Goldwin (8111) investor relations material

Executive summary

• Net sales reached ¥137,516 million, up 3.9% year-on-year, marking a record high for the fifth consecutive year, with operating profit rising 18.1% to ¥25,859 million and an operating margin of 18.8%.

• Gross profit margin improved to 53.0%, up 0.9pt YoY, despite challenges in winter goods and declining inbound demand from mainland China.

• Profit attributable to owners of parent declined 1.4% YoY to ¥24,094 million due to higher income taxes and extraordinary losses, including a loss on sale of investment securities.

• Continued targeted investments in business growth and human capital, with global expansion and brand value prioritized over short-term sales.

• The company prioritized inventory health, especially in Q4.

Financial highlights

• FY26.3 net sales: ¥137.5B (+3.9% YoY), operating profit: ¥25.9B (+18.0% YoY), ordinary profit: ¥33.9B (+10.1% YoY), net income: ¥24.1B (-1.4% YoY).

• Gross profit margin: 53.0% (+0.9pt YoY), operating profit margin: 18.8% (+2.2pt YoY).

• E-commerce sales rose 15.7% YoY, with the e-commerce ratio at 14.6%.

• Inbound sales ratio at self-operated stores increased to 26.5% (+1.1pt YoY), with growth outside mainland China offsetting declines from China.

• Equity ratio at 76.9%, ROE at 20.1%, and cash and cash equivalents at year-end were ¥50,956 million.

Outlook and guidance

• FY27.3 net sales forecast: ¥145.4B (+5.7% YoY), gross profit margin: 54.3% (+1.3pt), operating profit: ¥26.1B (+0.9% YoY), net income: ¥25.6B (+6.3% YoY).

• SG&A expenses expected to rise due to growth investments and human capital strengthening.

• Medium-term plan targets net sales of ¥188.5B by FY29.3, with a focus on driving sales growth and maintaining margins.

• Dividend payout ratio to increase to 37.5% in FY27.3, with flexible share buybacks and a DOE target of 6.9%.

• Management will continue to focus on gross profit margins and brand value over volume growth.