Double-A lowers full-year earnings forecast amid Hong Kong slump

Wa (TSE:7683) announced a revision to its consolidated earnings forecast for the fiscal year ending January 31, 2025. The company now expects sales of ¥22.8 billion, down from the previous forecast of ¥23.485 billion. Operating profit is projected to be ¥1.67 billion, a decrease from the earlier estimate of ¥2.38 billion. Recurring profit is also revised downward to ¥1.587 billion from ¥2.369 billion, and net income attributable to shareholders is now forecast at ¥996 million, compared to the previous ¥1.512 billion. This translates to a revised earnings per share estimate of ¥52.28. The company cited sluggish retail conditions in Hong Kong and rising material and labor costs due to rapid yen depreciation as factors contributing to the revised outlook. Despite the lowered forecast, Wa affirmed its plan to pay a year-end dividend of ¥11 per share, which includes a ¥5 special dividend to commemorate its fifth anniversary of listing.