Wacoal Holdings Corp. has announced that it will postpone the release of its next medium-term management plan to May 2026. Originally scheduled for publication within 2025, the company determined that continuing market contraction made it difficult to ensure the feasibility and credibility of a plan based on previous assumptions. For the current fiscal year, Wacoal will steadily implement a revised plan. The current medium-term plan will conclude in fiscal 2025 (ending March 2026).
While the company has achieved certain results through the disposal of owned real estate, reduction of strategic shareholdings, and improvement of capital efficiency, it has revised downward its consolidated earnings forecast for the fiscal year ending March 2026. This is due to sluggish sales of women’s innerwear in major markets and continued challenging conditions in the U.S. and China.
Revenue has been revised downward by ¥13.7 billion from the initial plan, reflecting underperformance of domestic growth initiatives and lost opportunities caused by a warehouse fire at Bravissimo Group Limited overseas. Operating profit, initially projected at ¥4.7 billion, has been revised to a ¥1.5 billion loss, citing domestic revenue decline, strategic investments, and a sharper-than-expected market downturn in China.
In response to the revised earnings forecast, the company decided to delay the announcement of its new medium-term plan. President Masaaki Yajima stated, “With the decline in department store locations and the shrinking market for wired bras, our strengths are no longer effective,” adding, “Repeating the same approaches and thinking won’t work. We need time to fundamentally rethink our business model.”
Going forward, Wacoal aims to achieve its revised plan by analyzing and addressing the factors behind its initial shortfall. Simultaneously, it will review the current plan and assess its outcomes, consider highly effective and credible measures using external insights, and conduct multifaceted analysis of market conditions and its business structure to rebuild a medium- to long-term strategy that enhances corporate value.