Onward Holdings (8016): FY2025 Results Summary — Overseas Business Turns Profitable as Net Profit Hits Medium-Term Target a Year Early

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

Onward Holdings reported net sales of ¥236.8 billion for FY2025 (fiscal year ended February 28, 2026), up 13.6% year on year, with domestic group companies such as Onward Personal Style Co., Ltd. and WEGO Co., Ltd. driving sales growth and Onward Kashiyama Co., Ltd. and overseas group companies also solid. Operating profit rose 14.3% to ¥11.6 billion and net profit increased 18.5% to ¥10.1 billion, thereby achieving the medium-term management plan target of net profit of ¥10 billion in FY2026 one year ahead of schedule. EBITDA rose 11.3% to ¥17.2 billion.

Consolidated Results (Full-Year Actual)

Gross profit margin improved 0.2 percentage points to 54.7% on rigorous inventory management, while the SG&A ratio decreased 0.2 percentage points to 49.8% mainly due to efficiency improvements in store operations and advertising and promotion in the second half. All key results also exceeded the company’s previously announced forecast. Figures below are in millions of yen unless otherwise noted.

Item	FY2025	FY2024	% Change
Net Sales	236,804	208,393	+13.6%
Gross Profit	129,415	113,575	+13.9%
SG&A Expenses	117,811	103,422	+13.9%
Operating Profit	11,604	10,153	+14.3%
Recurring Profit	11,176	10,084	+10.8%
Net Profit	10,094	8,516	+18.5%
EBITDA	17,195	15,452	+11.3%

Segment Results

By brand, net sales of strategically enhanced brands were strong: UNFILO up 35.5%, KASHIYAMA up 33.3%, WEGO up 7.5% (simple YoY comparison), and Chacott COSMETICS up 22.0%. By channel, net sales at department stores were down 2%, while shopping centers and other channels and e-commerce were robust, rising 29% and 12% respectively. The overseas business (Europe, United States, and Asia) achieved operating profitability overall for the first time in 11 fiscal years since FY2014. Figures below are in millions of yen.

Company/Segment	Metric	FY2025	FY2024
Onward Kashiyama Co., Ltd. + Onward Holdings Co., Ltd.	Net Sales	115,850	113,613
Onward Kashiyama Co., Ltd. + Onward Holdings Co., Ltd.	Operating Profit	7,240	7,190
WEGO Co., Ltd.	Net Sales	32,546	12,828
WEGO Co., Ltd.	Operating Profit	1,471	123
Domestic Subtotal (Excl. Onward Kashiyama + HD)	Net Sales	111,744	86,123
Domestic Subtotal (Excl. Onward Kashiyama + HD)	Operating Profit	6,789	5,431
Overseas Subtotal (Europe, United States, Asia)	Net Sales	23,018	21,828
Overseas Subtotal (Europe, United States, Asia)	Operating Profit	268	-115
Consolidated Total	Net Sales	236,804	208,393
Consolidated Total	Operating Profit	11,604	10,153

FY2026 Forecast

Onward Holdings forecasts net sales of ¥247.0 billion for FY2026, an increase of 4.3% year on year, focusing management resources on five fashion-segment businesses (Nijyusanku, J-PRESS, KASHIYAMA, UNFILO and WEGO), three wellness-segment businesses (cosmetics, gifts, and IP & pets), and the corporate design segment. Operating profit is expected to increase 10.3% to ¥12.8 billion, with gross profit margin forecast at 54.7% (same level as the previous fiscal year) and the SG&A ratio forecast to decrease 0.3 percentage points to 49.5%. In the overseas business, the company expects the U.S. business to achieve operating profitability alongside the European and Asian businesses, resulting in operating profitability in each region. Net profit is projected to increase 10.9% to ¥11.2 billion, and EBITDA is expected to increase 9.3% to ¥18.8 billion.

Item	FY2026 Forecast	FY2025 (Actual)	% Change
Net Sales	247,000	236,804	+4.3%
Operating Profit	12,800	11,604	+10.3%
Recurring Profit	12,300	11,176	+10.0%
Net Profit	11,200	10,094	+10.9%
EBITDA	18,800	17,195	+9.3%

Shareholder Returns

The company regards the distribution of profits to shareholders as one of its most important management issues, with a basic policy of distributing profits in a stable and appropriate manner linked to business performance, guided by a payout ratio of 40% or more. To further enhance shareholder returns, the company introduced an interim dividend system from FY2025 onward. For FY2025, it paid an interim dividend of ¥14 per share and a year-end dividend of ¥16 per share, for an annual dividend of ¥30 per share, an increase of ¥4 from the ¥26 dividend paid in FY2024. For FY2026, the company forecasts an interim dividend of ¥16 and a year-end dividend of ¥17, for a total annual dividend of ¥33 per share, an increase of ¥3 from the ¥30 dividend for FY2025.

Item	FY2024 (Actual)	FY2025 (Actual)	FY2026 (Forecast)
Interim Dividend per Share	–	¥14	¥16
Year-end Dividend per Share	¥26	¥16	¥17
Total Dividend per Share	¥26	¥30	¥33
Total Dividends (Millions of yen)	3,529	4,080	4,488
Dividend Payout Ratio	41.4%	40.4%	40.1%

Medium-Term Plan / Topics

Net profit for FY2025 reached ¥10.1 billion, achieving the medium-term management plan target of net profit of ¥10 billion in FY2026 one year ahead of schedule. ROE reached 11.4% (up 1.0 percentage points from FY2024), exceeding the company’s target of 10% or higher, while continuing to pursue a capital efficiency-focused financial strategy. The share price rose ¥278 (+51.6%) over the one-year period from March 1, 2025 to the end of February 2026, closing at ¥817 as of February 27, 2026, with PBR exceeding 1.0x at 1.19. In the milestone year marking the 100th anniversary of the Onward Group, the flagship store ‘SALON Nijyusanku AOYAMA’ opened in Aoyama, Tokyo in March 2026 (Onward Kashiyama Co., Ltd.). Separately, Creative Yoko Co., Ltd. announced that its original character Sirotan will receive a TV anime adaptation, scheduled to begin broadcasting on TV Asahi in fall 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.