Latest Quarterly Results Investors
Third Quarter of the Fiscal Year Ending March 2025
Financial Results Summary
Third quarter net sales amount to 96,833 million yen, up 2.1% year on year, in line with our initial plan. Cold-weather gear sales slowed due to a mild winter but rebounded sharply in December due to lower temperatures, reaching a record-high monthly total. Inbound demand remains strong, with notable sales growth at directly managed stores in urban areas. Looking at sales by channel, the self-managed sales ratio was 60%, in line with medium-term management targets. Physical store sales remained strong, maintaining double-digit growth. EC sales also grew steadily, up 6.2% year on year.
| Net sales | Gross profit | Operating profit | Ordinary profit | Net income | |
|---|---|---|---|---|---|
| Results （Millions of yen） | 96,833 | 50,393 | 16,939 | 21,885 | 17,695 |
| Year-on-year change (cumulative) | 102.1% | 99.6% | 88.3% | 92.8% | 100.7% |
| Year-on-year change (quarterly) | 99.4% | 96.5% | 89.4% | 83.1% | 95.9% |
| Profit margin ratio () is the same as the previous year |
－ | 52.0% （53.3%） |
17.5% （20.2%） |
22.6% （24.9%） |
18.3% （18.5%） |
Steady Inbound Sales
Inbound sales accounted for 22.3% of sales at directly managed stores on a cumulative basis. Sales were particularly high in urban areas, with inbound tourist purchases driving strong sales growth at stores in Harajuku and Marunouchi. Sales breakdown by region showed sustained high demand from mainland China, Taiwan, and South Korea. Japan launch of THE NORTH FACE KOREA COLLECTION, developed by YOUNGONE OUTDOOR Corporation, performed well and contributed to acquiring new customers.
Inbound sales ratio (directly managed stores)
| Assignment category | Current issues in responding to inbound tourism | Policy for future initiatives |
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| Optimizing target customer segments |
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| Improving the purchasing process |
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Store Openings in Mainland China
Under the Goldwin500 project, we strive to enhance brand recognition in the premium sports segment and strengthen expansion in the Chinese market. We expanded our store network to four locations, opening in Chengdu (August 2024), Shanghai (September), and Hangzhou (January 2025), alongside the existing Beijing store. New store openings are as follows.
Chengdu
Although initial sales fell short of expectations, current sales are on par with those in Beijing. Customer repeat rates are improving, and we expect further sales growth.
Shanghai
Sales have significantly exceeded expectations since launch, driven by strong demand for collaboration products, especially with OAMC and Goldwin 0.
Business in
South Korea
We opened our first pop-up store in Seongsu, Seoul, in November 2024 to enhance Goldwin’s presence among trend-conscious young consumers, particularly Gen Z, in the South Korean market.
- Sales remained strong, driven by a highly fashion-conscious customer base.
- The pop-up store achieved high per-customer spending and effectively reached the target audience during the event period.
- Plans for 2025 pop-up stores and permanent locations are underway.
Fiscal Year Ending March 2025 Full-Year Forecast
The Company intends to maintain the full-year forecast announced on May 14, 2024.
Cumulative third-quarter sales remain in line with expectations. Careful management of advertising and other costs drove profit beyond the initial forecast at all levels. The warm winter spread the peak sales period for fall and winter products across the third and fourth quarters. We plan to strengthen fourth-quarter promotions, focusing on limited-edition and high-performance products based on these circumstances. To this end, we may also implement certain initiatives ahead of schedule in the next fiscal year in line with our medium-term management plan.
| Net sales | Operating profit | Ordinary profit | Net income | |
|---|---|---|---|---|
| Plan（Millions of yen） | 133,200 | 18,100 | 25,900 | 21,000 |
| Year-on-year | 105.0% | 75.9% | 79.4% | 86.5% |
| Sales Composition ratio | – | 13.6% | 19.4% | 15.8% |
| Progress rate up to third quarter | 72.7% | 93.6% | 84.5% | 84.3% |
- Sales and Profit Optimization
Our full-year forecast remains unchanged, with cumulative third-quarter sales growing year on year. The operating profit margin remains high despite higher one-time expenses pressuring profit. - Inventory Management and Supply Chain
Our precise forecasting and inventory control mitigated the risk of higher cold-weather gear inventory from the delayed sales peak. We will maintain our system to support future demand growth. - Sales Channel Optimization
The Company is strengthening collaboration between directly managed stores and business partners to drive e-commerce sales and acquire new customers. We aim to improve profitability across regions and channels. - Marketing Measures
We are leveraging SNS and multilingual promotions to expand our domestic and international customer base. Our measures focused on capturing inbound demand demonstrate particularly strong results.