8029.T

2025 Full Year Consolidated Results Summary

• The full year 2025 consolidated results were a decrease in both revenue and profit year-over-year, as strong domestic performance could not fully offset weak results from overseas operations. Total consolidated net sales reached 52.117 billion yen, down 4.8% year-over-year; operating profit was 1.759 billion yen, down 30.5% year-over-year; ordinary profit was 2.086 billion yen, down 27.6% year-over-year; net profit attributable to owners of parent was 1.474 billion yen, down 23.4% year-over-year. All profit metrics missed the full year revised guidance due to increased promotional sales lowering overall profit margins.
• Total assets at end of 2025 were 64.042 billion yen, net assets were 40.456 billion yen, and equity ratio was 63.2%. Operating cash flow was +2.546 billion yen, investing cash flow was -0.722 billion yen, financing cash flow was -1.360 billion yen, ending cash and cash equivalents balance was 8.69 billion yen. The 2025 year-end dividend was set at 100 yen per share, for a total dividend payout of 0.778 billion yen.

Domestic Operations Highlights

• Core imported brands IL BISONTE, Marimekko, and A.P.C. met planned new store openings, and sales for these brands including new stores remained solid. However, the domestic apparel brand segment struggled: regular-price sales of summer and winter goods held up, but unseasonable warm weather hurt spring and autumn transition season sales, leading to increased promotional activity. Wholesale sales to specialty and select stores also weakened year-over-year.
• Per the medium-term management plan, LOOK has a target of opening 30 new core brand stores in Japan over 5 years starting 2024. 25 new stores were opened across 2024 and 2025, putting the plan ahead of schedule.
• As of end-December 2025, LOOK operates 241 domestic physical stores, a net increase of 3 stores year-over-year (offset by closing unprofitable stores after new openings). Of these 241 stores, IL BISONTE has 55 locations, Marimekko has 41, and A.P.C. has 37. New brand SMYTHSON launched sales in January 2025, and pop-up operations were held for new domestic brand STRATHBERRY in 2025 ahead of full launch.

Overseas Operations Highlights

• South Korea has seen four consecutive years of declining performance for both the overall fashion market and LOOK's local operations. In 2025, political instability (martial law declaration, presidential impeachment) and US reciprocal tariffs starting in April created tough market conditions through October, but gradual recovery driven by government economic stimulus emerged from November onwards, especially in department store channels. LOOK's local subsidiary ID LOOK also saw a gradual recovery, but full year results still missed prior year levels due to insufficient recovery of earlier losses. Weak autumn sales and negative foreign exchange rate impacts dragged down both revenue and profit in 2025.
• South Korea also has a medium-term target of 30 new store openings over 5 years starting 2024. 15 new stores were opened across 2024 and 2025, which matches the planned opening pace.
• In Europe, IL BISONTE S.p.A. (Italy) saw solid sales growth at its two directly operated Italian stores after strengthening direct store operations. Wholesale sales to Japan and the US performed well, but European wholesale struggled. The Italian business recorded losses in both 2024 and 2025.
• In other overseas markets, IL BISONTE wholesale and retail operations in the US performed solidly, driving revenue growth and narrowing operating losses.

