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Onward Q1 Net Profit Spikes 36.5%

A tax-related gain boosted net earnings while sales increased 2.8 percent.

TOKYO — Onward Holdings said Friday that its first-quarter net profit jumped 36.5 percent, due largely to a benefit it received by reorganizing its tax structure.
 
The retailer’s net profit for the three months ended May 31 totaled 3.84 billion yen, or $39.33 million at average exchange rates for the period. Onward owns such brands as Chacott and Jil Sander.
 
The company said its first-quarter operating profit increased 2.8 percent to 6.39 billion yen, or $65.43 million.
 
Net sales for the period grew 6.8 percent to 72.17 billion yen, or $739.06 million.

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Onward said that while consumers are still saving, the expectation of economic recovery has led to a more positive and stable mindset. This, the company said, has led to increased sales both in Japan and abroad, particularly in European markets.
 
Onward left unchanged its guidance for the twelve months ending February 28, 2014. It expects net profit to grow 11 percent to 5 billion yen, or $50.05 million at current exchange rates. The retailer is predicting operating profit will increase 15.3 percent to 12.9 billion yen, or $129.13 million. It is expecting sales growth of 5.7 percent to 273 billion yen, or $2.73 billion.