FY2024 Third Quarter Business
Results Presentation
February 9, 2024
1. | FY2024 3Q(Oct-Dec) Financial Overview |
2
Executive Summary for FY2024 3Q (Oct-Dec)
Revenue
46.3 billion yen
<YoY>-¥0.1billion(-0.3%)
<Revised plan difference>-¥4.2billion(-8%)<Initial plan difference>-¥6.5billion(-12%)
- Fall/winter sales were sluggish at all major companies, resulting in a
significant shortfall from the revised plan
FY2024 | 1H | FY2024 3Q | |||||
Results | YoY | Planning | Results | YoY | Revised plan | ||
difference | difference | ||||||
Wacoal business(Japan) | 47.3 | -1.6(-3%) | -3.9(-8%) | 25.3 | -0.5(-2%) | -1.6(-6%) | |
Wacoal business(Overseas) | 35.0 | -0.06(-0.2%) | -2.8(-7%) | 15.3 | +0.6(+4%) | -2.3(-13%) | |
Peach John business | 5.5 | -0.5(-9%) | -0.8(-12%) | 2.6 | -0.5(-15%) | -0.6(-20%) | |
Other businesses | 7.3 | -0.2(-3%) | -0.4(-6%) | 3.2 | +0.3(+11%) | +0.4(+13%) | |
Business Profit
1.1 billion yen
<YoY>+¥0.5 billion(+80%)
<Revised plan difference>+¥1.2 billion(ー) <Initial plan difference>-¥0.9 billion(ー)
- Exceeded plan due to cost reductions and delays in sales promotion expenses
(vs Revised plan Revenue -2.8 billion yen SGA -4.0 billion yen)
FY2024 | 1H | FY2024 3Q | |||||
Results | YoY | Planning | Results | YoY | Revised plan | ||
difference | difference | ||||||
Wacoal business(Japan) | 1.0 | -0.7(-42%) | -0.1(-11%) | 1.7 | +1.3(+394%) | +0.5(+48%) | |
Wacoal business(Overseas) | 2.3 | +0.5(+29%) | -0.3(-12%) | -0.3 | -0.8(ー) | +0.7(ー) | |
Peach John business | 0.3 | -0.6(-68%) | -0.3(-47%) | -0.03 | -0.1(ー) | -0.3(ー) | |
Other businesses | 0.2 | +0.2 | -0.01(-6%) | -0.2 | +0.08(ー) | +0.3(ー) | |
(returning to profit) | |||||||
Operating Profit
1.4 billion yen
<YoY>+¥7.2 billion(ー)
<Revised plan difference>+¥1.5 billion(ー) <Initial plan difference>-¥0.05billion(-3%)
- Impairment loss (¥10.1 billion) related to Wacoal International (U.S.) was recorded in the previous fiscal year
3
FY2024 3Q(Oct-Dec): Business Conditions at Major Subsidiaries(Japan)
Wacoal 3Q sales trend | vs FY2023 |
vs FY2020 |
Note: The graph shows the monthly figures before the adjustments in settling accounts. (Including internal sales Excluding the impact of change in revenue recognition)
120 | |||||||||
110 | 105 | 103 | 106 | 106 | |||||
100 | 97 | 93 | 94 | ||||||
88 | 89 | 91 | |||||||
90 | |||||||||
94 | 94 | ||||||||
77 | 90 | ||||||||
76 | |||||||||
80 | 86 | ||||||||
69 | |||||||||
65 | |||||||||
70 | |||||||||
60 | |||||||||
50 | Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. |
Revenue | (including internal sales, Excluding the impact of change in revenue recognition) | ||||||||
➢ vs FY2023 3Q -2% vs Revised plan -6% |
Peach John 3Q sales trend | vs FY2023 | |||||
vs FY2020 | ||||||
Note: Graphs are monthly figures based on internal management of PJ (Japan) | ||||||
120(Including internal sales, Excluding receiving shipping charges) | ||||||
110 | 109 | 105 | 109 | 109 | ||
116 | 102 | |||||
99 | ||||||
100 | ||||||
90 | 96 | 96 | 98 | 82 | 99 | |
90 | 91 | |||||
91 | 90 | |||||
80 | ||||||
79 | ||||||
81 | ||||||
70 | ||||||
60
50
Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. |
Revenue (including internal sales)
➢ vs FY2023 3Q -13% vs Revised plan -20%
【Topics of FY2024 3Q】
- Same as in the first half, sales of high-end products have been strong, but sales of mid-range products have been sluggish
- Due to sluggish sales, returns increased to adjust in-store inventory
Store basis Sales by Channel(% Change)
department stores:-6%(vs FY2020 -22%) directly-managed stores:+3%(vs FY2020 -9%)
