Japan Eyewear (5889) Q4 2026 earnings summary

Executive summary

• Revenue for FY2026/1 rose 11.8% YoY to ¥18.6 billion, with operating profit up 11.8% to ¥6.0 billion and gross margin at 78.7%.

• Net profit declined 5.3% YoY to ¥3,783 million due to a one-time increase in deferred tax assets in the prior year.

• Overseas sales were robust, accounting for 34.1% of consolidated revenue, driven by strong brand popularity in Asia.

• Store sales increased 13.0%, with 10 new stores opened and 2 closed, totaling 113 stores at year-end.

• Both Kaneko Optical and Four Nines segments achieved record sales and profits, supported by new store openings domestically and overseas.

Financial highlights

• Operating profit margin remained high at 32.0%.

• EBITDA rose 12.4% YoY to ¥7.9 billion, with an EBITDA margin of 42.2%.

• SG&A expenses increased by ¥900 million, mainly due to store expansion.

• Cash and cash equivalents decreased by ¥0.9 billion, reflecting tax payments, acquisitions, and dividends; period end balance was ¥3,054 million, down 22.3% YoY.

• ROE was 20.8%, well above the 13.26% cost of equity.

Outlook and guidance

• FY2027/1 revenue is forecast to grow 10.5% YoY to ¥20.6 billion, with operating profit up 14.2% to ¥6.8 billion and net profit up 16.3% to ¥4.4 billion.

• Plans include opening at least 5 new stores in Japan and 2 in Greater China, targeting overseas customer revenue share above 35%.

• Annual dividend for the next fiscal year is planned at ¥86 per share.

• Further price increases and strict cost control are planned, with a continued focus on global expansion and strengthening integrated production.