Wacoal Holdings Corporation announced its consolidated financial results for the fiscal year ended March 31, 2013, on the 14th. The group's consolidated sales increased 3.1% year-on-year to ¥177,154 million. Operating income decreased 22.0% to ¥8,099 million. Income before income taxes increased 3.3% to ¥10,544 million. Net income attributable to Wacoal Corporation shareholders increased 10.3% to ¥7,623 million. This marks the third consecutive year of increased sales and profits, thanks in part to the addition of the results of Ebiden, a British lingerie manufacturer acquired as a subsidiary in April of last year.
In the domestic Wacoal business, sales of its flagship bras, including campaign items, and premium brand items, performed well. Sales of shorts, which were further promoted in-store, also performed well. Furthermore, the Wing brand expanded its collaborative product development with a major client. As a result, overall segment sales were flat compared to the previous fiscal year.
In the Wacoal overseas business, sales in the U.S. business exceeded the previous year's level due to strong performance of the mainstay product, Plager, and growth in online sales and the Canadian business. Growth in the Chinese business slowed due to slowing economic growth and anti-Japanese demonstrations, but sales also exceeded the previous year's level due to improved sales capabilities and an increase in the number of stores.
On the other hand, sales at the Peach John business fell short of the previous year's level due to a backlash from last year's TV commercial sales expansion and sluggish sales in outerwear and miscellaneous goods. Due in part to the impact of recording impairment losses on intangible fixed assets, the company posted an operating loss of 2.701 billion yen for the fiscal year.
In the overseas textile business, sales were sluggish due to a noticeable decline in demand across Asia as a result of slowing European and American economies and domestic demand in China. Furthermore, the impact of the Thai floods in the first half of the year remained on both production and sales, making restructuring the business a challenge. Overall sales for the textile business are expected to decrease 1.0% year-on-year to 632.2 billion yen, and operating income is expected to decrease 4.6% to 43.2 billion yen.
Next fiscal year will see the start of a new three-year medium-term plan (FY2013-2015), with this fiscal year being the first year. Sales are expected to increase 8.4% year-on-year to 192.0 billion yen, operating income to increase 42.0% to 11.5 billion yen, income before income taxes to increase 13.8% to 12.0 billion yen, and net income attributable to shareholders of the company to increase 4.9% to 8.0 billion yen.
In the domestic Wacoal business, sales of its flagship bras, including campaign items, and premium brand items, performed well. Sales of shorts, which were further promoted in-store, also performed well. Furthermore, the Wing brand expanded its collaborative product development with a major client. As a result, overall segment sales were flat compared to the previous fiscal year.
In the Wacoal overseas business, sales in the U.S. business exceeded the previous year's level due to strong performance of the mainstay product, Plager, and growth in online sales and the Canadian business. Growth in the Chinese business slowed due to slowing economic growth and anti-Japanese demonstrations, but sales also exceeded the previous year's level due to improved sales capabilities and an increase in the number of stores.
On the other hand, sales at the Peach John business fell short of the previous year's level due to a backlash from last year's TV commercial sales expansion and sluggish sales in outerwear and miscellaneous goods. Due in part to the impact of recording impairment losses on intangible fixed assets, the company posted an operating loss of 2.701 billion yen for the fiscal year.
In the overseas textile business, sales were sluggish due to a noticeable decline in demand across Asia as a result of slowing European and American economies and domestic demand in China. Furthermore, the impact of the Thai floods in the first half of the year remained on both production and sales, making restructuring the business a challenge. Overall sales for the textile business are expected to decrease 1.0% year-on-year to 632.2 billion yen, and operating income is expected to decrease 4.6% to 43.2 billion yen.
Next fiscal year will see the start of a new three-year medium-term plan (FY2013-2015), with this fiscal year being the first year. Sales are expected to increase 8.4% year-on-year to 192.0 billion yen, operating income to increase 42.0% to 11.5 billion yen, income before income taxes to increase 13.8% to 12.0 billion yen, and net income attributable to shareholders of the company to increase 4.9% to 8.0 billion yen.
