Goldwin, which owns the rights to The North Face in Japan and Korea, reported strong improvements in operating earnings for the second quarter and six months, boosted by a pickup in sales from The North Face.
Sales in the quarter climbed 10.2 percent to ¥31,711 million ($206 mm) from ¥28,766 million. Operating profit rose 44.6 percent to ¥4,880 million from ¥3,375 million a year ago.
Earnings slid 14.2 percent in the second quarter ended September 30 to ¥3,609 million ($24.5 mm) from ¥4,205 million due to foreign currency headwinds.
In the six months, sales rose 4.2 percent to ¥55,589 million. Operating profit jumped 33.5 percent to ¥6,959 million. Net profits declined 13.6 percent to ¥6,798 million.
Goldwin said of the six-month results, “During the six months ended September 30, 2025, the Japanese economy experienced the impact of a record-breaking heat wave that temporarily curbed demand for going out at times. However, actual demand for summer products generally remained strong. Against a backdrop of rising inflation, the establishment of selective consumption, and the normalization of climate change, the trend of consumers prioritizing not only price but value in terms of functionality, quality and experiential value has further grown in momentum.
“In this environment, the company-maintained sales at full price with a low discount rate, mainly for standard products, during the clearance period in July. In August, inventory clearance of summer products progressed against the backdrop of a continued heatwave, and in September, the shift to fall and winter goods progressed steadily. As a result, we were able to optimize sales opportunities while improving inventory rotation.”
Goldwin added, “Sales of The North Face, our mainstay brand, exceeded those of the previous fiscal year in both apparel and gear as actual demand recovered, especially at directly managed stores. In the heatwave environment, sales of T-shirts, lightweight shells, and other products were strong, and inbound demand, mainly in East Asia, drove growth, particularly in the lifestyle area. In addition, the company strengthened its promotion of the “Climate Adaptation Products” series, which applies the functionality cultivated in the mountaineering and outdoor area to daily life. The proposal of functional value centered on comfort aligned with actual demand at stores. Furthermore, the high level of demand from inbound travelers, especially at directly managed stores in urban areas, also contributed.”
Goldwin said at The North Face that the apparel category returned to growth after showing a decline in the first quarter. Apparel sales of The North Face product grew 2.9 percent in the six months to ¥32,089 million. The North Face gear sales climbed 8.1 percent to ¥9,751 million.
Goldwin said products designed for hot weather (tees and lightweight shells) drove sales for The North Face. Demand for mountain climbing, hiking, running, and travel “also remains steady.” The performance segment was below the previous year, but gear and shoes are “on a recovery trend.” Among fashion offerings, The North Face’s Purple Label saw double-digit YoY growth.
Goldwin said of The North Face, “The combination of consumer behavior aligned with actual demand seasons and effective climate-adaptive proposals” indicates progress is on track with the full-year plan.
Goldwin said overall net sales, gross profit and operating profit benefited from new store openings and existing store floor space expansions. Goldwin said expanding stores offers a “deeper lineup of SKUs adapted to temperature fluctuations (mid-layers, lightweight down jackets, etc.) to drive sales growth by maintaining unit prices and increasing inventory turnover.”
Goldwin opened 10 new stores in the first half, mainly with Goldwin and The North Face. Goldwin ended the half with 168 stores, including 104 under The North Face, 14 under Goldwin and 50 under other brands.
Goldwin’s owned and licensed brands also include Helly Hansen, Woolrich, Icebreaker, Macpac, Fischer, Sunski, Neutralworks, Play Earth Kids, Canterbury, Speedo, And Per Se, Allbirds, and Profecio.
The operating profit improvement in the six months benefited from an improvement in gross margins by 1.5 percentage points, to 51.4 percent. Selling, general, and administrative expenses were ¥21,594 million, up 0.8 percent year-over-year, due to higher advertising expenses and rent-related costs. However, they declined as a percentage of sales to 38.8 percent from 40.1 percent.
Net sales at Youngone Outdoor Corporation remained at the same level as the previous fiscal year; however, the impact of external factors, including exchange rate fluctuations and cost increases, led to a decrease in profits. As a result, the share of profit of entities accounted for using the equity method was ¥2,075 million, a 55.6 percent decrease, which impacted the net profit.
Goldwin said its forecast for the year remains unchanged. Guidance calls for sales to increase 6.2 percent to ¥140,500 million, operating profits to advance 18.2 percent to ¥25,900 million, and net income to increase 3.9 percent to ¥25,400 million.
Image courtesy The North Face Purple Label
