TOKYO — Onward Holdings said Friday that its full-year net profit grew by 1.8 percent on an investment gain as it registered slides in sales and operating profit.

Net profit for the twelve months ended Feb. 29 came in at 4.28 billion yen, or $35.45 million at average exchange rates for the period. This was just under its forecast of 4.3 billion yen, or $35.63 million.

Operating profit for the year fell 34.1 percent to 3.78 billion yen, or $31.3 million.

Yearly sales were down 6.4 percent to 263.52 billion yen, or $2.18 billion. A spokesman for the company said the lower sales and operating profit were largely due to poor economic conditions in Europe and the Middle East, as well as an economic slowdown in China. He said lower sales in Japan stemmed from a trend of consumer saving and people being more careful about their purchases. The company also said that a mild winter in Japan stifled sales of winter clothing.

Onward released its guidance for its current fiscal year, ending Feb. 28, 2017. It is expecting net profit to rise 5.2 percent to 4.5 billion yen, or $37.34 million at current exchange rates.

The company is predicting operating profit will grow by 19.1 percent to match its net at 4.5 billion yen, or $37.34 million.

Onward forecasts a sales decline of 3.6 percent to 254 billion yen, or $2.11 billion.