Wacoal Holdings (3591) Q3 2025 earnings summary

Executive summary

• Revenue for FY2025 3Q was ¥133.5 billion, down 5.6% year-over-year, reflecting weak sales in core markets and challenging retail conditions, mainly due to strategic store withdrawals in Japan and sluggish overseas performance.

• Business profit dropped 70.9% year-over-year to ¥1.4 billion, but exceeded the revised plan by 260.8% due to cost controls, while operating profit surged to ¥11.1 billion from a loss last year, driven by gains from asset sales.

• Profit attributable to owners was ¥9.1 billion, a turnaround from a ¥3.9 billion loss last year.

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

Financial highlights

• Consolidated revenue fell to ¥133.5 billion (down ¥7.9 billion YoY), with domestic business at ¥68.8 billion (down 5.2%) and overseas at ¥50.0 billion (down 0.6%).

• Business profit was ¥1.4 billion (down ¥3.5 billion YoY), with domestic business posting a loss of ¥0.3 billion.

• Operating profit reached ¥11.1 billion, up ¥13.1 billion YoY, mainly from ¥9.1 billion in gains on property sales.

• Gross profit declined 5.2% year-over-year to ¥75.4 billion.

• Basic earnings per share was ¥166.88, compared to a loss per share of ¥67.98 last year.

Outlook and guidance

• Full-year revenue is forecast at ¥181.0 billion, with business profit expected to be negative at ¥2.5 billion.

• Operating profit for the full year is projected at ¥4.8 billion, a significant improvement from the previous year.

• Profit attributable to owners of parent is projected at ¥4.5 billion, with basic EPS of ¥82.65.

• No revision to the previously announced forecast as of February 2025.