Kawanabe <8123> announced its consolidated financial results for the first quarter of the fiscal year ending in March 2025 (April-June 24). Revenue decreased by 2.3% year-on-year to JPY 2.718 billion, operating loss was JPY 0.185 billion (loss of JPY 0.156 billion in the same period last year), ordinary loss was JPY 0.159 billion (loss of JPY 0.132 billion in the same period last year), and net quarterly loss attributable to the parent company shareholders was JPY 0.184 billion (loss of JPY 0.162 billion in the same period last year).

The sales of daily necessities business decreased by 2.9% compared to the previous year. The sales of handkerchiefs decreased by 4.3% compared to the previous year, while the sales of scarves/mufflers increased by 2.3% and the sales of towels/miscellaneous goods increased by 1.2% compared to the previous year.

The sales of fragrance business increased by 0.5% compared to the previous year. The addition of sales from the brand “CREED”, which was introduced in the previous period, and the increase in sales of multiple brands due to inbound demand, as well as the increase in sales of the flagship store of “ACQUA DI PARMA” in Ginza Six, contributed to the smooth progress of sales in department stores and directly-managed stores, which are the main sales channels centered in urban areas. On the other hand, there was a decrease in sales in the wholesale division due to the termination of the contract for the main brand “CAROLINA HERRERA”.

The consolidated performance forecast for the fiscal year ending in March 2025 maintains the initial plan of revenue of JPY 13.711 billion, an increase of 4.9% from the previous year, operating profit of JPY 0.255 billion, an increase of 1.0% from the previous year, ordinary profit of JPY 0.383 billion, an increase of 8.0% from the previous year, and net income attributable to parent company shareholders of JPY 0.283 billion, an increase of 6.0% from the previous year.