United Arrows Ltd. · TSE:7606
United Arrows — FY2025/3 Earnings Presentation
57 slides from United Arrows's earnings presentation, May 8, 2025
Slide 1: For the Fiscal Year Ended March 31, 2025
For the Fiscal Year Ended March 31, 2025 2025.05.08 UNITED ARROWS LTD.
Slide 2: Agenda
P03– |1 Overview of FY2025/3 Business Results P21– | 2 FY2026/3 Business Plan P27– | 3 Progress in Sustainability Initiatives P29– | 4 Review of FY2025/3 and Outlook for FY2026/3 from Matsuzaki, President and CEO P51– |5 Reference Materials
Slide 3: Cautionary Statement
Cautionary Statement Earnings forecasts and descriptions other than objective facts contained in this document are based on decisions made by UNITED ARROWS LTD. in light of information obtainable as of the date of this report and, therefore, include risks and uncertainties. Actual earnings may diffe
Slide 4: Overview of FY2025/3 Business Results
Overview of FY2025/3 Business Results Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 5: Financial Highlights
Overview of FY2025/3 Business Results Financial Highlights Consolidated Sales and gross profit exceeded the previous year, although slightly below the revised forecast. SG&A expenses were slightly controlled from the revised forecast, and operating income and ordinary income surpassed the revised fo
Slide 6: Consolidated Sales and Gross Margin
Overview of FY2025/3 Business Results Consolidated Sales Consolidated Gross Margin ¥150.9 YoY 52.1% YoY pt difference billion 112.4% +0.4pt (Millions of yen) 150,910 130,135 134,269 52.1% 121,712 118,384 51.6% 51.7% 49.9% 45.2% FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 *
Slide 7: Consolidated Operating Income and Net Income
Overview of FY2025/3 Business Results Consolidated Operating Income Net Income Attributable to Owners of Parent ¥7.9 ¥4.2 YoY YoY billion 118.5% billion 87.8% (Millions of yen) (Millions of yen) 7,984 6,362 6,740 4,341 4,876 4,282 1,683 732 (6,613) (7,197) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY21/3 F
Slide 8: Consolidated P/L
Overview of FY2025/3 Business Results Consolidated P/L (Millions of yen) Change/pt FY24/3 FY25/3 difference YoY Sales 134,269 150,910 16,641 112.4% Gross profit 69,462 78,629 9,167 113.2% vs. sales 51.7% 52.1% 0.4pt － SGA expenses 62,722 70,645 7,923 112.6% vs. sales 46.7% 46.8% 0.1pt － Operating in
Slide 9: Consolidated P/L 4Q (3 Months)
Overview of FY2025/3 Business Results Consolidated P/L 4Q (3 Months) (Millions of yen) FY24/3 FY25/3 Change/pt YoY 4Q 4Q difference Sales 34,564 37,921 3,356 109.7% Gross profit 16,883 18,722 1,839 110.9% vs. sales 48.8% 49.4% 0.5pt － SGA expenses 15,960 18,773 2,813 117.6% vs. sales 46.2% 49.5% 3.3
Slide 10: Consolidated Gross Margin
Overview of FY2025/3 Business Results Consolidated Gross Margin Consolidated, non-consolidated and Taiwanese subsidiary exceeded previous year’s results, while COEN CO., LTD. declined from the previous year due to inventory write-downs. Non-consolidated business unit continued to improve from 2Q. Yo
Slide 11: Consolidated Gross Margin 4Q (3 Months)
Overview of FY2025/3 Business Results Consolidated Gross Margin 4Q (3 Months) Consolidated, non-consolidated and Taiwanese subsidiary exceeded previous year’s results, while COEN CO., LTD. declined from the previous year due to special valuation loss on inventory in 4Q. FY25/3 YoY 4Q pt difference C
Slide 12: Consolidated SGA Expenses
Overview of FY2025/3 Business Results Consolidated SGA Expenses Although SGA expenses increased from the previous year, the SGA ratio was held to a 0.1 pt increase. This figure includes increases in advertising and promotion expenses, personnel expenses due to increased number of employees, salary b
Slide 13: Consolidated SGA Expenses 4Q (3 Months)
Overview of FY2025/3 Business Results Consolidated SGA Expenses 4Q (3 Months) (Millions of yen) FY24/3 FY25/3 Change/pt YoY 4Q 4Q difference Total SGA expenses 15,960 18,773 2,813 117.6% vs. sales 46.2% 49.5% 3.3pt - Advertising expenses 971 1,233 262 127.0% vs. sales 2.8% 3.3% 0.4pt - Personnel exp
Slide 14: Consolidated B/S
Overview of FY2025/3 Business Results Consolidated B/S (Millions of yen) As of Mar. 31, As of Mar. 31, vs. previous term-end 2024 2025 Change Total Assets 60,204 70,142 9,937 116.5% Composition ratio 100.0% 100.0% Current Assets 40,372 44,816 4,444 111.0% Composition ratio 67.1% 63.9% Noncurrent Ass
Slide 15: Consolidated C/F
Overview of FY2025/3 Business Results Consolidated C/F (Millions of yen) FY24/3 FY25/3 Major breakdown of the results for the term Cash flows from operating activities (sub-total) 7,577 8,074 Profit before income taxes 7,082 Depreciation 1,322 Cash flows from operating activities 6,341 7,097 Increas
Slide 16: Non-consolidated Sales and Gross Margin
Overview of FY2025/3 Business Results Non-consolidated Sales Non-consolidated Gross Margin Non-consolidated Existing Stores YoY ¥139.3 YoY 52.0% +0.5pt 111.2% YoY pt difference billion 112.7% Sales 109.2% Number of (Millions of yen) purchasing 139,355 customers 118,434 123,685 52.0% 101,929 107,482
Slide 17: Non-consolidated Sales by Channel
Overview of FY2025/3 Business Results Non-consolidated Sales by Channel (Millions of yen) Existing stores YoY Change/pt FY24/3 FY25/3 YoY Number of Avg. spend per difference Sales customers customer Retail + Online 111.2% 109.2% 101.8% Non-consolidated sales 123,685 139,355 15,669 112.7% Retail 109.
