Workman (7564) Q4 2025 earnings summary

Executive summary

• Achieved revenue and profit growth for the first time in three quarters, with sales at all chain stores up 4.5% year-over-year to 183,132 million yen.

• Operating revenue for FY ended March 31, 2025 rose 3.2% year-over-year to 136,933 million yen, with net income up 5.7% to 16,892 million yen.

• Operating profit increased 5.4% year-over-year to 24,394 million yen, and ordinary profit rose 5.2% to 24,904 million yen.

• Store network expanded to 1,051 locations, with 40 net new stores, focusing on Colors and WORKMAN Plus formats.

• Product mix shifted toward general and women's categories, with strong sales in undergarments, casualwear, and women's uniforms.

Financial highlights

• Net income rose 5.7% year-over-year to 16,892 million yen; EPS increased to 206.99 yen.

• Operating profit grew 5.4% to 24,394 million yen; operating margin approximately 13.3%.

• Cash flows from operating activities were 24,793 million yen, up from 15,228 million yen the previous year.

• Return on equity was 13.0%, and the equity ratio stood at 83.4% as of March 31, 2025.

• SG&A expenses increased 11.1% due to higher labor, rent, and logistics costs, with the SG&A ratio rising to 14.6%.

Outlook and guidance

• FY3/26 guidance targets 5.4% sales growth to 192,970 million yen and 7.2% net income growth to 18,100 million yen.

• Operating revenue for FY3/26 is forecast to rise 7.5% to 147,152 million yen.

• 48 new store openings planned, aiming for a 1,500-store network by 2030; focus on Colors and urban expansion.

• SG&A expense ratio expected to rise to 15.8% due to labor and renovation investments.

• Dividend per share to increase to 73 yen, with a payout ratio of 32.9%.