Backstage at Jil Sander RTW Fall 2017

TOKYOOnward Holdings said Friday that its full-year net profit grew 10.9 percent. The company’s yearly operating profit was also up, despite a drop in sales.

For the 12 months ended Feb. 28, Onward posted a net profit of 4.74 billion yen, or $43.9 million at average exchange rates for the period.

The retailer’s operating profit gained 11.3 percent on the year, totaling 4.20 billion yen, or $38.9 million.

Net sales, however, dropped 7.1 percent to 244.90 billion yen, or $2.27 billion.

This latest fiscal year was the first in Onward’s current medium-term management plan, which aims for stable earnings growth by increasing the value of its core brands and expanding customer service. The retailer is also focusing its efforts on projects that it expects will yield high profitability, such as e-commerce, and shifting management resources to growth businesses. In addition, the company is closing unprofitable stores and making organizational changes, such as reforming its distribution systems.

Onward also released guidance for its current fiscal year, ending Feb. 28, 2018. The company expects net profit to grow 11.7 percent to 5.3 billion yen, or $47.1 million at current exchange rates.

The company predicts yearly operating profit will jump 35.6 percent to 5.7 billion yen, or $50.7 million.

Onward forecasts that sales will continue to fall, slipping an additional 2.3 percent to 239.3 billion yen, or $2.13 billion.

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