Toho Lamac Co., Ltd. Revises Earnings Forecast — Swings to Mid-Term Loss

Toho Lamac Co., Ltd. Revises Earnings Forecast — Swings to Mid-Term Loss

Toho Lamac Co., Ltd. (TSE:7422) has downwardly revised its earnings forecast for the six-month period ending June 20, 2026, citing currency headwinds in its footwear business and cryptocurrency evaluation losses that offset strong real estate performance.

The company raised its revenue guidance by JPY 219M on robust rental and resale income from its real estate business, which significantly exceeded plan. However, the footwear segment faced steeper-than-anticipated yen weakness, driving up cost of goods sold and pushing operating profit into a JPY 11M loss. Ordinary income deteriorated further to a JPY 53M loss after recording cryptocurrency evaluation losses and other non-operating expenses. The interim net loss reached JPY 7M despite a JPY 11M reversal of executive severance provisions recorded as extraordinary income.

For investors, the revision underscores operational challenges in the footwear division amid currency volatility, partially offset by resilient real estate fundamentals. The swing from profitability to mid-term losses reflects both structural headwinds in manufacturing and exposure to volatile asset classes. Notably, management maintained its full-year earnings forecast unchanged, suggesting confidence in recovery in the second half. International investors should monitor currency impacts on the footwear segment and any further cryptocurrency-related adjustments in coming quarters.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.