities was ¥8,328 million, and investing activities generated ¥23,701 million, mainly from property sales.

Outlook and guidance

• Full-year revenue forecast revised to ¥173.8 billion, nearly flat YoY.

• Full-year business profit forecast revised to a loss of ¥1.5 billion, reflecting weaker-than-expected growth strategies in Japan and the impact of the Bravissimo warehouse fire overseas.

• Operating profit is projected at ¥20.2 billion, up 514.4% YoY.

• Net profit for the year projected at ¥12.2 billion, up 69% YoY, factoring in asset sales and insurance income; basic EPS forecast at ¥239.69.

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