Wacoal Holdings (3591): FY2025 Results Summary — Operating Profit Surges on Asset Sales as Business Loss Narrows

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

Wacoal Holdings Corp. reported consolidated revenue of 171,510 million yen for the fiscal year ended March 31, 2026, down 1.4% year on year, as the sale of unprofitable businesses and sluggish revenue in the U.S. and China offset steady performance at Wacoal Corp. and Peach John and the revenue contribution from Bravissimo, acquired in the previous fiscal year. Despite the lower revenue, gross profit rose 0.8% to 98,231 million yen and the gross profit margin improved by 1.3pt to 57.3%. The business loss narrowed sharply to -461 million yen from -3,437 million yen, and operating profit jumped 504.5% to 19,877 million yen, helped by gains on sales of fixed assets including the Shin-Kyoto Building. Profit attributable to owners of parent increased 81.8% to 13,124 million yen.

Note: Wacoal Holdings labels the fiscal year ended March 31, 2026 as “FY2026” and the fiscal year ending March 31, 2027 as “FY2027” in its presentation materials; this article follows the company’s labels.

Consolidated Results (Full-Year Actual)

SG&A expenses declined 2.2% year on year to 98,692 million yen, as advertising expenses decreased and personnel assignments were optimized in the U.S. and China. Operating profit was lifted by other income of 24,080 million yen, which included a gain on sales of fixed assets (the Shin-Kyoto Building, dormitories and company housing, etc.) and insurance claim income from the fire at a Bravissimo logistics warehouse. The company notes that results exceeded the plan mainly due to the reduced impact of tariffs and the control of costs. Share of loss of equity-method investments was -1,514 million yen, reflecting impairment of investments in Thai Wacoal and House of Roses.

Item (Millions of yen)	FY2026	FY2025	Change	% Change
Revenue	171,510	173,896	-2,386	-1.4%
Gross Profit	98,231	97,444	+787	+0.8%
SG&A expenses	98,692	100,881	-2,189	-2.2%
Business Profit	-461	-3,437	+2,976	—
Operating Profit	19,877	3,288	+16,589	+504.5%
Profit Attributable to Owners of Parent	13,124	7,218	+5,906	+81.8%

Figures for FY2025 have been retrospectively revised following the finalization of accounting treatment for a business combination in FY2026.

Segment Results

In the Wacoal Business (Domestic), revenue was 87,723 million yen (-0.1% year on year) and the business loss narrowed to -1,228 million yen from -4,777 million yen. Structural reforms at Wacoal Corp. improved business profit by approx. ¥2.0 billion year on year and approx. ¥6.0 billion from FY2023, and Wacoal Corp. moved into the black on a non-consolidated basis, though the segment as a whole remained in a business loss due to other subsidiaries’ deficits and differences in accounting standards. In the Wacoal Business (Overseas), revenue rose 1.8% to 68,468 million yen on the Bravissimo acquisition and deeper cultivation of continental Europe, but business profit fell 64.3% to 528 million yen as the U.S. and China struggled; combined revenue in the U.S. and China declined by around ¥3.6 billion. The Peach John Business grew revenue 6.4% to 11,144 million yen and returned to a business profit of 130 million yen, with sales increasing across all channels.

Segment (Millions of yen)	Revenue FY2026	Revenue FY2025	Business Profit FY2026	Business Profit FY2025
Wacoal Business (Domestic)	87,723	87,828	-1,228	-4,777
Wacoal Business (Overseas)	68,468	67,237	528	1,480
Peach John Business	11,144	10,469	130	-194
Other	4,175	8,362	109	54

FY2027 Forecast

For the fiscal year ending March 31, 2027 (FY2027), the company plans revenue of 187,600 million yen (+9.4%), with both domestic and overseas major subsidiaries projecting higher revenue — in Japan from growth in CW-X and EC, and overseas from deeper cultivation of continental Europe and the acquisition of Glamorise in the U.S. Business profit is expected to move into the black at 500 million yen, helped by the absence of the impact of the Bravissimo fire and profit from the Glamorise acquisition. Operating profit is planned at 1,500 million yen (-92.5%), reflecting the absence of the prior year’s gain on sales of fixed assets, and profit attributable to owners of parent is planned at 1,800 million yen (-86.3%). From FY2027, reportable segments are being reclassified based on supply chain management to drive ROIC management on a segment-by-segment basis.

Item (Millions of yen)	FY2027 Plan	FY2026 (Actual)	Change	% Change
Revenue	187,600	171,510	+16,090	+9.4%
Gross Profit	108,670	98,231	+10,439	+10.6%
Business Profit	500	-461	+961	—
Operating Profit	1,500	19,877	-18,377	-92.5%
Profit Attributable to Owners of Parent	1,800	13,124	-11,324	-86.3%

Shareholder Returns

The year-end dividend for FY2026 was decided at ¥50 per share; combined with the interim dividend of ¥50, the annual dividend is ¥100, unchanged from FY2024 and FY2025. For FY2027, the company forecasts an annual dividend of ¥100, similar to FY2026 (¥50 per share for both interim and year-end dividends). Under the Revised Medium-Term Management Plan (FY2024 to FY2026), cumulative dividend returns reached approx. 15.7 billion yen against a target of 15.0 billion yen, and cumulative purchases of treasury stock reached approx. 39.5 billion yen against a target of 55.0 billion yen.

Dividend per share	FY2026	FY2027 (Forecast)
Interim	¥50	¥50
Year-End	¥50	¥50
Annual	¥100	¥100

Medium-Term Plan / Topics

Progress on the Revised Medium-Term Management Plan’s financial strategy included cumulative streamlining of real estate holdings of approx. 46.6 billion yen (target: 50.0 billion yen), including the sale of the Shin-Kyoto Building, and cumulative reductions of strategic shareholdings of approx. 38.2 billion yen (target: 30.0 billion yen). ROIC improved to 5.9% in FY2026 from 3% in FY2025 (target: 6%~7%), and ROE improved to 6.5% from 4% (target: 7%).

Among key topics: the company acquired Glamorise Foundations, Inc., a New York-based innerwear company whose strengths are in D2C, EC and the full-figure (plus-size) segment — EC sales account for 98% of Glamorise’s total sales, and 100% of its products are plus-size products. In the domestic business, a new Transformation Office directly controlled by the president was established, with 12 subcommittees, to lead management and structural reforms. On tariffs, United States tariffs on brassieres from the Dominican Republic, a major Wacoal America production location, changed from 10% to 0% at the end of February 2026, and the negative impact of tariffs is expected to be reduced in and after FY2027. The next Medium-Term Management Plan, covering FY2027 to FY2029, is scheduled for announcement in June 2026.

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.