Slide 18: Non-consolidated Sales by Business
Overview of FY2025/3 Business Results Non-consolidated Sales by Business (Millions of yen) FY24/3 FY25/3 Change YoY Total business unit sales 104,709 118,098 13,388 112.8% Trend-conscious Market 70,039 77,211 7,172 110.2% Basic Trend-conscious Market 34,670 40,886 6,216 117.9% Existing store sales Y
Slide 19: Group Company Results
Overview of FY2025/3 Business Results Group Company Results COEN CO., LTD. Feb. – Jan. (Millions of yen) Saw increase in sales and decrease in profit • Sales ¥10.4 billion, 109.0% YoY • Sales exceeded the previous year due to recovery mainly in physical stores owing to MD revisions • Profit decrease
Slide 20: Opening and Closing of Stores
Overview of FY2025/3 Business Results Opening and Closing of Stores The number of stores at the term end was 322, with 26 stores opened and 5 stores closed (number of stores) FY24/3 Opened Closed FY25/3 Group Total 301 26 5 322 UNITED ARROWS LTD. 221 20 3 238 COEN CO., LTD. 71 5 2 74 UNITED ARROWS T
Slide 21: FY2025/3 Major Indicators
Overview of FY2025/3 Business Results FY2025/3 Major Indicators Annual dividend Payout ratio DOE 63.00 yen 40.6 % 4.8 % ROE Inventory turnover No. of stores 11.8 % 6.3 times 322 stores YoY YoY YoY -2.4 pt +0.2 times +21 stores 20
Slide 22: FY2026/3 Business Plan
FY2026/3 Business Plan Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 23: Consolidated Business Plan
FY2026/3 Business Plan Consolidated Business Plan Profit is expected to decrease until 9 months period due to increase in fixed costs such as personnel, advertising, depreciation, etc. Profit is expected to increase in 3Q (3 months) and 4Q (3 months), aiming to increase profit for the full year. (Mi
Slide 24: Gross Margin Plan
FY2026/3 Business Plan Gross Margin Plan FY26/3 FY26/3 FY26/3 YoY YoY YoY 1H 2H Full year Consolidated 53.0% 0.4pt 52.6% 1.0pt 52.8% 0.7pt UNITED ARROWS LTD. 52.4% 0.0pt 52.4% 0.8pt 52.4% 0.4pt Total business unit - 0.1pt - 0.7pt - 0.5pt Outlet, etc. - - 1.5pt - - 0.7pt - - 1.0pt COEN CO., LTD. - 3.
