(Filed Under Financial and General Interest News). Sales fell 20.2% and earnings declined 54.9% in the first nine months at Japan-based Wacoal Holdings Corp.
The company earned 4,972 million yen (roughly $47.5 million at current exchange rates) on sales of 114,901 million yen (about $1.1 billion) in the first three quarters of its fiscal year which ends March 31, 2021. During the same period last year the holding company earned 11,014 million yen (about $105.2 million) on sales of 144,031 million yen (about $1.4 billion).
Wacoal International Corp. (WIC), the U.S. segment, reported an operating loss of 1,051 million yen (about $10.0 million) on sales of 12,790 million yen (about $122.1 million) in the nine months. Last year the division earned 479 million yen (about $ 4.6 million) on sales of 14,241 million yen (about $136.1 million).
For the full fiscal year 2021, which ends on March 31, 2021, WIC, which includes all of the Americas as well as the Lively online business, has forecasted combined sales, of 17,686 million yen (about $169.0 million). In fiscal 2020, WIC reported combined sales of $180,651,000 of which $11,967,000 came from Lively (also known as Intimates Online, Inc.) and $168,684,000 from its other brands.
For the first nine months in fiscal 2021, Wacoal said the operating loss at the U.S. division was “due to our continued strategic growth investments in our Lively brand distributed by Intimates Online, as well as the impact of the decreased revenue,” from its other products.
Sales at the U.S. division “for the current consolidated third quarter increased by 10.9% (an increase of 6.6% on a Japanese yen basis) as compared to such sales for the corresponding period of the previous fiscal year due to an increase of 61.8% in sales recorded at Intimates Online, which we acquired during the previous fiscal year, as well as an increase of 4.5% in sales recorded at Wacoal America Inc., which distributes “Wacoal” and “b.tempt’d” brand products, from growth achieved through e-commerce sales.”
The company continued, “The sales from the e-commerce business of Wacoal America Inc. [all of WIC except Lively] maintained high growth, achieving an increase of 57.1% (an increase of 45.6% for the current consolidated third quarter) from such sales for the corresponding period of the previous fiscal year. Sales from third-party e-commerce websites were also strong. Sales from physical stores (department stores), however, were weak due to the impact of our clients’ expense control efforts over purchases, in addition to the temporary closings following the implementation of lockdown measures and a delay in recovery after the lifting of such measures. Intimates Online maintained high growth, which reflected our successful advertising investments.”
In contrast, Wacoal Europe Ltd. posted operating income of 212 million yen (about $2.0 million) on sales of 7,027 million yen (about $67.1 million) in the nine months ending December 31, 2020.—NM
Wacoal’s nine month data book can be found here:
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