Baroque Japan Limited Revises Earnings Forecast — Operating Profit Down 91.8%
Baroque Japan Limited (TSE:3548) has downwardly revised its earnings forecast for the fiscal year ending February 2027, citing operational headwinds and one-time charges that will swing the company to a net loss.
| Item | Before | After | Change | Change % |
|---|---|---|---|---|
| Revenue | JPY 53.0bn | JPY 50.8bn | JPY -2.1bn | -4.0% |
| Operating Profit | JPY 1.4bn | JPY 0.1bn | JPY -1.2bn | -91.8% |
| Ordinary Income | JPY 1.3bn | JPY -0.04bn | JPY -1.3bn | — |
| Net Profit | JPY 0.7bn | JPY -0.7bn | JPY -1.4bn | — |
| EPS | JPY 20.63/share | JPY -19.30/share | JPY -39.93/share | — |
The company attributed the revision to multiple factors. While the FB and SB brands maintained solid performance, the AZUL BY MOUSSY turnaround remains in progress. A new system implemented in June caused e-commerce shipping delays. Product valuation losses at the core SC brand and supply-chain cost inflation eroded gross margins. Additionally, Baroque recorded a JPY 555M impairment loss on the closure of The SHEL’TTER TOKYO store at Omotesando, driven by rising rents and declining Chinese inbound tourism. Deferred tax asset write-downs also weighed on results.
The revision reflects a sharp deterioration in profitability, with operating profit collapsing to near-breakeven and ordinary income (keijo rieki)—a Japan-specific metric combining operating profit and non-operating items—turning negative. Net profit swings to a loss of JPY 696M. Management expects second-half performance to exceed the first half, though full-year results will fall short of prior guidance.
The company stated it does not plan to revise its annual dividend forecast of JPY 38/share despite the earnings downgrade.
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.