TOKYO — Onward Holdings said Friday that its net profit for the year ended Feb. 28 jumped 27.6 percent, due largely to a benefit it received by reorganizing its tax structure.
The company’s net totaled 4.50 billion yen, or $55.12 million at average exchange rates for the period. This is up from 3.53 billion yen, or $44.75 million, for the previous fiscal year.
Onward’s operating profit grew 2.2 percent to 11.19 billion yen, or $136.99 million.
Net sales for the 12 months increased by 6.6 percent to total 258.37 billion yen, or $3.16 billion.
In Japan, Onward said that it had seen success with new sales channels, including its online business.
The company also said that despite an aggressive international expansion plan, apparel sales outside of Japan had fallen far short of its forecasts. It attributed this to a rapid deceleration in consumer spending brought on by a deteriorating global economy and political uncertainties.
Onward also released its guidance for the current fiscal year, ending Feb. 28, 2014. The company expects net profit will grow 11 percent to 5 billion yen, or $52.75 million at current exchange rates. It predicts operating profit will increase by 15.3 percent to 12.9 billion yen, or $136.10 million. Onward is forecasting a 5.7 percent sales increase for the year, with net sales to total 273 billion yen, or $2.88 billion.