BAROQUE JAPAN LIMITED has sharply downgraded its consolidated earnings forecast for the fiscal year ending February 2027, changing its forecast from a profit to a loss. Weak performance by its core brands and problems with its new e-commerce system were cited as factors behind the move into the red.
BAROQUE JAPAN LIMITED revised down its consolidated earnings forecast for the fiscal year ending February 2027. Under the revised forecast, revenue is ¥50.8 billion, down 1.3% year on year, operating profit is ¥111 million, down 65.4% year on year, and net income is expected to be a loss of ¥696 million, with final profit expected to change from a profit forecast to a loss.
Actual results for the March-August period were revenue of ¥23.4 billion, down 5.4% year on year, an operating loss of ¥940 million and a net loss of ¥1.4 billion. The decision to close flagship stores in response to higher rents and a decline in inbound spending by Chinese visitors also had an impact.
As part of its recovery efforts, the company says shipping delays in its e-commerce operations had been resolved during the first half, and has outlined plans to rebuild its brands, including strengthening denim offerings at Moussy and increasing communications for Raguag Gem. The US business posted higher revenue than in the previous year but lower profit due to rising costs, while the closure of its directly operated New York store means its overseas stores now consist solely of franchise locations.
The consolidated results for the March-August 2026 period are also listed as revenue of ¥23.4 billion, an operating loss of ¥94 million and a net loss of ¥1.4 billion. The company has outlined plans to transform its management structure and improve efficiency toward the second half, including reducing inefficient expenses.
Affected by the closure of flagship stores and problems with its e-commerce operations, BAROQUE JAPAN LIMITED is expected to accelerate measures aimed at recovering performance in the second half.