Wacoal Holdings (3591) Q3 2026 earnings summary

Executive summary

• Revenue for FY2026 3Q was ¥130.3 billion, down 2.4% year-over-year, mainly due to the sale of unprofitable businesses and stagnant sales in women's innerwear.

• Gross profit margin improved by 1.1pt to 57.6% despite a slight decline in gross profit, driven by structural reforms and higher retail ratio post-Bravissimo acquisition.

• Business profit rose 110.1% YoY to ¥3.1 billion, with domestic operations returning to profitability and Peach John contributing positively.

• Operating profit more than doubled to ¥22.7 billion, aided by gains from fixed asset sales, especially the Shin-Kyoto Building.

• Profit attributable to owners of parent increased 51.1% to ¥13.8 billion, with comprehensive income up 250.4% to ¥30.8 billion.

Financial highlights

• Revenue: ¥130.3 billion (–2.4% YoY); Gross profit: ¥75.1 billion (–0.5% YoY); Gross margin: 57.6% (+1.1pt YoY).

• Business profit: ¥3.1 billion (+110.1% YoY); Operating profit: ¥22.7 billion (+104.0% YoY).

• Profit attributable to owners: ¥13.8 billion (+51.1% YoY); Basic EPS rose to ¥273.59 from ¥167.63 YoY.

• SG&A expenses decreased by ¥2 billion YoY due to cost controls.

• Cash and cash equivalents increased by ¥13.2 billion to ¥36.6 billion.

Outlook and guidance

• Full-year revenue forecast at ¥173.8 billion (–0.1% YoY); operating profit projected at ¥20.2 billion (+514.4% YoY).

• Net profit attributable to owners expected to reach ¥12.2 billion (+69.0% YoY); annual dividend forecast remains at ¥100 per share.

• No revision to the previously announced forecast.

• Domestic business expected to remain stable; overseas recovery anticipated as inventory and operational issues are resolved.