GMS, Supermarket:Wacoal -5%(vs FY2020 -9%) Wing -12%(vs FY2020 -12%) Own EC:+13%(vs FY2020 +86%)
【Topics of FY2024 3Q】
- Collaboration projects with famous celebrities remained weak
- Introduced a new membership system with increased incentives for premium customers
Sales by channel(Japan)
Own EC:-31%(vs FY2020 -11%)
Retail stores:-7%(vs FY2020 +5%)
Other EC:+21%(vs FY2020 +67%)
4
FY2024 3Q(Oct-Dec): Business Conditions at Major Subsidiaries(US)
Wacoal America 3Q sales trend | vs FY2023 | IO Inc. 3Q sales trend |
vs FY2020 |
vs FY2023 vs FY2020
Note: The graph shows the monthly figures before the adjustments in settling accounts. (Including internal sales)
Note: The graph shows the monthly figures before the adjustments in settling accounts. (Including internal sales)
130 | 125 | ||||||||
120 | 116 | 116 | 118 | ||||||
114 | |||||||||
110 | 107 | 113 | |||||||
101 | 101 | ||||||||
110 | |||||||||
100 | 93 | 94 | 95 | 96 | |||||
90 | 93 | 98 | 94 | ||||||
80 | 87 | ||||||||
70 | Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. |
【Revenue】 including internal sales, local currency basis
- vs FY2023 3Q +3% vs Revised plan -0.9%
【Topics of FY2024 3Q】
- Proceed as per the revised plan due to the relaxation of purchase restraints by major customers
- EC sales in 3Q +11%
Store basis Sales by Channel(% Change)
Physical store:+2% EC Total:+11%
(Own EC:+2% Department store EC:-8% dedicated EC:+58%)
171 | |||||||||
170 | |||||||||
136 | |||||||||
121 | |||||||||
120 | 106 | 103 | 99 | ||||||
83 | 85 | ||||||||
70 | 61 | 53 | 58 | 86 | 49 | ||||
48 | |||||||||
79 | |||||||||
67 | 69 | ||||||||
38 | |||||||||
20 | Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. |
【Revenue】 including internal sales, local currency basis
- vs FY2023 3Q -40% vs Revised plan -65%
【Topics of FY2024 3Q】
- Following the decision to exit the business, the focus shifted to reducing inventory sales through discount promotions from November onward, but the results fell far short of expectations
Sales by channel(% Change)
IO EC:-38%
Directly managed store:-36%
Wholesale:-49%
5
FY2024 3Q(Oct-Dec): Business Conditions at Major Subsidiaries(Europe・China)
Wacoal Europe 3Q sales trend |
Note: The graph shows the monthly figures before the adjustments in settling accounts. (Including internal sales)
vs FY2023 vs FY2020
Wacoal China 3Q sales trend |
Note: The graph shows the monthly figures before the adjustments in settling accounts. (Including internal sales)
vs FY2023 vs FY2020
140 | 137 | 140 | |||||||
124 | |||||||||
122 | |||||||||
116 | |||||||||
120 | 110 | 109 | |||||||
102 | 101 | 105 | |||||||
100 | 85 | 114 | |||||||
101 | 97 | ||||||||
93 | |||||||||
80 | |||||||||
86 | |||||||||
62 | |||||||||
60 | |||||||||
56 | |||||||||
40 | Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. |
【Revenue】 local currency basis
- vs FY2023 3Q +1% vs Revised plan -12%
【Topics of FY2024 3Q】
- Sales stagnated in the UK and Europe in November and December
- Failed to cover the negative impact of the cyber incident occurred in September
Sales by area(% Change)
UK:-5% North America:-12% Europe:+23%
220 | 209 | ||||||||
200 | |||||||||
180 | |||||||||
160 | |||||||||
140 | 119 | ||||||||
120 | 95 | 99 | 92 | ||||||
100 | 88 | 84 | 84 | 90 | |||||
80 | 53 | 57 | |||||||
60 | |||||||||
70 | 71 | 64 | 63 | 60 | 63 | ||||
60 | |||||||||
40 | |||||||||
Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. | |
【Revenue】 local currency basis・Figures for vs FY2020 are calculated based on monthly figures.