Slide 25: Non-consolidated Sales Plan
FY2026/3 Business Plan Non-consolidated Sales Plan (Millions of yen) FY26/3 FY26/3 FY26/3 1H 2H Full year YoY YoY YoY Non-consolidated sales 68,407 109.1% 84,288 110.0% 152,696 109.6% Retail + Online Existing Stores - 107.7% - 107.9% - 107.8% Retail Existing Stores - 104.5% - 104.7% - 104.6% Online
Slide 26: Store Opening and Closing Plan
FY2026/3 Business Plan Store Opening and Closing Plan 25
Slide 27: Change in Dividend Policy
FY2026/3 Business Plan Change in Dividend Policy Revised the dividend payout ratio standard to 40% or more and introduced progressive dividends • With the performance improvement from the COVID-19 pandemic, we expect to have cash surplus while making certain investments to achieve profit growth. • s
Slide 28: Progress in Sustainability Initiatives
Progress in Sustainability Initiatives Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 29: CDP Ratings and Renewable Energy Use
Progress in Sustainability Initiatives CDP Rated B for Climate Change and A- Percentage of Sites Using Renewable for Water Security Energy Sources at 24.6 • CDP evaluated the transparency of our efforts and • As major commercial facilities, etc., have been shifting information disclosure, and gave u
Slide 30: Review of FY2025/3 and Outlook for FY2026/3
Review of FY2025/3 and Outlook for FY2026/3 from Matsuzaki, President and CEO Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 31: FY25/3 Results and Aim for High Growth in FY26/3
Review of FY2025/3 and Outlook for FY2026/3 FY25/3 Sales at Revised Forecast Level. Operating Income: 109.4% of the Initial Forecast, 103.7% of the Revised Forecast Aim for High Growth in FY26 / 3 and Achieve the Medium-Term Management Plan Sales Operating profit (million yen) (million yen) 109.8% 1
Slide 32: Significant Growth in Existing Businesses by Adapting Our Strengths
Review of FY2025/3 and Outlook for FY2026/3 Significant Growth in Existing Businesses by Adapting Our Strengths to Changes in Society Changes in the society Our strength Customers trust us for our lineup of real clothes Trend shift to elegant Following the trend of quiet luxury, the trend Traditiona
Slide 33: Our Continuous Strength Is Reflected in Various Factors
Review of FY2025/3 and Outlook for FY2026/3 Our Continuous Strength Is Reflected in Various Factors Responding to changes in social trends by leveraging the Stable same-store sales on the assumption of climate change strengths of traditional product line • Existing store sales were stable due to the
Slide 34: Ample Room for Growth in Our Existing Business
Review of FY2025/3 and Outlook for FY2026/3 Ample Room for Growth in Our Existing Business by Leveraging Our Strengths Aiming for Further Growth by Embarking on New Businesses in Response to Market Changes FY25 Net Sales, YoY High-end to trend-conscious market 77.2 billion yen (110.2%) Basic trend-c
Slide 35: Major Initiatives in FY2025/3
Major Initiatives in FY2025/3
Slide 36: Evaluation of Progress in Medium-Term Management Plan
Major Initiatives in FY2025/3 Evaluation of Progress in Medium-Term Management Plan Assessme Key strategy Strategy Details Progress nt Growth and expansion of the Progress above initial plan mainly in existing 1. UA CREATIVITY Strategy existing businesses Grow the top line ◎ businesses Improve gross
Slide 37: UA CREATIVITY Strategy: Grow the Top Line
Major Initiatives in FY2025/3 1. UA CREATIVITY Strategy [Growth and Expansion of the Existing Businesses] Grow the Top Line Assessment ◎ Conversion of Sales Activities to DX Increase Loyalty by Opening New Stores and Renovating Existing • The number of styling posts increased significantly Ones • St
Slide 38: UA CREATIVITY Strategy: Improve Gross Margin
Major Initiatives in FY2025/3 1. UA CREATIVITY Strategy [Growth and Expansion of the Existing Businesses] Improve Gross Margin Assessment ○ • Consolidated gross margin in FY25 increased to 52.1% (+ 0.4 pt YoY), the highest level since FY15 • Continued improvement in non-consolidated business unit du
Slide 39: UA CREATIVITY Strategy: Strengthening of Brand Appeal
Major Initiatives in FY2025/3 1. UA CREATIVITY Strategy [Strengthening of Brand Appeal] Expand Investment in Human Capital Assessment 〇 Rebranding of the Corporate Brand Assessment 〇 • Expansion of educational opportunities • Aimed at expressing a new aspect of UNITED ARROWS and renewing the corpora
Slide 40: UA CREATIVITY Strategy: Re-grow of COEN
Major Initiatives in FY2025/3 1. UA CREATIVITY Strategy [Re-grow of COEN] Assessment × The Top Priority for an Early Recovery Is to Improve the Gross Margin Initiatives and summary for the FY25/3 YoY comparison of COEN CO., LTD. Developing attractive products, but challenges in hit product developme
Slide 41: UA MULTI Strategy
Major Initiatives in FY2025/3 2. UA MULTI Strategy [Business Development for Business Expansion] Assessment 〇 Start of New Business Acquisition of BOOT BLACK JAPAN Co., Ltd. • ATTISESSION and conte store openings begin • Acquires all shares of BOOT BLACK JAPAN Co., Ltd. which operates shoe polishing
