Workman (7564) Q3 2025 earnings summary

Executive summary

• Q3 sales at all chain stores rose 4.8% year-over-year to 148,214 million yen, with directly managed store sales up 20.0% and franchise store sales up 3.5%.

• Operating profit was stable at 20,674 million yen, nearly unchanged from the prior year.

• Net income slightly decreased by 0.5% to 13,018 million yen compared to the same quarter last year.

• Store count reached 1,037 at end-December 2024, up 26 from March, with accelerated #WORKMAN GIRL and Plus II store openings.

• Sales of private brand (PB) products increased 5.8% year-over-year, now accounting for 68.3% of total sales.

Financial highlights

• Total operating revenue grew 1.4% year-over-year to 107,605 million yen.

• Ordinary profit for the nine months was 21,037 million yen, down 0.2% year-over-year.

• SG&A expenses rose 10.7% year-over-year, driven by higher labor, rent, and outsourcing costs.

• Gross margin benefited from improved overseas purchasing profits, despite higher loss on product valuation and increased delivery costs.

• EPS was 159.52 yen, down from 160.35 yen a year earlier.

Outlook and guidance

• Full-year guidance remains unchanged: sales at all chain stores projected at 183,980 million yen (+5.0% YoY), operating profit at 23,632 million yen (+2.1% YoY), and net income at 16,325 million yen (+2.1% YoY).

• Full-year operating revenue forecast is 138,564 million yen, up 4.5% year-over-year.

• Management plans to accelerate store openings, especially #WORKMAN GIRL and Workman Colors, and focus on exclusive product development and flexible pricing.