- vs FY2023 3Q -6% vs Revised plan -27%
【Topics of FY2024 3Q】
- Sluggish growth in the number of customers visiting physical stores and struggles in EC continued
- 80% of the pre-COVID level was set as the revised plan, but remained at around 60%.
Sales by channel(% Change)
Real Stores:-0.3%(vs FY2020 -39%)
Other EC:-10%(vs FY2020 -45%) Own EC:+46%
6
2. | FY2024 3Q(Apr-Dec) Financial Overview |
7
Executive Summary for FY2024 3Q (Apr-Dec)
Revenue
141.4 billion yen
<YoY>-¥2.5billion(-2%)
<Revised plan difference>-¥4.2billion(-3%)<Initial plan difference>-¥14.4billion(-9%)
- Domestic : Sales of mid-range products were sluggish due to an increase in selective consumption
- Overseas : Although the U.S. showed signs of recovery, the U.K., Europe, and China struggled
(billion of yen) | |||||
FY2024 3Q | YoY | Revised plan difference | |||
Wacoal business(Japan) | 72.6 | -2.1(-3%) | -1.6(-2%) | ||
Wacoal business(Overseas) | 50.3 | +0.5(+1%) | -2.3(-4%) | ||
Peach John business | 8.1 | -1.0(-11%) | -0.6(-7%) | ||
Other businesses | 10.5 | +0.09(+0.9%) | +0.4(+4%) | ||
Business Profit
5.0 billion yen
<YoY>-¥0.02billion(-0.4%)
<Revised plan difference>+¥1.2 billion(+30%) <Initial plan difference>-¥1.5billion(-24%)
- To absorb the impact of decline in sales and higher cost of sales ratio, each company controlled SG&A expenses
(billion of yen) | |||||
FY2024 3Q | YoY | Revised plan difference | |||
Wacoal business(Japan) | 2.6 | +0.6(+30%) | +0.5(+25%) | ||
Wacoal business(Overseas) | 2.0 | -0.2(-10%) | +0.7(+55%) | ||
Peach John business | 0.3 | -0.7(-74%) | -0.3(-57%) | ||
Other businesses | 0.06 | +0.3(returning to profit) | +3(-) | ||
Operating Loss
-2.0 billion yen
<YoY>-¥0.2 billion
<Revised plan difference>+¥1.5 billion <Initial plan difference>-¥7.8 billion
-
In the current fiscal year, impairment loss (¥7.4 billion) related to Wacoal International
(U.S.) was recorded due to IO's withdrawal from the LIVELY business and subsequent liquidation - In the previous fiscal year, a gain on sales of fixed assets (¥3.0 billion) was recorded as other profit and an impairment loss (¥10.1 billion) related to the U.S. business was recorded as other expenses
8
Revenue and Business Profit for FY2024 3Q
(billions of yen)
*Wacoal Europe is calculated excluding brand amortization cost
Revenue | YoY | Revised plan | Sales Profit ratio | FY2023 3Q | FY2024 3Q YTD result | SGA ratio | FY2023 | FY2024 3Q YTD result | ||||||||||||||||
difference | YTD | 3Q YTD | ||||||||||||||||||||||
Wacoal | -2.1 | -1.6 | Wacoal | 56.7% | 56.2% | -0.5pt | Wacoal | 54.9% | 53.5% | -1.4pt | ||||||||||||||
business(Japan) | ||||||||||||||||||||||||
Peach John Domestic | 64.9% | 61.4% | -3.4pt | Peach John Domestic only | 49.9% | 57.6% | +7.6pt | |||||||||||||||||
Wacoal | ||||||||||||||||||||||||
+0.5 | -2.3 | only | ||||||||||||||||||||||
Wacoal International Corp. | ||||||||||||||||||||||||
business(Overseas) | 48.0% | 47.4% | -0.6pt | |||||||||||||||||||||
Wacoal International | ||||||||||||||||||||||||
50.3% | 49.7% | -0.6pt | (U.S.) | |||||||||||||||||||||
Peach John business | -1.0 | -0.6 | Corp. (U.S.) | |||||||||||||||||||||
Wacoal Europe Ltd. | 46.6% | 49.5% | +2.9pt | |||||||||||||||||||||
Wacoal Europe Ltd. | 58.8% | 58.1% | -0.7Pt | |||||||||||||||||||||
