For the six months ended September 30, 2026, net sales declined 1.8 per cent year on year (YoY) to ¥64.08 billion (~$405.99 million, as per conversion rate of $1 = ¥157.8355 as on November 6, 2026). Operating profit surged 81.3 per cent to ¥5.78 billion (~$36.62 million), while ordinary profit rose 82.3 per cent to ¥5.84 billion (~$37.00 million).
Japan’s Gunze Limited maintained its FY27 forecast for net sales of ¥132 billion (~$836.31 million) and operating profit of ¥8.8 billion (~$55.75 million), as first-half results met expectations.
For the six months ended September 30, 2026, sales fell 1.8 per cent to ¥64.08 billion (~$405.99 million), while operating profit surged 81.3 per cent, supported by improved margins and apparel
Profit attributable to owners of the parent was ¥4.32 billion (~$27.37 million), compared with a loss of ¥658 million (~$4.17 million) a year earlier. Gross profit increased to ¥22.18 billion (~$140.53 million) from ¥20.87 billion (~$132.23 million), lifting the gross margin to 34.6 per cent from 32.0 per cent, while operating margin expanded to 9.0 per cent from 4.9 per cent.
Basic earnings per share reached ¥137.69 (~$0.87), compared with a loss per share of ¥20.27 (~$0.13) in the prior-year period. Diluted earnings per share was ¥137.45 (~$0.87), according to the company’s consolidated financial results.
Functional solutions drives earnings growth
The functional solutions segment delivered net sales of ¥26.11 billion (~$165.43 million), up 10.3 per cent YoY, and operating profit of ¥5.25 billion (~$33.26 million), up 56.9 per cent. Plastic films benefited from the time lag between selling-price and material-cost changes, improved overseas profitability and lower product costs, while engineering plastics were supported by rising semiconductor-related demand.
Medical segment sales fell 5.3 per cent to ¥6.14 billion (~$38.90 million), while operating profit declined 25.2 per cent to ¥709 million (~$4.49 million). Strong domestic sales of adhesion-prevention agents and absorbable medical materials were outweighed by the downsizing of the medical laser business and restrained purchasing in China under medical cost-containment policies.
Apparel restructuring lifts profitability
Apparel sales declined 10.2 per cent to ¥26.75 billion (~$169.48 million), affected by reduced retail floor space at mass retailers and subdued consumer spending. However, operating profit rose 358.6 per cent to ¥1.14 billion (~$7.22 million), aided by production and logistics consolidation, streamlined indirect operations, brand rationalisation and price revisions.
Within the direct-to-consumer channel, Asedoron sales remained strong, although revenue decreased slightly following a review of promotional activities. Profitability nevertheless improved. The lifestyle creations business posted sales growth of 1.1 per cent to ¥5.90 billion (~$37.38 million), while operating profit increased 27.7 per cent to ¥606 million (~$3.84 million), supported by real-estate facility renovations and higher sports-club sales.
Balance sheet and cash flow
As of September 30, 2026, total assets stood at ¥153.97 billion (~$975.51 million), while net assets were ¥111.79 billion (~$708.27 million) and the equity-to-asset ratio was 71.3 per cent. Cash and cash equivalents decreased by ¥598 million (~$3.79 million) from the fiscal year-end to ¥9.34 billion (~$59.18 million).
Net cash generated from operating activities increased to ¥7.35 billion (~$46.57 million), while investing activities used ¥2.90 billion (~$18.37 million), primarily for non-current asset purchases. Financing activities used ¥5.23 billion (~$33.14 million).
FY27 outlook maintained
Gunze maintained its forecast for the fiscal year ending March 31, 2027, as first-half results were broadly in line with expectations. The company continues to expect net sales of ¥132 billion (~$836.31 million), up 0.8 per cent YoY; operating profit of ¥8.8 billion (~$55.75 million), up 80.3 per cent; ordinary profit of ¥8.4 billion (~$53.22 million), up 70.7 per cent; and profit attributable to owners of the parent of ¥5.2 billion (~$32.95 million), up 921.6 per cent.
Fibre2Fashion News Desk (MS)
