Baroque Japan Limited sharply revised down its consolidated earnings forecast for the fiscal year ending February 2027. The downturn in its core brands and problems with its new e-commerce system are expected to result in a shift from the forecast net profit to a net loss.
Baroque Japan Limited revised down its consolidated earnings forecast for the fiscal year ending February 2027. The revised forecast calls for revenue of ¥50.8 billion, down 1.3% from the previous fiscal year, operating profit of ¥111 million, down approximately 63%, and a net loss of ¥696 million, with net income turning from the profit forecast to a loss. The forecast differs substantially from the projection issued when the company announced its results for the previous fiscal year.
Results for the period from March through August of the fiscal year ending March 2026 were revenue of ¥23.4 billion, down 5.4% year on year, an operating loss of ¥904 million and a net loss of ¥1.4 billion. In addition to weakness in its core brands, problems with its newly introduced e-commerce system have been cited as a factor behind the widening losses.
The company is reviewing its store strategy in response to higher rents, including the closure of its flagship store, The Shelter Tokyo, and a decline in Chinese inbound visitors. It recorded an impairment loss of ¥555 million as an extraordinary loss. E-commerce shipping delays are said to have been resolved during the first half, and the business is reportedly showing signs of recovery.
As part of its efforts to rebuild, the company explained that revisions to product development and marketing strategies for AZUL BY MOUSSY led to some existing customers leaving. Department-store brands such as ENFÖLD and någonstans also remain weak. Meanwhile, the solid performance of Moussy-related brands has been highlighted.