Workman "Earnings update: All efforts focused on raising growth potential"

Research evidence excerpt

Workman "Earnings update: All efforts focused on raising growth potential"

Global Research

8 June 2026ab

Workman Equities

JapanEarnings update: All efforts focused on raising

growth potential Retailers, Apparel

12-month rating Neutral

12m price target ¥7,810Action: Earnings update

Prior : ¥6,830

We provide an earnings update. We are raising our sales forecasts and revising up our

OP forecasts even further. We are raising our price target from ¥6,830 to ¥7,810. We Price (08 Jun 2026) ¥7,760

maintain our Neutral rating. RIC: 7564.T BBG: 7564 JP

Investment overview: Stepping up growth capabilities by strengthening Trading data and key metrics

development of mass-market products 52-wk range ¥8,150-5,330

Workman launched its WORKMAN Plus stores, leveraging its product development Market cap. ¥633b/US$3.95b

capabilities for professional users, and thereby successfully expanded its customer base Shares o/s 81.6m (ORD)

and increased total chain-wide sales from ¥71.4bn in FY3/16 to ¥209.2bn in FY3/26. Free float 23%

After earnings struggled due to excess inventory starting in FY3/23, management made Avg. daily volume ('000) 305

progress in optimising inventory levels in FY3/25, pursued a more flexible pricing Avg. daily value (m) ¥2,152.9

strategy, and focused on strengthening the core line-up of workwear products. From H2 Common s/h equity (03/27E) ¥170b

FY3/26, the company has been working to strengthen its development of mass-market P/BV (03/27E) 3.7x

products, including efforts to expand Mediheal recovery wear sales, to support the Net debt to EBITDA (03/27E) NM

expansion of Workman Colors stores. Our focus is on whether it can continue to raise its

domestic market share by launching multiple store formats in the same trade areas and EPS (reported, basic) (¥)