(Filed Under wholesale Lingerie News). In the first nine months of its current fiscal year (April 1, 2021 to December 31), the Wacoal division that includes all the Americas recorded a sales increase to 19,331 million yen (about $166.8 million at current exchange rates), compared to 12,790 million yen (about $110.4 million) in the same period last year.
Operating income was 480 million yen (about $4.3 million reported by Wacoal at the time), compared to a loss of 1,051 million yen (about $9.1 million) in the same period last year.
The company, which is based in Japan and has several international divisions, explained that “sales from Wacoal International Corp. (U.S.) on a local currency basis increased by 44.3% (an increase of 51.1% on a Japanese yen basis) as compared to such sales for the corresponding period of the previous fiscal year. Sales from Wacoal America, Inc., which distributes “Wacoal” and “b.tempt’d” brand products, increased by 47.7% for the current consolidated third quarter, exceeding the pre-pandemic level, due to strong sales from our e-commerce website and physical stores at department stores supported by strong recovery in consumer spending, despite missed opportunity to sell our best-selling products due to inadequate stock after October. While sales from our e-commerce website were weak due to the impact of rising costs of social media advertising, sales from Intimates Online, Inc., which distributes the “Lively” brand, increased by 26.8% as a result of expanded sales from wholesale and directly-managed stores.”
“On a local currency basis, we recorded an operating income of $4.3 million,” the company continued, “due to the favorable effect of increased revenue.” For the 13 weeks ending December 31, the division recorded and operating loss, “due to rising shipping costs and changes in distribution ratio of sales channel, in addition to our strategic investments to expand our e-commerce business.”
For the nine months, Wacoal Europe Ltd. reported operating income of 1,349 million yen (about $11.6 million) on sales of 11,937 million yen (about $103 million), compared to operating income of 212 million yen (about $1.8 million) on sales of 7,027 million yen (about $60.6 million) in three quarters ending December 31, 2020.
The company explained, “sales from Wacoal Europe Ltd. On a local currency basis increased by 51.5% (an increase of 69.9% on a Japanese yen basis) as compared to such sales for the corresponding period of the previous fiscal year. Supported by strong recovery in consumer spending, sales in the United States, United Kingdom and Europe for the current consolidated third quarter also exceeded the pre-pandemic level across all areas. The impact of the closings of certain department stores was mitigated by our business with new clients in the United Kingdom, and also by strong sales from our core specialty stores which exceeded the pre-pandemic levels. Our e-commerce business in the United Kingdom continued to maintain strong sales, which increased by 35.0%. Operating income on a local currency basis increased by 466.5% (an increase of 536.3% on a Japanese yen basis) due to the effect of increased revenue.”
For the nine months ending December 31, 2021, global parent company Wacoal Holdings Corporation, reported net earnings of 3,493 million yen (about $30.1 million), on sales of 130,187 million yen (about $1.12 billion), compared to net earnings of 4,972 million yen ($42.9 million) on sales of 114,901 million yen (about $991.6 million) in the same period last year. — NM
(Note: we sometimes include information on the value of foreign currency, converted to U.S. dollars, at the time of publication to provide comparative information to the reader. Due to currency fluctuations over time, actual values at the time of financial reporting might be somewhat different).
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