• For the full year 2026 (ending December 2026), consolidated net sales guidance is 46.0 billion yen, which represents a 6.117 billion yen (11.7%) decrease from 2025. The large decrease is driven by an expected 8.0 billion yen revenue decline in South Korea due to the expiration of the exclusive distribution agreement between ID LOOK and SMCP Holding SAS.
• Operating profit guidance for 2026 is 1.7 billion yen, a 59 million yen (3.4%) decrease from 2025. Ordinary profit guidance is 2.0 billion yen, an 86 million yen (4.1%) decrease from 2025. Net profit attributable to owners of parent guidance is 1.6 billion yen, a 126 million yen (8.5%) increase from 2025.
• The 2026 year-end dividend guidance is maintained at 100 yen per share, with a planned payout ratio of 48.7%.
• In Japan, 9 new core brand stores are planned for 2026, bringing total 3-year new openings to 34, which will exceed the original 5-year medium-term target of 30 new stores. LOOK will continue to open new core brand stores and close unprofitable stores to improve profitability.
• In South Korea, 7 new stores are planned for 2026, bringing total 3-year new openings to 22, maintaining progress toward the 5-year medium-term target of 30 new stores. 2026 will see a strategic shift to prioritize profit over revenue growth to offset the large negative impact from the expired SMCP agreement. Two new initiatives are launching: (1) wholesale distribution of A.P.C. GOLF across Oceania, Southeast Asia, and East Asia, and (2) launch of the French contemporary womenswear brand SOEUR for the 2026 spring/summer season, targeting the strong contemporary womenswear segment in South Korea.
• For the Italian IL BISONTE business, LOOK will improve selling, general and administrative expense efficiency to return to profitability in 2026.
• For 2026, the company plans to expand sales and profit centered on the Japanese market, grow sales in Europe and North America, strengthen business in new markets including Southeast Asia and East Asia, and solidify operations in South Korea while prioritizing profit and pursuing sales growth with core brands. Going forward toward the 2028 end of the medium-term plan, LOOK will pursue targeted investments in high-potential markets to drive long-term results.

Geographic segments (pre-intersegment elimination):

1. Japan: Revenue reached 100.3% of the prior year level, operating profit reached 96.2% of the prior year level. Japan accounts for 44.7% of the company's total apparel-related revenue as of 2025, up from 41.0% in 2023 and 42.7% in 2024.
2. South Korea: Revenue reached 90.9% of the prior year level, operating profit reached 55.2% of the prior year level.
3. Europe: Revenue grew to 104.9% of the prior year level, with an operating loss of 183 million yen (narrowed from an operating loss of 236 million yen in the prior year).
4. Other Overseas: Revenue grew to 112.0% of the prior year level, with an operating loss of 26 million yen (narrowed from an operating loss of 57 million yen in the prior year).
5. Other Business: Revenue decreased in production and OEM segments, but operating profit increased overall driven by growing third-party revenue in the logistics segment.

Channel segments:

1. Combined Group EC penetration reached 15.6%, up 1.1 percentage points year-over-year, with total EC revenue growing year-over-year.
2. Domestic: Physical store revenue increased driven by new store openings; domestic EC penetration reached 18.5%. Direct-operated stores account for 55% of total domestic physical store revenue.
3. Overseas: EC revenue increased; overseas EC penetration reached 13.2%, with total overseas EC revenue reaching 108.2% of the prior year level driven by expanded promotional sales on online marketplaces.

• Unseasonable weather driven by climate change hurt transition season apparel sales (spring and autumn) in the domestic market, increasing promotional sales and lowering overall profit margins in 2025, and similar weather-related demand volatility remains a risk for future results.
• South Korean market performance faces ongoing risks from political instability, macroeconomic volatility, US trade policy changes (such as reciprocal tariffs), and foreign exchange rate fluctuations, which have pressured results for four consecutive years as of 2025.
• European wholesale operations for IL BISONTE have struggled in recent years, and the Italian IL BISONTE business recorded consecutive losses in 2024 and 2025, creating execution risk for the planned 2026 profitability turnaround through cost efficiency improvements.
• The expiration of the exclusive distribution agreement with SMCP Holding SAS in South Korea will lead to a large 8 billion yen expected year-over-year revenue decline in 2026, creating risk that new revenue initiatives in South Korea (SOEUR launch, A.P.C. GOLF wholesale expansion) will not offset this impact fast enough to meet profit targets.
• Domestic wholesale sales to specialty and select stores have weakened for two consecutive years as of 2025, creating ongoing risk to domestic segment profitability.

No question and answer section was included in the provided transcript.