Japan Eyewear (5889) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was JPY 3.8Bn, up 32.3% year-over-year, with operating profit at JPY 1.1Bn, a 57.4% increase.

• Net income rose to JPY 0.7Bn, up 150.2% year-over-year, and gross margin improved to 78.2% of sales.

• Net profit attributable to owners of parent was JPY 0.7Bn, a 394.5% increase year-over-year.

• Six new stores opened (including two relocations) and a second direct store launched in China.

• Both Kaneko Optical and Four Nines brands saw strong sales, supported by domestic consumption recovery and increased inbound demand.

Financial highlights

• Operating profit margin increased to 31.0% from 26.0% year-over-year; EBITDA margin rose to 41.2%.

• Adjusted EBITDA for Q1 was JPY 1.6Bn, up 41.0% year-over-year, reflecting one-time IPO and M&A costs.

• Gross profit rose to JPY 3.0Bn from JPY 2.3Bn year-over-year.

• Basic earnings per share increased to JPY 30.76 from JPY 12.98 year-over-year.

• Operating cash flow increased to JPY 1.7Bn, with cash and equivalents at JPY 4.2Bn at period end.

Outlook and guidance

• FY2025 revenue guidance is JPY 14.96Bn, up 10.6% from FY2024; operating profit forecasted at JPY 4.3Bn, up 16.2%.

• Net income projected at JPY 2.68Bn, up 20.9% year-over-year; gross margin expected to remain at 77.5%.

• Plans for more than 8 new stores in Japan (including 3 relocations) and at least 1 new store in China.

• Inbound sales targeted at JPY 1.9Bn (+14% vs. FY2024); further price increases and strict cost control planned.

• Dividend per share forecasted at JPY 44, with a payout ratio target of 40%.