Onward 9-Month Net Grows 24.2%

Sales increased 7.4 percent but the company warned that it has seen consumer spending take a hit since October.

TOKYO — Onward Holdings said Friday that its nine-month net profit grew at a double-digit pace as it booked gains from reorganizing its tax structure.
The company’s net profit for the nine months ended Nov. 30 rose 24.2 percent to 5.76 billion yen, or $58.55 million at average exchange rate for the period.
Onward said its nine-month operating profit fell by 5.4 percent to 10.12 billion yen, or $102.95 million. It attributed this to costs associated with reorganization it has undergone in an effort to strengthen its business and increase customer satisfaction.
The company’s sales increased 7.4 percent to 205.44 billion yen, or $2.09 billion.
The company behind such brands as Jil Sander and Chacott said that it has been seeing some economic recovery in Japan, thanks to a combination of government stimulation measures, a weaker yen, stronger corporate earnings and increased consumer spending. But it also warned it has seen consumer spending take a hit since October, which it attributed to poor weather and a looming retail tax increase due next April.

However, the company said the future of the world economy remains uncertain, with lingering debt problems in Europe and slowing economic growth in developing countries.

Onward left unchanged its guidance for the fiscal year ending Feb. 28. It is expecting its net profit to grow 11 percent to 5 billion yen, or $47.68 million at current exchange rates. The company forecasts its operating profit will grow 15.3 percent to 12.9 billion yen, or $123 million. It is predicting a 7.2 percent increase in net sales, to 277 billion yen, or $2.64 billion.