Onward Holdings announced its consolidated financial results for the fiscal year ending February 2013 on April 5th. Sales increased 6.6% year-on-year to ¥258,369 million, operating income increased 2.2% to ¥11,192 million, and ordinary income increased 0.6% to ¥13,405 million. Net income rose 27.6% to ¥4,503 million. This marks the third consecutive fiscal year of profit growth.
In terms of domestic operations, the core company Onward Kashiyama saw notable earnings growth. By brand, highly profitable core brands and, by channel, new distribution businesses such as online businesses performed well. While sales fell short of the target, the improvement in gross profit margins significantly boosted profits. Cost reviews, including thorough expense management in line with sales trends, also had a positive effect. Sales for the apparel-related business alone were ¥242.675 billion, and operating profit was ¥14.489 billion.
On the other hand, overseas operations recorded a significant decline in profits, falling far short of sales targets. Despite aggressive business expansion in Europe and Asia, consumption slowed sharply due to the worsening economic environment and political uncertainty, leaving challenges for future development.
Going forward, Onward Holdings plans to further restructure its domestic business, including shifting personnel to new businesses and consolidating administrative tasks. Regarding its pending overseas business, improvements to its organization and operations have already been implemented. With the market recovering, the company expects a significant improvement in profits.
For the next fiscal year, Onward Holdings forecasts sales of ¥273 billion, up 5.7% year-on-year, operating profit of ¥12.9 billion, up 15.3%, ordinary profit of ¥14.8 billion, up 10.4%, and net profit of ¥5.0 billion, up 11.0%. We expect to see profit growth for the fourth consecutive period.
In terms of domestic operations, the core company Onward Kashiyama saw notable earnings growth. By brand, highly profitable core brands and, by channel, new distribution businesses such as online businesses performed well. While sales fell short of the target, the improvement in gross profit margins significantly boosted profits. Cost reviews, including thorough expense management in line with sales trends, also had a positive effect. Sales for the apparel-related business alone were ¥242.675 billion, and operating profit was ¥14.489 billion.
On the other hand, overseas operations recorded a significant decline in profits, falling far short of sales targets. Despite aggressive business expansion in Europe and Asia, consumption slowed sharply due to the worsening economic environment and political uncertainty, leaving challenges for future development.
Going forward, Onward Holdings plans to further restructure its domestic business, including shifting personnel to new businesses and consolidating administrative tasks. Regarding its pending overseas business, improvements to its organization and operations have already been implemented. With the market recovering, the company expects a significant improvement in profits.
For the next fiscal year, Onward Holdings forecasts sales of ¥273 billion, up 5.7% year-on-year, operating profit of ¥12.9 billion, up 15.3%, ordinary profit of ¥14.8 billion, up 10.4%, and net profit of ¥5.0 billion, up 11.0%. We expect to see profit growth for the fourth consecutive period.
