CROSS PLUS INC. announced its interim results for the fiscal year ending January 2027, reporting a sharp decline in net sales to ¥28,555 million and operating profit to ¥232 million, while also revising its full-year forecast downward.
CROSS PLUS INC. announced its interim results for the fiscal year ending January 2027 on 11 September. Net sales were ¥28,555 million, down 2.3% year on year, operating profit was ¥232 million, down 75.0%, and interim net profit attributable to owners of the parent was ¥101 million, down 88.5%. Retail and lifestyle wholesale businesses grew, but sales declined as apparel wholesale to specialty stores remained sluggish.
On the earnings side, in the apparel wholesale business, purchasing costs rose due to higher raw material prices and the weaker yen, while price increases were not sufficiently passed on to customers, resulting in a lower gross profit margin. This led to a substantial decline in profit, while selling, general and administrative expenses also exceeded the level recorded in the same period of the previous year. Higher personnel expenses and increased variable costs, including sales commissions associated with retail sales growth, also weighed on results.
On the same day, CROSS PLUS INC. also announced downward revisions to its full-year earnings forecast. Net sales were reduced from the previous forecast of ¥63.0 billion to ¥61.0 billion, operating profit from ¥1.4 billion to ¥700 million, and net profit attributable to owners of the parent from ¥1.45 billion to ¥900 million.
For the full year, retail sales are expected to remain firm both at stores and online, while profit from apparel wholesale is expected to remain under pressure from the weaker yen and higher raw material costs, with rising purchasing costs weighing on earnings. In addition to the substantial decline in interim profit, the full-year operating profit forecast has also been halved.