FY2025 First Quarter Business
Results Presentation
August 7, 2024
1. FY2025 1Q Financial Overview
2
Executive Summary for FY2025 1Q (Apr-Jun)
Revenue
46.5 billion yen
＜YoY＞-¥2.3billion（-4.8%）
＜Planning difference＞-¥0.9billion（-2.0%）
EC has been strong for each company, but the number of customers visiting physical stores has been lower than expected and sluggish
- Domestic sales of "Synchro Bra Top" increased, but sales of bra items were sluggish
- Adjustment of deliveries to optimize in-store inventories as part of structural reforms
- Impact of IO's withdrawal from the business in the U.S.: Approx. 6 million dollars (IO's sales in 1Q FY2024)
Business Profit
1.6 billion yen
＜YoY＞-¥0.8billion（-34.2%）
＜Planning difference＞-¥0.3billion（-17.8%）
Despite efforts to control SG&A expenses, business profit fell short of plan due to decreased revenue and higher cost of sales ratio
- Gross profit ratio was lower than both the previous year and the plan, due to the impact of decreased revenue and increased raw material price
- Gross profit ratio 56.6% (YoY and vs the plan -0.5pt)
- SGA ratio 53.2% (YoY +1.0pt and vs the plan +0.1pt)
Operating Profit
3.2 billion yen
＜YoY＞+¥0.5 billion（＋17.6％）
＜Planning difference＞+¥0.3 billion（＋8.7％）
Exceeded both the previous year and the plan figure due to the gain on the sale of the Asakusabashi Building
3
Revenue and Business Profit for FY2025 1Q | （billions of yen） | |||||||||||||||||||||||||
*Wacoal Europe is calculated excluding brand amortization cost | ||||||||||||||||||||||||||
SGA ratio | FY2024 1Q | FY2025 1Q Results | ||||||||||||||||||||||||
Revenue | YoY | Planning | Gross Profit ratio | FY2024 1Q | FY2025 1Q Results | ratio | ratio | change | ||||||||||||||||||
difference | ratio | ratio | change | |||||||||||||||||||||||
Wacoal | 56.1% | 56.3% | + 0.2pt | |||||||||||||||||||||||
Wacoal | - 1.54 | - 0.01 | Wacoal | 57.5% | 56.6% | - 0.9pt | ||||||||||||||||||||
Peach John Domestic only | 55.6% | 59.1% | ＋ 3.5pt | |||||||||||||||||||||||
business(Japan) | ||||||||||||||||||||||||||
Peach John Domestic only | 62.8% | 59.0% | - 3.8pt | |||||||||||||||||||||||
Wacoal | - 0.09 | - 0.26 | Wacoal International Corp. | 43.0% | 40.0% | - 3.0pt | ||||||||||||||||||||
business(Overseas) | ||||||||||||||||||||||||||
Wacoal International Corp. | (U.S.) | |||||||||||||||||||||||||
51.5% | 52.6% | ＋ 1.1pt | ||||||||||||||||||||||||
(U.S.) | ||||||||||||||||||||||||||
Peach John business | - 0.21 | - 0.29 | Wacoal Europe Ltd. | 42.8% | 44.8% | ＋ 2.0pt | ||||||||||||||||||||
Wacoal Europe Ltd. | 56.1% | 57.5% | + 1.4pt | |||||||||||||||||||||||
Other businesses | - 0.49 | - 0.38 | ||||||||||||||||||||||||
Wacoal China Co., Ltd. | 68.2% | 71.2% | + 3.0pt | |||||||||||||||||||||||
Wacoal China Co., Ltd. | 68.6% | 67.8% | - 0.8pt | |||||||||||||||||||||||
Business Loss | YoY | Planning | ||||||||||||||||||||||||
difference | ||||||||||||||||||||||||||
Wacoal | -0.75 | -0.03 | ||||||||||||||||||||||||
business(Japan) | ||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Wacoal | ＋0.19 | -0.28 | ||||||||||||||||||||||||
business(Overseas) | ||||||||||||||||||||||||||
20.2 | ||||||||||||||||||||||||||
Sales Profit ratio | Peach John | - 0.16 | - 0.09 | |||||||||||||||||||||||
YoY | SGA ratio | |||||||||||||||||||||||||
business | ||||||||||||||||||||||||||
-0.8（-3.6％） | 56.6% | |||||||||||||||||||||||||
53.2％ | ||||||||||||||||||||||||||