Other businesses | +0.09 | +0.4 | ||||||||||||||||||||||
Wacoal China Co., Ltd. | 78.0% | 73.0% | -4.9pt | |||||||||||||||||||||
Wacoal China Co., Ltd. | 69.0% | 69.6% | +0.6pt | |||||||||||||||||||||
Business Profit | YoY | Revised plan | ||||||||||||||||||||||
difference | ||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||
Wacoal | +0.6 | +0.5 | ||||||||||||||||||||||
61.8 | ||||||||||||||||||||||||
business(Japan) | ||||||||||||||||||||||||
Sales Profit ratio | SGA ratio | |||||||||||||||||||||||
YoY | Wacoal | -0.2 | +0.7 | |||||||||||||||||||||
56.3% | 52.8% | |||||||||||||||||||||||
-0.4(-0.6%) | business(Overseas) | |||||||||||||||||||||||
Revised plan | (YoY-0.5pt) | (YoY-0.5pt) | ||||||||||||||||||||||
difference | (Revised plan difference | (Revised plan difference | Peach John business | -0.7 | -0.3 | |||||||||||||||||||
141.4 | -1.4(-2%) | -0.3pt) | -1.2pt) | |||||||||||||||||||||
Other businesses | +0.3 | +0.3 | ||||||||||||||||||||||
YoY | SGA | |||||||||||||||||||||||
-2.5 | 79.6 | 74.6 | ||||||||||||||||||||||
(-2%) | ||||||||||||||||||||||||
Revised plan | YoY | YoY | Business Profit ratio | |||||||||||||||||||||
difference | -2.1 | -2.1(-3%) | ||||||||||||||||||||||
3.5% | ||||||||||||||||||||||||
-4.2 | (-3%) | Revised plan difference | ||||||||||||||||||||||
(-3%) | Revised plan | (YoY±0pt) | ||||||||||||||||||||||
-4.0億円(-5%) | (Revised plan difference | |||||||||||||||||||||||
difference | +0.9pt) | YoY | ||||||||||||||||||||||
-2.8 | -0.02(-0.4%) | |||||||||||||||||||||||
(-3%) | 5.0 | Revised plan difference | ||||||||||||||||||||||
+1.2(+30%) | ||||||||||||||||||||||||
Revenue | Sales margin | Business Profit |
9
FY2024 3Q Profit impact items
- Operating profit/loss: In addition to the decrease in business profit, it was affected by an impairment loss of ¥7.4 billion related to the U.S. business
- Income before income taxes: Impacted by investment impairment* (-¥1.8 billion) in affiliated companies (Shinyoung Wacoal and Thai Wacoal)
Business Profit | Other income and |
expenses | |
5.0 | |
YoY | -7.0 |
-0.02 | |
(-0.4%) | |
Revised plan | YoY |
difference | -0.2 |
+1.2 | Revised plan |
(+30%) | |
difference | |
+0.4 |
Impairment loss on goodwill of Wacoal
International due to withdrawal from the LIVELY business, etc. -7.4 Impact of withdrawal from PJ China business -0.2
Operating Loss
-2.0 | Finance income |
and costs | |
0.4 | |
YoY | YoY |
-0.2 | -1.6 |
Revised plan | Revised plan |
difference | difference |
+1.5 | +0.2 |
- Investment impairment: An impairment is recorded when the price per share of an investment in an affiliate falls below its book value under certain conditions.
(billions of yen)
Loss | Loss | Loss Attributable | ||
before tax | to Owners of Parent | |||
-1.6 | Income | -4.0 | -3.9 | |
tax expenses | ||||
YoY | YoY | YoY | ||
2.4 | -1.6 | |||
-1.8 | -1.7 | |||
Revised plan | YoY | Revised plan | Non-controlling | Revised plan |
difference | -0.07 | difference | interests | difference |
+1.8 | ||||
+1.1 | +1.1 |
Change | -0.005 |
+0.7 | |
Impairment loss on equity | |
method investments -1.8 | |
10 | ・Shinyoung Wacoal |
・Thai Wacoal |
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Wacoal Holdings Corporation published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 05:20:04 UTC.