Japan Eyewear (5889) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 rose 29.6% year-over-year to ¥8.3 billion, with operating profit up 153.5% to ¥2.7 billion and net income up 162.5% to ¥1.68 billion.

• Both Kaneko Optical and Four Nines brands saw robust performance, supported by new store openings, price increases, and strong inbound tourist demand.

• The acquisition of Taiho Co., Ltd. is expected to strengthen manufacturing capabilities and enhance group value.

• The company maintained its full-year earnings forecast, expecting revenue of ¥14.96 billion and net profit of ¥2.68 billion.

• Price increases for both Kaneko and 999.9 brands contributed to higher unit prices and profitability.

Financial highlights

• Consolidated revenue reached ¥8.3 billion, up from ¥6.4 billion year-over-year; operating profit was ¥2.75 billion, up from ¥1.79 billion.

• Adjusted EBITDA for the period was ¥3.6 billion, a 41.2% increase year-over-year.

• Basic earnings per share increased to ¥70.04 from ¥51.82 year-over-year.

• Gross margin improved to 78.7%, with gross profit at ¥6,534 million on revenue of ¥8,300 million.

• Cash and cash equivalents at period end increased to ¥4.03 billion.

Outlook and guidance

• Full-year revenue guidance remains at ¥14.96 billion, with operating profit guidance at ¥4.3 billion and net profit at ¥2.68 billion.

• Six-month results represent 55.5% of full-year revenue and 64.1% of operating profit guidance.

• Plans include opening more than 8 new stores in Japan and at least 1 in China, targeting 10% annual revenue growth.

• No changes have been made to the previously announced earnings forecast.

• Sales to inbound tourists expected to reach ¥1.9 billion (+14% vs. FY2024), with continued price increases and strict cost control.