Japan Eyewear (5889) Q1 2026 earnings summary

Executive summary

• Achieved consecutive growth in revenue and profit, progressing smoothly against the full-year forecast.

• Revenue for the first three months ended April 30, 2025, rose 8.6% year-over-year to ¥4,191 million, with operating profit up 9.4% to ¥1,307 million and net profit up 6.3% to ¥782 million.

• Growth driven by strong store sales, new store openings, higher unit prices, and robust inbound tourist demand; Kaneko Optical and Four Nines brands performed well.

• Kaneko's strong store sales drove consolidated results; Four Nines' store sales were strong but wholesale declined.

• Kaneko Optical opened two new stores in Japan and acquired Hands Ltd. to enhance in-house production; Four Nines opened two new stores in Japan.

Financial highlights

• Revenue grew 8.6% year-over-year to approximately ¥4.2 billion; operating profit increased 9.4% to ¥1.3 billion.

• EBITDA for the quarter was ¥1,766 million, up 11.0% year-over-year.

• Gross profit margin rose 1.4 points YoY to 79.6%; operating profit margin remained high at 31.2%.

• Net profit rose 6.3% YoY to ¥782 million, despite higher income tax expense due to a new defense tax.

• Basic earnings per share rose to ¥32.46 from ¥30.76 year-over-year.

Outlook and guidance

• Q1 progress rates for revenue, operating profit, and net profit are as planned, with no concerns regarding seasonality.

• Full-year plan targets revenue of ¥19.05 billion, operating profit of ¥6.2 billion, and net profit of ¥4 billion.

• No changes to previously announced earnings or dividend forecasts; annual dividend forecast is ¥84 per share.

• Management continues to pursue M&A for non-linear growth and further expansion.