Goldwin (8111) Q2 2025 earnings summary

Executive summary

• Net sales for the first half reached a record ¥53,367 million, up 4.4% year-on-year, driven by strong inbound demand, robust performance of THE NORTH FACE, summer products, and e-commerce.

• Ordinary profit increased 8.0% year-on-year to ¥9,917 million, supported by strong performance from an equity-method affiliate in South Korea.

• Profit attributable to owners of parent rose 7.4% year-on-year to ¥7,865 million, aided by equity-method gains.

• Inbound sales ratio at directly managed stores hit 23.9% for the second quarter, with notable growth from Chinese tourists and strong sales in Fukuoka, Osaka, and Okinawa.

• EC sales continued double-digit growth year-over-year, and the self-managed sales ratio reached 56%, aligning with medium-term targets.

Financial highlights

• Second quarter net sales: ¥53,367 million (104.4% year-over-year); net income: ¥7,865 million (107.4% year-over-year).

• Gross profit margin for the first half was 49.9%, down 0.9 points year-on-year due to discounts and absence of special demand.

• Inventory balance increased to ¥22,896 million (111.9% year-over-year), mainly due to early arrival of fall/winter items.

• Selling, general and administrative expenses increased 7.7% year-on-year to ¥21,424 million, mainly from higher personnel costs and one-time J-ESOP costs.

• Cash and cash equivalents at period-end were ¥35,082 million, down ¥6,928 million from March 31, 2024.

Outlook and guidance

• Full-year forecast for FY2025 remains unchanged: net sales ¥133,200 million (105.0% year-over-year), net income ¥21,000 million (86.5% year-over-year), with profits expected to decrease due to one-time expenses.

• Gross profit margin outlook for FY25.3 remains at 52.5%, unchanged from initial forecast.

• Company will monitor market and performance trends, with possible forecast revision if necessary.