Wacoal U.S., Europe Sales Down

On a local currency basis, sales at both Wacoal’s U.S. and European divisions were down in the quarter, ended June 30.  

The comparative extent and significance of the decline is difficult to analyze because the Japanese yen has depreciated against the dollar by about 60% (from late 2020 to first half 2024), and against European currencies as well. When measured solely on a yen basis, both operating income and total revenue were up in both the American and Europe divisions when compared to the same quarter last year.

The U.S. division of Wacoal reported operating income of 1.030 billion yen (about $6.8 million at current exchange rates) on revenue of 7.939 billion yen (about $52.3 million) in the three months ending June 30. In the same period last year the division earned 680 million yen on revenue of 7.857 billion yen.

The company explained that “sales from Wacoal International Corp. (U.S.) fell below the level of the corresponding period of the previous fiscal year on a local currency basis due to the impact of business withdrawal of Intimates Online, Inc.,” its Lively business. “Sales from Wacoal America, Inc., which distributes “Wacoal” brand, remained approximately at the same level as the level of the corresponding period of the previous fiscal year. This was mainly due to the sluggish sales from our retail stores caused by the restraint on purchases by certain wholesale stores, and the weak sales from our e-commerce business which were impacted by the sluggish customer visits, although sales of third-party e-commerce websites significantly exceeded such sales for the corresponding period of the previous fiscal year as a result of the positive impact of our aggressive advertising activities.”

The Japan-based company noted that “sales from Wacoal Europe Ltd. fell below the level of the corresponding period of the previous fiscal year on a local currency basis due to the weak sales from the specialty stores and department stores in the United Kingdom and the United States, while sales from Europe, mainly in Germany and France, achieved growth. By items, while sales from our women’s innerwear products were strong, sales from our swimwear products significantly fell below such sales for the corresponding period of the previous fiscal year, which drove down the overall sales.” Wacoal’s Europe’s brands, some of which are sold in the U.S., include Fantasie, Freya, Elomi and Goddess.

Wacoal Europe reported operating income of 642 million yen on revenue of 6.164 billion yen for the three months ended June 30, compared to operating income of 628 million yen on revenue of 5.551 billion yen in the same quarter in 2023. — NM

Above, Freya Mali Beach Underwire Swimsuit and Fantasie High Waist Bikini on the Wacoal Europe websites.