Five fashion companies reported their full FY25 financial performance, ending in February and March 2025, over the months of April and May. With three 'Strong', one 'Moderate', and one 'Weak' performance, the reported year registered a strong fashion performance.

Strong: Growth In Both Sales & Profits

Onward Holdings (TYO: 8016)

In an early April announcement, Japan’s fashion group Onward Holdings reported a strong financial performance for the full year 2025, which ended on February 28, 2025.

The company’s net sales increased by 9.9 per cent year-on-year to ¥208.4 billion (~$1.44 billion). In addition to strong performance from brand businesses such as Nijyusanku, Jiyuku, Unfilo, Kashiyama, Chacott Cosmetics, and Pet Paradise, the increased use of the OMO service ‘Click & Try’ also contributed positively, the company claimed. However, net sales fell short of the forecast.

Despite the increase in net sales, the gross profit margin declined by 1.3 per cent year-on-year, mainly due to adjustments made to past-year merchandise inventory, which had increased during the recovery period following the COVID-19 pandemic. Meanwhile, the SG&A ratio declined by 0.2 per cent compared to last year, as wage hikes and other cost increases were absorbed through further streamlining of store operations, including the opening of more multi-brand stores and other measures.

As a result of the above, operating profit decreased by 9.8 per cent to ¥10.2 billion, while net profit rose by 28.8 per cent to ¥8.5 billion, achieving the forecast.

Boot Barn Holdings, Inc (NYSE: BOOT)

Irvine (California)-headquartered Boot Barn Holdings is another fashion company that delivered strong FY25 results. The company’s mid-May release also included performance reporting for the fourth quarter, which ended on March 29, 2025.

Fourth-quarter net sales increased by 16.8 per cent over Q4 FY24 to $453.7 million. Same-store sales rose by 6 per cent, with retail store same-store sales increasing by 5.5 per cent and e-commerce same-store sales increasing by 9.8 per cent. The company opened 21 out of a total of 60 new stores during the quarter, bringing the total store count to 459.

Net income stood at $37.5 million, or $1.22 per diluted share.

On a full-year basis, net sales increased by 14.6 per cent to $1.911 billion, including a 5 per cent rise in same-store sales—comprising a 5 per cent increase in retail store same-store sales and a 9.7 per cent increase in e-commerce same-store sales.

Net income for FY25 was $180.9 million, or $5.88 per diluted share, compared to $147 million, or $4.08 per diluted share, in FY24.

Projections for the first quarter ending June 28, 2025, were also shared: total sales are expected to reach $483 million to $491 million, representing growth of 14 per cent to 16 per cent over the same quarter last year. Gross profit is projected to remain between $183 million and $188 million, or approximately 37.9 per cent to 38.2 per cent of sales.

For the full FY26 ending March 28, 2026, the outlook includes: total sales of $2.070 billion to $2.150 billion, reflecting 8 per cent to 13 per cent growth over the reported year; gross profit between $747 million and $793 million, or approximately 36.1 per cent to 36.9 per cent of sales; net income of $169 million to $197 million; and the opening of 65 to 70 new stores.

Gunze Ltd (TYO: 3002)

The Japanese fashion group Gunze Ltd’s full fiscal net sales amounted to ¥137.117 billion (~$0.95 billion), growing 3.2 per cent over ¥132.885 billion (~$0.92 billion) in FY24. The full fiscal 2025, ended March 31, delivered a ‘strong’ performance with growth in operating profit, ordinary profit, and profit attributable to owners of the parent as well. The respective growths were 16.9 per cent, 20.8 per cent, and 22.9 per cent.

An increase of ¥4,231 million in net sales included the apparel business recording net sales of ¥60,782 million, up by 1.1 per cent compared to the previous fiscal.

Profit attributable to owners of the parent also increased by ¥1,169 million, mainly due to the recording of a gain on the sale of investment securities as a result of the sale of cross-shareholdings.

The FY26 (April 1, 2025, to March 31, 2026) forecast includes consolidated net sales of ¥140,000 (~$970.35) million, operating profit of ¥8,500 million, ordinary profit of ¥8,300 million, and profit attributable to owners of the parent of ¥2,800 million.

The Gunze Group plans to promote ‘VISION 2030 Stage 2’, covering the three-year period through to FY27, and strive to realise the ideal state the Gunze Group aims to achieve in 2030 through growth of core businesses and structural reforms without exceptions.

Moderate: Growth In Either Sales Or Profits

Adastria Co, Ltd (TYO: 2685)

The only fashion company with a ‘Moderate’ performance in this list was Japan’s Adastria Co, Ltd, which ended its fiscal on February 28, 2025.

The company’s consolidated net sales for the year amounted to ¥293,110 million (~$2,031.56 million), up 6.4 per cent year-on-year; operating profit was ¥15,510 million, down 13.9 per cent; ordinary profit stood at ¥15,964 million, down 13.2 per cent; and net income attributable to owners of the parent totalled ¥9,614 million, down 28.9 per cent.

Net sales for the Apparel and Sundry Goods-related business domestically rose 6.1 per cent to ¥278,575 million, owing to the development of trend-setting products, the cultivation of hit products, and promotional activities, including TV commercials and point redemption campaigns. The segment operates 1,554 stores as of the end of the fiscal, including 139 locations overseas. Today’s Special Co, Ltd, now integrated into Adastria Co, Ltd, which became a consolidated entity in July 2024, also contributed to the increase in net sales.

For the fiscal ending February 2026, the company forecasts consolidated net sales of ¥305,000 million, up 4.1 per cent; gross profit of ¥170,000 million, up 6.1 per cent; operating profit of ¥19,000 million, up 22.5 per cent; ordinary profit of ¥19,000 million, up 19 per cent; and net income attributable to owners of the parent of ¥12,400 million, up 29 per cent.

Weak: No Growth In Sales & Profits

Burberry Group Plc (LON: BRBY)

The solitary weak performance in this list was reported by the UK’s Burberry Group, which ended FY25 on March 29, and reported a revenue loss of 15 per cent at constant exchange rates (CER) and 17 per cent on a reported basis.

Revenue for the full year dropped from £2,968 million (~$3,995 million) in FY24 to £2,461 million (~$3,312.55 million), while retail comparable sales declined by 12 per cent. The comparable drop in H2 improved to 5 per cent versus 20 per cent in H1.

The gross margin of 62.5 per cent reflected a drop of 470 bps at constant rates and 520 bps on a reported basis, compared to last year. With adjusted net operating expenses dropping by 3 per cent at constant rates and 5 per cent on a reported basis, attributable loss stood at £75 million, compared to a profit of £270 million last year – representing a weak performance.

Now, the company’s focus in FY26 is to build on the early progress it has made in reigniting brand desire, as a key requisite to growing the topline. Burberry aims to deliver margin improvement with a continued focus on simplification, productivity, and cash flow.

Fibre2Fashion News Desk (WE SB)