Wacoal Holdings (3591) Q4 2026 earnings summary

Executive summary

• FY2026 revenue was ¥171.5 billion, down 1.4% year-over-year, mainly due to the sale of unprofitable businesses and sluggish performance in the U.S. and China, despite contributions from the Bravissimo acquisition.

• Gross profit increased 0.8% year-over-year to ¥98.2 billion, with the margin improving by 1.3 points to 57.3% due to higher retail ratios and business restructuring.

• Operating profit surged to ¥19.9 billion, up 504.5% year-over-year, driven by gains on sales of fixed assets, notably the Shin-Kyoto Building.

• Profit attributable to owners of parent rose 81.8% year-over-year to ¥13.1 billion.

• Key initiatives included business model reforms, asset reduction, and strategic acquisitions.

Financial highlights

• Revenue: ¥171.5 billion (-1.4% YoY); Gross profit: ¥98.2 billion (+0.8% YoY); Operating profit: ¥19.9 billion (+504.5% YoY); Net profit: ¥13.1 billion (+81.8% YoY).

• SG&A expenses decreased by ¥2.2 billion year-over-year, reflecting cost controls and optimized personnel assignments.

• Free cash flow increased to ¥44.4 billion, mainly due to asset sales.

• Basic earnings per share increased to ¥261.65 from ¥133.90 year-over-year.

• Cash and cash equivalents at year-end doubled to ¥44,170 million.

Outlook and guidance

• FY2027 revenue is forecast at ¥187.6 billion (+9.4% YoY), with gross profit expected to rise to ¥108.7 billion (+10.6% YoY).

• Business profit is projected to return to positive territory at ¥0.5 billion, while operating profit is expected to decrease to ¥1.5 billion due to the absence of one-time gains.

• Net profit is forecast to drop to ¥1.8 billion, reflecting the lack of extraordinary gains.

• Annual dividend for FY2027 is planned at ¥100 per share, unchanged from FY2026.

• Strategic focus on domestic profitability, overseas expansion, and capital efficiency.