Goldwin has revised down its consolidated earnings forecast for the fiscal year ending March 2027. Sales of its core The North Face logo products struggled, and results for April to September fell short of plan. With uncertainty remaining over the outlook for the second half, the company is taking measures including restraining promotional activities and shipments. In the short term, weak TNF sales are considered the main factor.
Goldwin has revised down its consolidated earnings forecast for the fiscal year ending March 2027. The sales forecast was reduced from ¥145.4 billion to ¥141.5 billion, and the operating profit forecast from ¥26.1 billion to ¥23.8 billion. Wholesale sales have struggled as unfavorable weather for TNF, slowing inbound demand and delayed demand for fall products coincided. The president pointed to the company’s excessive reliance on assumptions about TNF’s growth.
For April to September, sales were ¥56.0 billion, up 0.9% year on year, operating profit was ¥4.7 billion, down 31.7%, and net income was ¥5.5 billion, down 18.9%. Results were approximately ¥3.8 billion below the initial plan. While the company pursued growth investments, expenses for hiring, store openings and renovations, and sales promotions put pressure on profits.
The main factor behind the weak performance was sluggish TNF sales, with lifestyle products such as logo T-shirts failing to gain traction. Logo items had driven wholesale sales to major sporting-goods retailers, but the company noted that consumers are increasingly seeking highly functional products. The fact that its product development structure failed to keep pace also had an impact.
Over the medium to long term, the company plans to strengthen TNF’s product development structure and pursue quality-focused growth. It will increase the share of Summit Series products, make use of its materials development facilities, expand more premium products, and deepen collaboration with The North Face Purple Label. It also plans to review its medium-term five-year plan, which designates the fiscal year ending March 2029 as its final year.