Slide 42: UA DIGITAL Strategy: UA Club 1 Year of Operation
Major Initiatives in FY2025/3 3. UA DIGITAL Strategy [Promoting OMO] Assessment 〇 UA Club 1 Year of Operation (as of March 31, 2025) • Active members exceeded 1.5 million, and all indicators exceeded the previous year • OMO initiatives have significantly increased the number of cross-users Number of
Slide 43: UA Online Official App Renewal
Major Initiatives in FY2025/3 3. UA DIGITAL Strategy [Promoting OMO] Assessment 〇 UA Online Official App Renewal • Oct. 2024 Significant changes to user interface, improved design for easy sensory operation • Jan. 2025 Added in-store mode, personalized home screen Sales via app App ratings 8.62 bill
Slide 44: UA DIGITAL Strategy: Optimizing the Supply Chain
Major Initiatives in FY2025/3 3. UA DIGITAL Strategy [Optimizing the Supply Chain] Assessment 〇 Development of UA3.0 (New Product Management Reorganize Distribution Centers and Improve System) Operational Efficiency • Completed development of UA3.0 and started operation in April 2025 • Continued con
Slide 45: Major Initiatives in FY2026/3
Major Initiatives in FY2026/3
Slide 46: Accelerate Efforts in the Final Year of the Mid-term Plan
Major Initiatives in FY2026/3 Accelerate Efforts to Date in the Final Year of the Mid-term Plan Strategy Strategy Strateg y Growth and expansion of the existing Business development to expand Promoting OMO businesses business • UA Club App Utilization • Continue to actively procure inventory • New b
Slide 47: Launch of New Brand NICE WEATHER
Major Initiatives in FY2026/3 2. UA MULTI Strategy [Business Development for Business Expansion] Launch of New Brand "NICE WEATHER" to Capture the Next Generation • Exclusive rights to sell and license the Korean lifestyle brand "NICE WEATHER" in Japan • Hankyu Umeda main store" and e-commerce site
Slide 48: Start of NICE WEATHER
Major Initiatives in FY2026/3 2. UA MULTI Strategy [Business Development for Business Expansion] New Brand to Capture Next Generation Start of "NICE WEATHER" • Products offered, core price range Men's and women's wear: 8,000 to 15,000 yen Lifestyle goods: 2,000 to 7,000 yen Own e-commerce site "NICE
Slide 49: Opened TABAYA United Arrows in April 2025
Major Initiatives in FY2026/3 2. UA MULTI Strategy [Business Development for Business Expansion] Opened TABAYA United Arrows in April 2025 • Under the statement "The highest quality United Arrows ever made", "Genuine items from all over the world" are selected with the aesthetic eye of United Arrows
Slide 50: Cross-border EC UA Global Online Launched
Major Initiatives in FY2026/3 2. UA MULTI Strategy [Business Development for Business Expansion] Cross-border EC "UA Global Online" Launched • Plan to be launched in autumn 2025 • Developed as our own cross-border e-commerce site for inbound customers and overseas customers interested in Japanese fa
Slide 51: Three Key Strategies
Major Initiatives in FY2026/3 Three Key Strategies 50
Slide 52: Reference Materials
Reference Materials Financial Results Briefing for FY2025/03 UNITED ARROWS LTD.
Slide 53: UNITED ARROWS LTD. FY2025/3 Store Opening and Closing
Reference Materials UNITED ARROWS LTD. FY2025/3 Store Opening and Closing (number of stores) FY24/3 Opened Closed FY25/3 UNITED ARROWS LTD. Total 221 20 3 238 Trend-conscious Market Total 103 10 1 112 UNITED ARROWS General Merchandise Store 14 2 0 16 UNITED ARROWS 25 0 1 24 BEAUTY&YOUTH 36 2 0 38 Ot
Slide 54: What is Supply Chain Optimization?
Reference Materials The UA DIGITAL Strategy: Optimize the Supply Chain What is Supply Chain Optimization? Digitalize Everything from Product Orders to Customer Purchases and Improve Efficiency • Reduce purchase and import costs by visualizing the flow from product procurement to warehouse delivery •
Slide 55: Visualize the Flow from Product Procurement to Warehouse Delivery
Reference Materials The UA DIGITAL Strategy: Optimize the Supply Chain Visualize the Flow from Product Procurement to Warehouse Delivery Integrated management of production-related information* of each product • Building optimum production background and selecting MD business partners Material price
Slide 56: Improving the Accuracy of Inventory Distribution
Reference Materials The UA DIGITAL Strategy: Optimize the Supply Chain Improving the Accuracy of Inventory Distribution Reduced product transfers after store 25% of the products transferred to another store or distribution returned to distribution warehouse Reduce the product transfer Approximately
Slide 57: Other Expected Effects
Reference Materials The UA DIGITAL Strategy: Optimize the Supply Chain Other Expected Effects • Enhance security Ensure security support and minimize risks from cyber attacks • Develop an environment for business domain expansion Ensure extension potential with a view to future business expansion •