FY2023 Second Quarter

Business Results


November 11, 2022

Wacoal Holdings Corp.

Hello, everyone. Thank you very much for joining us today.

I am Akira Miyagi, Director, Vice President, Executive Officer, and CFO of Wacoal Holdings Corp.

I will now explain Wacoal Holdings' financial results for H1 of the fiscal year ending March 2023.

(Supplementary material) Changes From the Same Period of the Previous Year

  1. Implementation of International Financial Reporting Standards (IFRS)
  • IFRS has been applied on a voluntary basis from 1Q of FY2023 in order to provide more useful information and improve convenience
  • "Business profit," calculated as revenue less cost of sales and selling, general and administrative expenses, is newly disclosed
  • Fluctuation risk in net income is reduced as fluctuations in stock market value, except for some stocks, will no longer affect the profit and loss statement
  • Results of all subsidiaries are disclosed as if the fiscal year ended in March as required by IFRS accounting standards where the fiscal years of all group companies must be unified
  • The figures for the cumulative consolidated term in 1H of the previous year are also disclosed according to IFRS
  1. The Impact of the Change in Revenue Recognition at Wacoal
  • Sales of consumption transactions in department store, etc., were changed to an over- the-counter price basis in the period under review
  • Because this change will increase sales revenue and SG&A expenses by the same amount, operating income will not be affected.
  • This change has boosted 1H sales revenue by approximately JPY2.6 billion (main factor of boost in sales revenue and SG&A expenses).


Please see page two.

Changes from the same period of the previous year are described.

The first is the voluntary application of International Financial Reporting Standards. The Company has voluntarily adopted IFRS since the beginning of the current fiscal year, and the figures for the previous fiscal year shown in this document have been reclassified to conform to IFRS.

The second is the change in revenue recognition at Wacoal. Sales of consumption transactions in department stores and so on, were changed to an over-the-counter price basis in the period under review. This change has pushed up sales revenue for H1 by approximately JPY2.6 billion, but since SG&A expenses have also increased by the same amount, there is no impact on each profit. Furthermore, no retroactive adjustments have been made.

1. FY2023 2Q financial Overview


I will now explain the Q2 results. First, let us start with the results of the last three months.

Executive Summary for FY2023 2Q Accounting Period (Jul-Sep)


48.5 billion yen

YoY +¥4.6 billion+11%

planning difference -¥6.5billion-12%

Fell short of the plan as sales were lower than expected in Wacoal, Wacoal China, and Wacoal America despite the higher revenue.

  • The number of customers returning to Wacoal's stores is low, and revenue is only slowly recovering.
  • In addition to poor performance in China due to the continuation of strict behavioral restrictions, revenue in the U.S. has slowed down due to a decline in consumer confidence.
    Meanwhile, revenue in Europe has been strong, and other Asian businesses are also on a recovery trend. The trend of foreign exchange rates had a positive impact.
  • Peach John performed about the same as the same period (2Q) of the previous year with the store expansion and other sales improving despite their struggling EC sales.

Business Profit

2.0 billion yen

YoY +¥0.1 billion+8%

planning difference -¥0.8billion-28%

Recovery in other Asian businesses was on par with 2Q of the previous year, but fell short of the plan.

  • Wacoal's recovery in sales was below expectations, and securing profit also fell short of the plan.
  • Increased due to the recovery of others Asian businesses, but was lower than expected due to business loss of IO and in China.
  • Peach John maintained a high level of profit, although profits were reduced due to soaring costs and increased sales promotion.
  • Other businesses recovered profitability through sales recovery and the contribution of business structural reforms.


Please see page four.

For the three months from July to September, sales revenue increased 11% over the same period last year. However, since sales in Wacoal, China, and the US were lower than expected, sales revenue ended below projections.

Business profit also fell far short of the plan due to the impact of underachievement in sales, despite an 8% increase YoY.

The performance of major subsidiaries will be explained on the next page.

FY2023 2Q(Jul-Sep): Business Conditions at Major SubsidiariesJapan

Wacoal 2Q sales trend

vs FY2022 vs FY2020

Peach John 2Q sales trend

vs FY2022 vs FY2020

Note: The graph shows the monthly figures before the adjustments in settling accounts. Including internal sales and excluding the impact of change in revenue recognition

Note: The graph shows the monthly figures PJ (Japan) before the adjustments in settling accounts.Including internal sales





In FY2020 3Q, there was a last-minute

demand prior to the tax increase.







Revenue() Excluding the impact of change in revenue recognition

  • vs FY2022 2Q11+5%
  • vs FY2022 2Q -23-28%)

FY2023 2Q Topics

  • Despite the relaxation of behavioral restrictions, the return of customers to Wacoal's stores remains weak, partly due to more people getting infected with COVID-19.

Sales by channel on a point-of-sale basis

department stores:3%(vs FY2020 -34%)

directly-managed stores:1%(vs FY2020 -26%)

GMS, Supermarket:Wacoal +7%(vs FY2020 -33%) Wing +6%(vs FY2020 -31%)

Own EC Company's EC sales

+5%vs FY2020+63%












Revenue the performance of PJ (Japan), includes internal sales

  • vs FY2022 2Q -3
  • vs FY2022 2Q4

FY2023 2Q Topics

  • Wacoal's stores remained solid due to a recovery in the number of return of customers, while the effectiveness of marketing in Wacoal's EC is less than expected and fell short YoY.

Sales by channelJapan

Mail-order:-15%(vs FY2020 2%)

Retail stores:9%(vs FY2020 0%)

Other EC :-5%(vs FY2020 40%)

Please see page five.

This is the three-month business situation for Wacoal and Peach John, the core operating companies in Japan.

Wacoal sales were sluggish in July due to the impact of the spread of infectious diseases, and although sales in August and September exceeded the previous year's levels, overall sales fell short of the plan.

Peach John's sales fell below the previous year's level due to continued struggles in the e-commerce business, although directly managed stores performed well thanks to the effects of marketing measures.

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Wacoal Holdings Corporation published this content on 02 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2022 06:13:02 UTC.