Japan Eyewear (5889) Q4 2025 earnings summary

Executive summary

• Revenue for FY2025 increased 23.2% year-over-year to ¥16.6 billion, with operating profit up 44.0% to ¥5.33 billion and net profit up 69.1% to ¥3.99 billion, driven by strong store sales, inbound demand, and higher unit prices.

• Adjusted EBITDA reached ¥7.0 billion, up over 32% year-over-year, reflecting robust core profitability.

• Kaneko Optical and Four Nines brands saw over 16% same store sales growth and aggressive overseas expansion, especially in China and Hong Kong.

• Growth was supported by new store openings and full recovery of inbound tourist demand.

Financial highlights

• Gross margin improved to 78.9% of sales, up 1.4 points year-over-year.

• SG&A expenses increased 17.0% year-over-year to ¥7.8 billion, mainly from personnel and rent.

• Q4 revenue grew 19.0% year-over-year to ¥4.57 billion, with Q4 net profit up 92.4% to ¥1.57 billion.

• Operating cash flow for FY2025 was ¥6.7 billion, with cash and equivalents at ¥3.93 billion at year-end.

• Dividend per share for FY2025 was ¥66, with a payout ratio of 39.7%.

Outlook and guidance

• FY2026 revenue is projected to rise 14.3% to ¥19.05 billion, with operating profit expected to reach ¥6.2 billion and net profit guidance at ¥4.0 billion.

• EBITDA forecast for FY2026 is ¥8.0 billion (+14.2%).

• Dividend per share planned to increase to ¥84, targeting a 40% payout ratio.

• Plans include opening more than 5 new stores in Japan and 3+ in Greater China, with a focus on global expansion and strict cost control.