Intermestic Inc. (262A): FY2025 Results Summary — Sales Up 11.8% on Sunglasses Strength and Record Store Openings

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Intermestic Inc., the operator of the Zoff eyewear chain, reported consolidated net sales of 50,151 million yen for FY2025/12 (fiscal year ended December 31, 2025), up 11.8% year on year, with operating profit of 5,990 million yen (+19.5%) and net profit attributable to owners of the parent of 4,119 million yen (+17.2%). The gross profit margin improved 1.5pt year on year to 76.7%, supported by the previous year’s price revisions and a higher purchase rate of paid lenses. The company acquired Visionary Holdings (VH) on October 1, 2025, but because the deemed acquisition date system method was applied with December 31, 2025 as the deemed acquisition date, the VH business is not included in the FY25 P&L (M&A-related costs such as advisory fees are included); the balance sheet covers both the Zoff and VH businesses.

Note: The figures below follow the corrected version of the presentation materials. On March 24, 2026 the company disclosed “(Correction) Notice Regarding Partial Corrections to the ‘Full-Year Financial Results Presentation Materials for the Fiscal Year Ended December 31, 2025′”, stating that certain items in the “FY2025/12 Full Year Financial Results” disclosed on February 13, 2026 contained errors and that the corrections would be reflected in the PDF posted on its IR website.

Consolidated Results (Full-Year Actual)

Sales increased 11.8% year on year, driven by strong growth in sunglasses. SG&A expenses rose 13.2% as depreciation increased on new store openings and advertising and personnel expenses also rose, but the ratio to sales remained at a similar level year on year on sales growth. Against the company’s own forecast (the earnings forecast following the upward revision disclosed on November 25, 2025), net sales came in 0.6% below plan while operating profit was 0.1% above and net profit 1.7% above.

Item (Unit: Millions of yen / %)	FY2024/12	FY2025/12 Forecast	FY2025/12	YoY %	Vs Forecast %
Net Sales	44,845	50,450	50,151	+11.8	▲0.6
Gross Profit	33,707	ー	38,470	+14.1	ー
Gross Profit (% of Sales)	75.2	ー	76.7	ー	ー
SG&A Expenses	28,695	ー	32,479	+13.2	ー
Operating Profit	5,012	5,986	5,990	+19.5	+0.1
Ordinary Profit	4,878	5,977	5,979	+22.6	+0.0
Net Profit Attributable to Owners of the Parent	3,515	4,051	4,119	+17.2	+1.7
EBITDA	5,903	ー	7,161	+21.3	ー
Dividend per Share	40.20yen	44.00yen	44.00yen	0yen	ー

Key financial indicators and KPIs for FY2025/12 were: consolidated net sales of 50.15 billion yen (+11.8% YoY), gross profit margin ratio of 76.7% (+1.5pt), operating profit margin of 11.9% (+0.7pt), 332 Zoff stores in Japan as of 2025/12 (+25 stores net increase from the previous year-end), Zoff same-store sales growth of +8.2%, sunglasses sales of 6.0 billion yen (+26.6%), EC sales of 3.7 billion yen (+14.5%), and 28 new Zoff store openings in Japan during full year 2025. Same-store sales growth rate, sunglasses sales and EC sales figures are based on managerial accounting.

Segment Results

Domestic operations grew 12.0% on store expansion; the company notes that due to adjustments under the revenue recognition standard, the year-on-year figure for domestic net sales is lower than those of stores and EC. In the EC business, sales of collaboration products drove growth. Figures show only sales to external customers.

Segment (Unit: Millions of yen / %)	FY24	FY25	YoY
Domestic Net Sales	43,977	49,253	+12.0
Stores	41,230	46,290	+12.3
EC	3,235	3,703	+14.5
Overseas Business	868	898	+3.5

SG&A Breakdown

Although advertising expenses increased due to marketing initiatives, depreciation expenses rose on store openings and renovations, and personnel expenses grew as investments in human capital were made, the SG&A ratio remained at a similar level due to sales growth.

Item (Unit: Millions of yen / %)	FY2024/12	% of Sales	FY2025/12	% of Sales	YoY %
SG&A Expenses	28,695	64.0	32,479	64.8	+13.2
Labor Costs	13,089	29.2	14,466	28.8	+10.5
Store Rent	6,322	14.1	7,047	14.1	+11.5
Advertising Expenses	1,901	4.2	2,523	5.0	+32.7
Depreciation and Amortization	815	1.8	1,096	2.2	+34.5

Store Network and the Visionary Holdings Acquisition

The total number of Zoff stores at the end of FY25 was 332: 28 new stores were opened and 3 were closed, a net increase of 25 stores and the highest number of new store openings ever. On October 1, 2025 the company acquired all shares of Visionary Holdings (VH), an eyeglass and contact lens chain with over 50 years of history that operates 299 stores nationwide (including 230 roadside and street-front stores), 1,565 employees, and sales of 28.2 billion yen (FY2025/4 consolidated). Including VH, the Group operates a total of 631 stores. On the performance trends the company presented for VH, net sales were 28,186 million yen in FY2025/4 with operating profit of 1,852 million yen (operating profit margin 6.6%) and EBITDA of 2,610 million yen (9.3%); these figures are those recognized by Intermestic during the process and have not been audited by its auditing firm.

