Goldwin (8111) Q1 2025 earnings summary

Executive summary

• Net sales rose 6.3% year-over-year to ¥24.6 billion, driven by inbound tourism and strong brand performance, especially in the fashion segment and brands like THE NORTH FACE and Speedo.

• Net income increased 9.4% year-over-year to ¥3.66 billion, aided by equity earnings from South Korea's YOUNGONE OUTDOOR Corporation.

• Operating profit declined 18.8% year-over-year to ¥1.84 billion, impacted by a 12.2% rise in SG&A expenses, including a one-time J-ESOP cost.

• Cost reductions, including lower headquarters relocation expenses, contributed to profit outperformance versus initial forecasts.

• Ordinary profit rose 2.1% year-over-year to ¥4.26 billion, supported by strong equity-method profit from YOUNGONE OUTDOOR.

Financial highlights

• Gross profit margin was 50.5%, nearly flat year-over-year; gross profit increased 6.2% to ¥12.43 billion.

• Comprehensive income surged 45.4% year-over-year to ¥4.75 billion.

• Earnings per share rose to ¥81.47 from ¥74.30 year-over-year.

• Total assets decreased to ¥134.8 billion from ¥141.0 billion at the previous fiscal year-end.

• Equity ratio improved to 73.3% from 70.9% at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast remains at ¥133.2 billion (+5% year-over-year), with operating income expected to decline to ¥18.1 billion due to temporary expenses.

• Profit attributable to owners of parent is forecast at ¥21.0 billion (down 13.5% year-over-year).

• Gross profit margin for FY25.3 is projected at 52.5%, with price increases planned for autumn/winter to support margins.

• No revision to full-year guidance; autumn/winter sales, which peak in Q3 and later, are key to annual performance.

• Interim dividend forecast is ¥40 per share; full-year dividend forecast is ¥163 per share.