Kawabe <8123> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 (April-September 24). Revenue decreased by 2.3% year-on-year to 5.594 billion yen, operating loss was 0.188 billion yen (compared to a loss of 0.09 billion yen in the same period of the previous year), ordinary loss was 0.132 billion yen (compared to a loss of 0.046 billion yen in the previous year), and net income attributable to the parent company shareholders was 0.012 billion yen (compared to a loss of 0.073 billion yen in the same period of the previous year).

The sales revenue of personal goods business increased by 96.0% compared to the previous year. Sales of handkerchiefs increased by 96.4% year-on-year. Sales of scarves and mufflers increased by 98.2% compared to the previous year. Sales of towels and miscellaneous goods decreased by 93.8% compared to the previous year.

The sales revenue of the fragrance business increased by 105.6% compared to the previous year. In addition to the sales growth of single-brand stores such as Ginza Six store for the brands "CREED" and "ACQUA DI PARMA" introduced in the previous period, there was sales growth due to inbound demand, and existing main brand products (BVLGARI, FERRAGAMO, VERSACE) achieved sales growth of 105-110% compared to the previous year. Sales at major sales channels, department stores, and directly operated stores grew steadily by 120.6% compared to the previous year. However, there was a decrease in sales due to the ending of the contract for the main brand "CAROLINA HERRERA" in the wholesale department. Nonetheless, the overall sales of the business increased by 105.6% compared to the previous year.

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.