Curves Holdings (7085): FY2025 Results Summary — Record Sales, Profit, and Chain-Wide Sales

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

Curves Holdings Co., Ltd. (TSE Prime, 7085), the holding company of the “30-minute Women-only Wellness Fitness Club Curves” franchise chain, reported all-time record high sales, profit, and chain-wide sales for the fiscal year ended August 31, 2025 (FY 8/2025). Consolidated sales rose to 37,566 million yen (105.9% year on year) and operating profit to 6,342 million yen (116.2% year on year). Total Curves members reached 863K (net growth of 46K year on year) and the club count reached 1,996 clubs (net growth of 18 clubs). Note: the company’s fiscal year ends August 31; the materials label the fiscal year ended August 31, 2025 as “FY 8/2025” (FY2025), and labels in this article follow the materials.

Consolidated Results (Full-Year Actual)

Sales were 37,566 million yen, up 105.9% year on year, and reached 98.9% of the full-year forecast of 38,000 million yen. Operating profit was 6,342 million yen (116.2% year on year; 100.7% of the 6,300 million yen forecast), ordinary profit was 6,481 million yen (118.4% year on year; 103.7% of forecast), and net profit was 4,303 million yen (120.6% year on year; 107.6% of forecast). EBITDA was 8,586 million yen (111.6% year on year). The operating profit ratio improved from 15.4% to 16.9%. According to the materials, gross profit rose 903 million yen year on year on higher royalty fee income attributed to membership growth, while the gross margin on merchandise sales declined due to higher raw materials costs, offset by an increase in subscriptions.

Item (million yen)	FY 8/2025 (Actual)	FY 8/2024 (Actual)	Year on Year
Sales	37,566	35,465	105.9%
Operating profit	6,342	5,458	116.2%
(Operating profit ratio)	16.9%	15.4%	–
Ordinary profit	6,481	5,472	118.4%
Net profit	4,303	3,566	120.6%
EBITDA	8,586	7,692	111.6%

The company also states that it exceeded all four of its financial commitments in FY 8/2025: operating profit CAGR of +16.2%, EBITDA CAGR of +11.6%, and free cash flow CAGR of +23.0% against targets of 10% or higher for each, and ROIC of 15.4% against a commitment of 12% or higher (target: 15%). Chain-wide sales — total sales of the chain including all franchisees from membership fee/dues income and merchandise sales income — reached a record 85.60 billion yen (105.7% year on year), comprising membership fee/dues income of 62.64 billion yen (106.3%) and merchandise sales of 22.95 billion yen (104.0%).

Segment Results (Breakdown of Sales)

Domestic sales were 36,993 million yen (105.8% year on year), of which base income (ongoing income associated with the numbers of clubs and members) was 35,963 million yen (105.2%) and spot income (one-time income from franchise sales and franchise agreement renewals) was 1,030 million yen (133.2%). Overseas sales — the global franchise business and European franchiser operations by Curves International, Inc. and Curves Europe B.V. — were 572 million yen (115.4%). By region, operating profit was 8,404 million yen for Domestic (112.5% year on year), a loss of 351 million yen for Overseas (versus a loss of 304 million yen in the previous year), and adjustments of -1,710 million yen, which include amortization of goodwill and trademark rights.

Item (million yen)	FY 8/2025 (Actual)	FY 8/2024 (Actual)	Year on Year
Sales	37,566	35,465	105.9%
Domestic	36,993	34,969	105.8%
— Spot	1,030	773	133.2%
— Base	35,963	34,195	105.2%
—— Royalty, etc.	7,388	6,946	106.4%
—— Franchisees, other	2,020	1,878	107.6%
—— Merchandise	23,080	22,210	103.9%
—— Corporate clubs	3,296	2,994	110.1%
—— Other	177	165	107.0%
Overseas	572	496	115.4%

Operationally, the average monthly attrition rate for FY 8/2025 was 2.07%, which the company describes as a historically low level, and Curves ranked No.1 in the fitness club industry in the 2025 JCSI Japanese Customer Satisfaction Index survey for the 11th consecutive year. Merchandise sales of 23.0 billion yen marked a new record high, with the number of product subscribers at fiscal year-end also reaching a record high. Men’s Curves reached 25 clubs at the end of the fiscal year, and the new healthcare facility brand (Physical Movement Recovery Center Pint-UP, labeled “New brand X” in the materials) reached 37 clubs. In Europe (8 countries including Spain, Italy and the UK), 124 clubs were open as of the end of June 2025.