Planning difference | Other businesses | -0.09 | ＋0.06 | |||||||||||||||||||||||
46.5 | -0.2（-0.8％） | （YoY-0.5pt） | （YoY +1.0pt） | |||||||||||||||||||||||
（Planning difference -0.5pt） | （Planning difference ＋0.1pt） | |||||||||||||||||||||||||
YoY | ||||||||||||||||||||||||||
-2.3 | Business Profit ratio | |||||||||||||||||||||||||
（-4.8％） | 26.3 | SG&A | 3.4％ | |||||||||||||||||||||||
Planning difference | 24.7 | （YoY -1.5pt） | ||||||||||||||||||||||||
-0.9 | YoY | （Planning difference -0.6pt） | ||||||||||||||||||||||||
（-2.0％） | -1.6 | |||||||||||||||||||||||||
YoY | YoY | |||||||||||||||||||||||||
（-5.7％） | ||||||||||||||||||||||||||
-0.8（-3.0％） | -0.8（-34.2％） | |||||||||||||||||||||||||
Planning difference | Planning difference | Planning difference | ||||||||||||||||||||||||
-0.8 | -0.4（-1.7％） | -0.3（-17.8%） | ||||||||||||||||||||||||
（-2.9％） | ||||||||||||||||||||||||||
1.6 | ||||||||||||||||||||||||||
Revenue | Gross profit | Business Profit |
4
FY2025 1Q Profit impact items
- Operating Profit： Increased due to gains on the sale of Asakusabashi Building
（billions of yen）
Gain on sale of Asakusabashi Building, etc.
Profit and loss from | Income | |
equity method | ||
Finance income | investments | tax expenses |
0.4 | ||
and costs | 1.3 |
YoY | YoY | ||
＋0.02 | |||
Other income | 0.7 | ＋0.1 | |
Planning | |||
and expenses | difference | Planning | |
±0.0 | difference | ||
YoY | +0.05 | ||
-0.2 |
Non-controlling
interests
-0.02
YoY
1.6
YoY | |
＋1.3 | 3.2 |
Planning | |
difference | YoY |
+0.6 | |
＋0.5 | |
（＋17.6％） | |
1.6 | Planning |
difference | |
YoY | ＋0.3 |
-0.8 | （＋8.7％) |
（-34.2％）
Planning
difference
-0.3
（-17.8％）
Planning
difference
-0.1
Dividend income and decrease in foreign exchange gains, etc.
4.3 | |
YoY | |
＋0.3 | |
（＋6.6％） | 3.0 |
Planning | |
difference | YoY |
＋0.1 | +0.1 |
（＋2.8％） | （+4.6％） |
Planning
difference
＋0.07
（＋2.3％）
-0.06
Planning
difference
+0.03
3.0
YoY +0.2
（+6.8％）
Planning
difference
＋0.04
（＋1.3％）
Business Profit | Operating Profit | Profit before tax | Profit |
Profit Attributable
to Owners of Parent
5
(Reference) FY2025 1Q Increase/Decrease in Revenue (YoY and vs the plan)
（billions of yen）
Decrease vs FY2024 1Q | |
About a ¥ 2.3 billion | Fell short of FY2024 1Q plan |
（ Excluding the impact of ¥ 2.2 billion | |
About a ¥ 0.9 billion | |
yen in foreign exchange, the revenue | |
decrease would be about ¥ 4.5 billion） | （Excluding the impact of ¥ 0.9 billion |
yen in foreign exchange, this would be a | |
¥ 1.8 billion underachievement） |
FY2024
1Q
results
48.8
6
Japan -1.6
Other | Other | Japan | |||||||||||||||||||
subsidiaries | subsidiaries | ||||||||||||||||||||
±0.０ | |||||||||||||||||||||
and account | and account | ||||||||||||||||||||
US | PJ | FX | |||||||||||||||||||
Adjustments | Adjustments | PJ | US | ||||||||||||||||||
-0.９ | Impacts | ||||||||||||||||||||
-0.2 | ＋0.1 | ±0.0 | -0.3 | Europe | -0.5 | ||||||||||||||||
＋0.9 | -0.2 | ||||||||||||||||||||
Nanasai | China | ||||||||||||||||||||
Nanasai | -0.2 | ||||||||||||||||||||
FX | Lecien | -0.2 | |||||||||||||||||||
Europe China | Lecien | Other | |||||||||||||||||||
Impacts | Ai | ||||||||||||||||||||
Ai | overseas | ||||||||||||||||||||
-0.２ | -0.6 | +2.2 | -0.4 | ||||||||||||||||||
-0.5 | Corporations | ||||||||||||||||||||
IO Inc.-0.8 | -0.7 | FY2025 | |||||||||||||||||||
Wacoal America -0.5 | |||||||||||||||||||||
