Workman (7564) Q1 2026 earnings summary

Executive summary

• Achieved record-high profit and revenue growth in Q1 FY2026, reversing a three-quarter decline, with both sales and profit exceeding plan by a significant margin.

• Operating revenue rose 12.2% year-over-year to ¥41,560 million for the quarter ended June 30, 2025.

• Net income increased 29.0% year-over-year to ¥5,817 million.

• Operating profit grew 28.4% year-over-year to ¥9,028 million.

• Net sales at all chain stores climbed 14.2% year-over-year to ¥56,947 million.

Financial highlights

• EPS grew from 55.27 to 71.28 yen year-over-year.

• Gross margin improved as cost of sales rose less than revenue, supporting higher profits.

• Total assets stood at ¥161,308 million as of June 30, 2025, with an equity ratio of 83.4%.

• Operating profit margin increased, reflecting strong sales and cost control.

• Gross profit gains driven by franchise store revenue (+¥1,134 million), self-operated stores (+¥705 million), and overseas purchases (+¥1,290 million).

Outlook and guidance

• FY2026 full-year plan targets sales at all chain stores of ¥192,970 million (+5.4% YoY), operating profit of ¥26,005 million (+6.6% YoY), and net income of ¥18,100 million (+7.2% YoY).

• Full-year operating revenue forecast at ¥147,152 million, up 7.5% year-over-year.

• Plans to open 48 new stores, aiming for a 1,500-store network, with 100–200 store renovations per year.

• Focus on reinforcing workwear, evolving Colors stores, and expanding corporate franchising.

• No revision to previously released forecasts.