Wacoal Holdings (3591) Q4 2025 earnings summary

Executive summary

• FY2025 revenue was ¥173.9 billion, down 7.1% year-over-year, mainly due to weak domestic sales, sluggish overseas performance, and store closures in Japan.

• Operating profit improved to ¥3.33 billion from a loss last year, driven by gains on asset/property sales.

• Net profit attributable to owners was ¥6.99 billion, a significant turnaround from an ¥8.63 billion loss in FY2024, aided by deferred tax assets from subsidiary reorganization.

• Major initiatives included supply chain reforms, domestic production base consolidation, subsidiary share transfers, and the acquisition of Bravissimo Group in the UK.

Financial highlights

• Consolidated revenue declined by ¥13.3 billion year-over-year; gross profit margin improved to 56.0%.

• SG&A expenses remained flat, but the SG&A ratio worsened due to lower sales.

• Business profit dropped by ¥6.9 billion year-over-year, with losses in domestic and Peach John segments.

• Operating profit rose by ¥12.8 billion year-over-year, mainly from asset/property sales.

• Cash and cash equivalents at year-end were ¥23,419 million, down ¥10,128 million from last year.

Outlook and guidance

• FY2026 revenue is forecast at ¥187.5 billion (+7.8% YoY), with business profit of ¥4.7 billion and operating profit of ¥22.8 billion (+585.1% YoY).

• Net profit attributable to owners is projected at ¥14.87 billion (+112.8% YoY); EPS forecast is ¥287.85.

• Growth expected from EC expansion, European acquisitions, and recovery in China; US and China projected to break even.

• Dividend forecast remains at ¥100 per share.

• Key risks include U.S. tariff policy, raw material cost inflation, and global economic uncertainty.