1Q | |||||||||||||||||||||
Other | |||||||||||||||||||||
Nanasai-0.6 | results | ||||||||||||||||||||
overseas | Nanasai-0.5 | ||||||||||||||||||||
Physical Stores-0.5 | Corporations | *Nanasai will be excluded | 46.5 | *Nanasai will be excluded | |||||||||||||||||
from the scope of | from the scope of | ||||||||||||||||||||
EC-0.1 | consolidation from 2Q due | consolidation from 2Q due | Wacoal was | ||||||||||||||||||
to share transfer. | to share transfer. | ||||||||||||||||||||
at planned level | |||||||||||||||||||||
Wacoal brand -0.9 | Wacoal Hong Kong -0.2 | ||||||||||||||||||||
Wing brand -0.7 | |||||||||||||||||||||
A/G-Tech-0.2 | |||||||||||||||||||||
Synchro Bra Top, etc.+0.2 | |||||||||||||||||||||
Overseas segment closing | |||||||||||||||||||||
adjustment difference |
FY2025
1Q
plan
47.4
(Reference) FY2025 1Q Increase/Decrease in Business profit (YoY and vs the plan)
（billions of yen）
Decrease vs FY2024 1Q | Fell short of FY2025 1Q plan |
About a ¥ 0.8 billion | |
About a ¥ 0.3 billion | |
Japan | US | PJ | Europe | |||||||||||
FX | ＋0.1 | |||||||||||||
-0.3 | Europe | |||||||||||||
+0.2 | Impacts | -0.2 | Nanasai | FX | ||||||||||
-0.1China | ＋0.2 | Lecien | China | US | Japan | |||||||||
-0.1 | Other | Ai | Impacts | +0.3 | ||||||||||
＋0.1 | -0.3 | -0.1 | ||||||||||||
overseas | Nanasai | +0.03 | ||||||||||||
Corporations | Lecien | |||||||||||||
-0.1 | Ai | PJ | Other | |||||||||||
Wacoal America -0.1 | -0.1 | -0.1 | overseas | |||||||||||
FY2024 | Corporations | |||||||||||||
IO Inc.＋0.3 | Other | Other | -0.05 | |||||||||||
1Q | ||||||||||||||
results | subsidiaries | subsidiaries | ||||||||||||
SG&A expenses increased -0.3 | ||||||||||||||
2.4 | and account | and account | FY2025 | |||||||||||
Adjustments | Adjustments | |||||||||||||
1Q | ||||||||||||||
Gross profit -1.2 | -0.4 | FY2025 | -0.3 | plan | ||||||||||
SG&A expenses reduced +0.9 | ||||||||||||||
1Q | ||||||||||||||
results | Gross profit -0.1 | 1.9 | ||||||||||||
･ Elimination of unrealized | 1.6 | Elimination of unrealized | SG&A expenses reduced ＋0.4 | |||||||||||
intergroup profits | ||||||||||||||
intergroup profits, etc. | ||||||||||||||
･ Consolidated adjustment | ||||||||||||||
difference in retirement | ||||||||||||||
benefit expenses |
7
FY2025 1Q - Consolidated Statement of Financial Position | （billions of yen） | |||||
End of | Ratio | FY2025 1Q Ratio | Change | |||
FY2024 | ||||||
Cash and cash equivalents | 33.5 | 28.8 | -4.7 | ➀ Increase in inventories due to yen | ||||||||
Trade and other receivables | 22.1 | 20.5 | -1.6 | |||||||||
Inventories | 50.0 | ➀ | 50.6 | ＋0.6 | depreciation （exchange impact +1.4） | |||||||
Other | 6.5 | 11.9 | ＋5.3 | Inventories | ||||||||
Total current assets | 112.1 | 38.1 | 111.8 | 38.4 | -0.4 | |||||||
Inventory turnover | ||||||||||||
Property, plant and equipment and Intangible assets | 57.4 | 55.6 | -1.8 | *Calculated by cost of sales ÷ inventory at end of June | ||||||||
Goodwill | 11.8 | 12.6 | ＋0.8 | 0.46 | ||||||||
0.42 | ||||||||||||
② | 0.39 | 0.40 | ||||||||||
Other financial assets | 54.5 | 52.7 | -1.8 | 0.37 | ||||||||
Other | 58.2 | 58.3 | ＋0.2 | 44.1 | 0.29 | 44.6 | 48.3 | 50.6 | ||||
Total non-current assets | 181.9 | 61.9 | 179.2 | 61.6 | -2.6 | 55.9 | ||||||
Total assets | 294.0 | 100.0 | 291.1 | 100.0 | -3.0 | 45.2 | ||||||
End of | Ratio | FY2025 1Q | Ratio | Change | ||||||||
FY2024 | ||||||||||||
