Workman (7564) Q4 2026 earnings summary

Executive summary

• Achieved record-high profit and double-digit revenue growth for the second consecutive year, driven by strong sales of recovery wear and effective climate-responsive merchandising.

• Total operating revenue for FY ended March 31, 2026 rose 17.5% year-over-year to ¥160,852 million, with operating profit up 21.7% to ¥29,676 million and net income up 22.1% to ¥20,618 million.

• Sales at all chain stores rose 14.3% year-over-year, with directly managed stores up 41.7% and franchise stores up 11.4%.

• Recovery wear and mass market products significantly contributed to sales growth, with notable popularity among the general public.

Financial highlights

• Ordinary profit for FY 2026 was ¥30,567 million, up 22.7% year-over-year.

• EPS reached ¥252.64, up from ¥206.99 the previous year.

• Return on equity improved to 14.3% from 13.0% year-over-year.

• Gross profit margin at franchise stores improved to 36.9% (+0.7 points YoY).

• Total assets grew to ¥185,257 million from ¥162,231 million, and net assets to ¥153,456 million from ¥135,302 million.

Outlook and guidance

• FY ending March 31, 2027 forecast: total operating revenue of ¥183,376 million (+14.0% YoY), operating profit of ¥32,112 million (+8.2% YoY), and net income of ¥22,329 million (+8.3% YoY).

• Net sales at all chain stores projected to rise 13.7% year-over-year to ¥237,970 million.

• Strategic investments in mass market product policy expected to drive revenue, with moderate profit growth due to increased SG&A and upfront costs.

• Dividend per share to be maintained at ¥89 for FY 3/2027.