Japan Eyewear (5889) Q3 2026 earnings summary

Executive summary

• Revenue for the first nine months of FY2026/1 reached ¥13,422 million, up 11.0% year-over-year, with operating profit at ¥4,319 million (+10.1% YoY) and net profit at ¥2,651 million (+9.4% YoY), all marking record highs.

• Both Kaneko Optical and Four Nines brands saw strong customer support, with new store openings in Japan and overseas contributing to growth.

• Store sales grew 12.8%, and inbound sales rebounded in Q3, rising 28.7% YoY for the quarter and 18.5% YoY for the nine months.

• Inbound demand from Asian tourists temporarily declined due to earthquake rumors but has since been recovering.

• The company transitioned to the Prime Market of the Tokyo Stock Exchange in October 2025, altering shareholder composition.

Financial highlights

• EBITDA for the nine months was ¥5,724 million (+11.1% YoY), with an EBITDA margin of 42.6%.

• Gross margin improved to 79.3% (+0.4pts YoY), and operating profit margin remained high at 32.2%.

• Basic earnings per share increased to ¥109.94 from ¥101.14 a year earlier.

• Cash and cash equivalents decreased to ¥2,780 million at period-end, mainly due to tax payments, acquisition of Hands, and dividend payouts.

• SG&A expenses increased by ¥706 million (+12.6% YoY), mainly due to store expansion and higher sales.

Outlook and guidance

• Full-year revenue is forecast at ¥18,900 million (up 13.4% YoY), with operating profit of ¥6,200 million (up 16.4%) and net profit of ¥4,000 million (up 0.1%).

• Revised full-year sales profit forecast downward by ¥150 million due to Q2 inbound sales stagnation.

• Nine-month progress rates against the revised full-year plan: revenue 71.0%, operating profit 69.7%, net profit 66.3%.

• No change to the revised forecast announced in October 2025; management remains positive about achieving targets.

• The company continues to target full-year plan achievement.