FY 8/2026 Forecast

For the fiscal year ending August 31, 2026, the company forecasts sales of 41.30 billion yen (109.9% year on year), operating profit of 7.30 billion yen (115.1%), ordinary profit of 7.25 billion yen (111.9%), and net profit of 4.70 billion yen (109.2%). Women’s Curves membership at period-end is forecast at 900–910K members, and the group club count at 2,124 clubs (Women’s Curves 2,007, Men’s Curves 45, New brand X 72). For the first quarter, the company projects sales growth of about 6.2% year on year but an operating profit decline of around 5%, citing an expected decline in gross profit margins for protein due to sharply rising raw ingredient prices and the weak yen, as well as higher costs from expanded investments in human capital and system investment; it expects both sales and operating profit to increase year on year from the second quarter onward.

Item	FY 8/2026 Forecast	FY 8/2025 Actual (Reference)	Difference	Year on Year
Sales	41.30B yen	37.56B yen	+3.73B yen	109.9%
Operating profit	7.30B yen	6.34B yen	+950M yen	115.1%
Ordinary profit	7.25B yen	6.48B yen	+760M yen	111.9%
Net profit	4.70B yen	4.30B yen	+390M yen	109.2%
Women’s Curves members (end of period)	900-910K members	863K members	+37-47K	104.3-105.4%
Club count (end of period)	2,124 clubs	2,058 clubs	+66 clubs	103.2%
— Women’s Curves	2,007 clubs	1,996 clubs	+11 clubs	100.6%
— Men’s Curves	45 clubs	25 clubs	+20 clubs	180.0%
— New brand X	72 clubs	37 clubs	+35 clubs	194.6%

Shareholder Returns

The annual dividend for FY 8/2025 was 17.00 yen per share (interim 8.00 yen, year-end 9.00 yen), up 2.00 yen from the previous year, with a consolidated payout ratio of 36.4% on earnings per share of 46.75 yen. The materials state that dividends have increased for the fifth consecutive fiscal year since the company’s listing, reaching a new record high. For FY 8/2026, the company forecasts an annual dividend of 25.00 yen (interim 10.00 yen, year-end 10.00 yen, plus a commemorative year-end dividend of 5.00 yen to mark the 20th anniversary of the Curves chain’s founding), for a consolidated payout ratio of 49.0% on forecast earnings per share of 51.05 yen. The company’s basic policy is to achieve a consolidated payout ratio of 50%, while maintaining sufficient reserves needed for future operations and the optimization of financial strength. As a shareholder incentive, a Quo Card worth 500 yen is given to all shareholders owning more than 100 shares (1 unit) as registered on the shareholders’ list as of August 31, 2025.

Item	FY 8/2024	FY 8/2025	FY 8/2026 (Forecast)
Interim dividend	6.00 yen	8.00 yen	10.00 yen
Year-end dividend	9.00 yen	9.00 yen	10.00 yen
Special dividend (year-end)	–	–	5.00 yen
Annual dividend	15.00 yen	17.00 yen	25.00 yen
Consolidated payout ratio	38.7%	36.4%	49.0%

Medium-Term Vision 2030/2035

The materials also present the Curves Group Medium-term Vision 2030/2035. As financial commitments for the 5 years from FY 8/2025, the company targets a CAGR of at least 10% for operating profit, EBITDA, and free cash flow, and aims to maintain ROIC of 12% or higher, aiming for 15%. The group vision (total for all brands) calls for the club count to grow from 2,058 clubs (FY 8/2025 results) to 2,600 clubs in FY 8/2030 and 3,150 clubs (commitment) to 3,500 clubs (target) in FY 8/2035, with membership growing from 877K to 1,200K and then 1,400K–1,500K. Chain-wide sales are envisioned to grow from 86.5 billion yen to 130.0 billion yen in FY 8/2030 and 180.0–200.0 billion yen in FY 8/2035. Group consolidated sales are envisioned at 56.0 billion yen in FY 8/2030 and 78.0–85.0 billion yen in FY 8/2035, with operating profit of 10.3 billion yen and 18.0–20.0 billion yen respectively, and the operating profit ratio rising from 17% to 18% and then 23%–24%. Growth is to be achieved mainly through existing Women’s Curves, together with expansion of the Men’s Curves and Pint-UP businesses.

From September 2025, monthly membership fees for the 30-minute Women-only Wellness Fitness Club Curves and Men’s Curves were revised upward by 300 yen (excluding tax) for new members (from April 2026 for existing members), due to cost inflation and rising wage costs; the materials state this will improve franchisees’ gross profit and employee benefits.

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.