Onward Holdings said Friday that it saw lower net profit and sales for the first quarter but said it is still on track to post higher earnings for the full year.
Onward’s net profit for the three months ended May 31 plummeted 19.8 percent to 2.86 billion yen, or $25.9 million at average exchange rates for the period.
First-quarter operating profit grew 12.3 percent to 4.94 billion yen, or $44.73 million. Presumably one-time costs bit into the bottom line but a spokesman could not be reached for further explanation.
Onward’s first-quarter sales fell 4.7 percent on the year to 65.51 billion yen, or $592.89 million.
The current fiscal year is the first in Onward’s current midterm plan, through which it plans to increase the product value and expand customer service to stabilize its earnings growth. In addition to this, the company is strengthening areas such as e-commerce, which it expects to have high profitability and anticipated growth.
The company, which owns Jil Sander and ICB, left unchanged its guidance for the 12 months ending Feb. 28, 2017. It expects net profit to grow 5.2 percent to 4.5 billion yen, or $40.01 million at current exchange rates.
Onward predicts its operating profit will grow 19.1 percent to 4.5 billion yen, or $40.01 million.
It is forecasting a yearly sales contraction of 3.6 percent to 254 billion yen, or $2.26 billion.