Wacoal'S Latest Annual Report: Good Performance In Overseas Markets And High Growth In The Chinese Market

Underwear giant Wacoal annual report original title: Japanese underwear giant Wacoal latest annual report: overseas market performance is good, Chinese market high level growth drive business profit increased 13.3%

Wacoal Holdings, Japan's underwear and textile giant, recently announced its full year results in fiscal year 2017. Sales were basically flat compared with the previous fiscal year, operating profit grew and net profit fell. Holdings

In the 2017 fiscal year ending March 31, 2018, the core financial data of Wacoal group are as follows:

Sales fell 0.1% to 195 billion 725 million yen compared with the same period last year.

Operating profit grew 13.3% to 12 billion 534 million yen over the same period.

Net profit fell 22.2% to 9 billion 745 million yen over the same period.

Among them, the favorable factors to increase operating profit include:

The improvement of domestic business profitability;

Sales growth in overseas markets;

The compensatory income of a subsidiary moving away from the factory;

The French company's liquidation related one-time costs - in July 2016, Wacoal sold its French underwear and swimsuit brand Huit to the Trendy Capital group, the parent company of pajamas brand Canat.

(see "ornate ambition" previously reported: Japan Wacoal sells its French underwear and swimsuit brand Huit, which is once again exempt from bankruptcy).

On the whole, the group's Peach John and other businesses are in a downward trend, of which Peach John sales fell 3% compared with the same period last year, while sales of other businesses fell 6% year-on-year.

Local market

Japan's domestic economy has revived due to improved employment environment, but consumers are still worried about the future, and consumer spending is still in the doldrums, leading to local women.

The market is still hard.

Affected by the adverse market environment of wholesale channels, Japan's domestic sales fell by 2% compared with the same period last year, and operating profit increased by 13% over the same period last year.

Wholesale sales fell 2% year-on-year

Retail sales increased by 1% over the same period last year.

Affected by the decline in sales of core brand CW-X, nutrition and health business sales fell 5% year-on-year

The sales volume of network sales (pre mail order business) increased by 1% compared with the same period last year, of which the sales volume of online stores increased by 14% compared with that of the previous year, and the sales volume of mail order business fell by 4% compared with the same period last year.

Subsidiary Ai Co. sales fell 8% year-on-year, of which core swimwear sales fell 4% compared with the same period last year, and lingerie sales fell 14% over the same period last year.

Wacoal pointed out that the group increased the profit margin of local businesses through restructuring, strengthening the wholesale business structure, achieving full channel sales, launching the core IT system and improving inventory efficiency.

Overseas market

In Europe, the United States and China

Driven by strong online and stable growth in same store sales, sales in overseas markets increased by 7% over the same period last year, and operating profit increased by 26% over the same period last year.

In US dollars, sales in the US increased by 3% compared with the same period last year, and operating profit increased by 2% over the same period last year.

In sterling, sales in the European market grew by 3% year-on-year, with the German and Spanish markets rising by two digits.

In terms of RMB, China's market sales increased by 10% over the same period last year, and operating profit increased by 9% over the same period last year.

Wacoal pointed out that strengthening business cooperation in overseas markets, actively developing online businesses and improving product quality and cost advantages in China and ASEAN countries have promoted sales growth in overseas markets.

China

In view of the continuous growth of the disposable income of consumers, and with the opening of special stores during the Spring Festival, women's day, national day and other high demand periods, the group's marketing strategy has been launched, and the retail sales in the Chinese market have maintained "a high level of growth".

The average sales volume of department stores increased by 8% compared with the same period last year, and the sales of electronic business (including direct and third party) increased by 29% over the same period last year.

Wacoal pointed out that the steady growth of the number of Chinese repeat customers promoted Wacoal brand sales to grow by 10% compared to the same period last year, and Peach John brand sales increased by 51% over the same period last year.

In the future, Wacoal group will continue to improve its performance in Japan's domestic and overseas key markets, improve the efficiency of wholesale business structure, upgrade the full channel sales ability of the European and American markets, and enhance the product quality and cost competitive advantages of China and ASEAN countries.

Wacoal Group expects the 2018 fiscal year of March 31, 2019:

Sales grew by 2.2% to 200 billion yen.

Operating profit fell 20.2% to 10 billion yen over the same period.

Net profit increased 2.6% to 10 billion yen.