Trade and other payables | 17.4 | 14.8 | -2.6 | |||||||||
Borrowings | 9.1 | 9.5 | ＋0.4 | End of June | End of June | End of June | End of June | End of June | End of June | |||
Lease liabilities | 11.5 | 11.0 | -0.5 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |||
Deferred income taxes | 16.9 | 17.0 | ＋0.1 | |||||||||
Other | 24.0 | 19.9 | -4.1 | ② Cross-shareholdings decreased due to the | ||||||||
Total liabilities | 78.9 | 26.9 | 72.2 | 24.8 | -6.7 | decline in market price | ||||||
Total equity attributable to owners of parent | 211.8 | 215.5 | ＋3.7 | |||||||||
Noncontrolling interests | 3.3 | 3.3 | ±0.0 | |||||||||
Total equity | 215.1 | 73.1 | 218.8 | 75.2 | ＋3.7 | |||||||
8 | Total liabilities and equity | 294.0 | 100.0 | 291.1 | 100.0 | -3.0 |
FY2025 1Q -Consolidated Statement of Cash Flows
FY2023 1Q | FY2024 1Q | Change | ||||
Profit | 2.9 | 3.0 | ＋0.1 | |||
Depreciation | 3.0 | 3.0 | ＋0.0 | |||
Impairment charges | ||||||
Decrease (increase) in working capital component items | ||||||
Decrease (increase) in trade and other receivables | ➀ | 0.8 | 1.0 | ＋0.2 | ||
➀ | ||||||
Increase in inventories | -0.4 | 0.5 | ＋0.9 | |||
Decrease in trade and other payables | -2.6 | -2.3 | +0.3 | |||
Decrease in retirement benefit asset or liability | ② | -1.7 | -0.4 | +1.3 | ||
Other | ② | -1.0 | -5.9 | -4.9 | ||
Net cash provided by operating activities | +1.0 | -1.1 | -2.1 | |||
Purchase of property, plant and equipment and | -1.0 | -0.8 | +0.2 | |||
Intangible assets | ||||||
Proceeds from sale of property, plant and equipment | 0.0 | 1.7 | +1.7 | |||
Other | -0.8 | -0.5 | +0.3 | |||
Net cash used in investing activities | -1.8 | 0.4 | +2.2 | |||
Net increase in short-term bank loans | 0.7 | 0.1 | -0.6 | |||
Repayments of lease obligations | -1.4 | -1.4 | +0.0 | |||
Payments for purchase of treasury stock | 0.０ | -0.1 | -0.1 | |||
Dividends paid to owners of parent | -2.3 | -2.8 | -0.4 | |||
Other | -0.1 | -0.1 | +0.0 | |||
9 | ||||||
Net cash used in financing activities | -3.1 | -4.2 | -1.1 | |||
（billions of yen）
➀ ✓ Inventories decreased, mainly in overseas businesses
(Cash flow statement shows increase/decrease in inventories without taking into account the effect of exchange rates)
② ✓ Increase in income taxes paid, etc.
FY2024 1Q(Apr-Jun): Business Conditions at Major Subsidiaries（Japan）
Note: The graph shows the monthly figures before the adjustments in settling accounts.（ Including internal sales, Japan only for Peach John ）
Wacoal vs FY2024 1Q | Peach John vs FY2024 1Q | |
120
104
100 | 94 |
94 | 93 |
80 | 86 |
76
60
Apr. | May | Jun. |
Japan FY2025 1Q revenue trend
Revenue：vs FY2024 1Q -8％ | () Excluding the impact of change |
in revenue recognition |
- Underwear, centered on the "Synchro Bra Top," performed well, but bras, a mainstay item, were sluggish
- While the physical store channel is struggling, EC grew both in own EC and third- party EC
Revenue by channel (% change)
Department store: -4％ Retail store: -5％
Mass retailer: Wacoal -５％ Wing -６％ Own EC: +9%
Peach John FY2025 1Q revenue trend
Revenue：vs FY2024 1Q -9％ | () Excluding the impact of change |
in revenue recognition |
- While third-party EC performed well, both our own EC and retail stores struggled
- The effect of promotion of famous celebrities was lower than expected
Revenue by channel (% change)
Own EC: -13％ Third-party EC: +2％
Retail store: - 9％
10 | "Wing" WEB site |