Next-Year Forecast

The FY26 earnings forecast is net sales of 85,800 million yen (+71.1% YoY), operating profit of 7,502 million yen (+25.2%) and EBITDA of 11,078 million yen (+54.7%), reflecting the addition of VH’s revenue. The addition of the contact lens business is expected to lower the overall gross profit margin, while the consolidation of the more SG&A-efficient contact lens business is expected to improve the SG&A ratio. Goodwill is estimated at approximately 23.8 billion yen, and the amortization amount (1,293 million yen, 1.5% of sales) has been calculated based on the amortization period currently under discussion with the auditing firm; the company notes these figures are provisional and subject to change.

Item (Unit: Millions of yen / %)	FY2025/12	FY2026/12 Forecast	% of Sales	YoY %
Net Sales	50,151	85,800	100.0	+71.1
Gross Profit	38,470	60,576	70.6	+57.5
SG&A Expenses	32,479	53,073	61.9	+63.4
Operating Profit	5,990	7,502	8.7	+25.2
Ordinary Profit	5,979	7,100	8.3	+18.7
Net Profit Attributable to Owners of the Parent	4,119	4,752	5.5	+15.4
EBITDA	7,161	11,078	12.9	+54.7
Earnings per Share	ー	155.32	ー	+15.4
Dividend per Share	44.00yen	51.00yen	ー	+7.00yen

By business, the Zoff business is expected to deliver 11.7% top-line growth while VH is projected to contribute 2,659 million yen in EBITDA.

Item (Unit: Millions of yen / %)	Zoff FY2025/12	Zoff FY2026/12 Forecast	Zoff YoY %	VH FY2026/12 Forecast	Group Consolidated FY2026/12 Forecast	Group YoY %
Net Sales	50,151	56,016	+11.7	29,783	85,800	+71.1
Gross Profit	38,470	43,019	+11.8	17,556	60,576	+57.5
SG&A Expenses	32,479	36,291	+11.7	15,488	53,073	+63.4
Operating Profit	5,990	6,728	+12.3	2,067	7,502	+25.2
Ordinary Profit	5,979	6,484	+8.5	1,908	7,100	+18.7
Net Profit Attributable to Owners of the Parent	4,119	4,402	+6.9	1,467	4,752	+15.4
EBITDA	7,161	8,418	+17.6	2,659	11,078	+54.7

On store and volume assumptions, the Group expects a net increase of 27 stores, with 34 new openings and 7 closures, bringing the total number of stores at the end of the period to 658 (including VH’s 299 stores). Domestic unit sales are assumed at 498 (ten thousands) versus 433 in FY25, up 15.1%, with all-store sales growth for Zoff of +10.9% and same-store sales growth of +4.5% versus +12.3% and +8.2% respectively in FY25.

Shareholder Returns

The dividend per share for FY2025/12 was 44.00 yen, increased as disclosed in the upward revision on November 25, 2025, versus 40.20 yen in FY2024/12. For FY2026/12 the company forecasts a dividend per share of 51.00 yen with a payout ratio of 32.8%. In its cash flow allocation approach the company states that it will implement stable shareholder returns with a target payout ratio of 30-35%, while allocating cash to growth investment in existing businesses, active investment in human capital, funds for M&A, repayment of debt-financed funds, and cash reserves for contingencies.

Balance Sheet and Cash Flow

Total assets rose 28,110 million yen to 62,952 million yen, with intangible assets up 24,214 million yen to 24,917 million yen and cash and cash equivalents down 9,984 million yen to 10,060 million yen following the M&A. Short-term borrowings increased 15,100 million yen to 18,000 million yen in connection with the M&A, and total net assets rose 2,908 million yen to 25,966 million yen, with the equity ratio declining due to the use of leverage.

Item (Unit: Millions of yen)	FY2024/12	FY2025/12	YoY
Operating Cash Flow	6,359	5,220	▲1,138
Investing Cash Flow	▲1,671	▲28,933	▲27,262
Payments for Acquisition of Subsidiaries Resulting in Changes in Scope of Consolidation	–	▲16,168	▲16,168
Financing Cash Flow	9,057	13,716	+4,658
Net Increase (decrease) in Short-term Borrowings	–	15,100	+15,100
Dividends Paid	▲896	▲1,229	▲333

Growth Strategy and Topics

The Group’s growth strategy is built on strengthening existing businesses (growth in same-store sales, creating and expanding the sunglasses market, growth of the EC business, and improving profitability), developing new business models to acquire customer segments unreachable through existing models such as Zolita, and M&A to establish a leading position within the industry and execute roll-up M&A. Through the VH transaction the company made a full-scale entry into the approximately 340 billion yen contact lens market, giving it access to a market worth approximately 1 trillion yen combined with the domestic eyewear retail market. The company raised approximately 14 billion yen through its IPO, of which 5 billion yen was allocated to debt repayment and growth investments, and executed an M&A with an enterprise value of approximately 27 billion yen, allocating approximately 9 billion yen from the raised funds.

On topics, Zolita TOKYO, a specialty shop for Lolita fashion eyewear, opened on Takeshita Street in Harajuku in December 2025. FY26 marketing initiatives include filming support for a TV Tokyo Network drama series and a collaboration with the idol group FRUITS ZIPPER releasing collaboration eyewear and music tracks. Galileo, a new-material product launched in October 2024, was selected for Nikkei MJ’s 2025 First Half Hit Product Rankings.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.