World's profit attributable to owners rose 4.2% to ¥5.88bn in the six months to August 2026, but the rise owes more to a lighter tax bill and the end of minority-holder leakage than to the core apparel business. Revenue was ¥142.49bn, up 4.1%. Operating profit was ¥8.41bn, up 1.2%, and the company's own measure, business profit, rose 0.3% to ¥8.36bn, according to its half-year securities report.
Apparel brands miss on summer
The report calls the apparel brands a problem area. The effects of merchandising reforms have not yet reached every brand, and weak summer sales, centred on June, cancelled out the gains from stronger full-price selling and cost restructuring. Growth came from elsewhere: the circular (second-hand) business, and two newly consolidated companies, one of them a cosmetics and homeware retailer World bought on 1 March 2026 from a business of the Hankyu Hanshin group. World paid ¥175mn in cash for 100%, booked a provisional negative-goodwill gain of ¥181mn, and says the unit contributed ¥2.23bn of revenue and ¥190mn of profit after acquisition.
Why profit rose anyway
Profit before finance costs and income tax fell 10.6% to ¥8.40bn. The prior-year period included a one-off gain on the valuation of a call option over a then equity-accounted retailer. Owners' profit still rose because World took full ownership of two subsidiaries, which stopped profit flowing to minority holders, and because income tax fell to ¥1.37bn from ¥2.67bn, partly through tax-effect accounting tied to an internal reorganisation. Earnings per share fell to ¥77.11 from ¥82.74 as the weighted average share count rose to 76.2mn from 68.2mn.
Segments after a reporting overhaul
World replaced its brand, digital and platform segments with B2C and B2B, and adopted IFRS 18, the new income-statement standard, ahead of schedule. It is the first year of its VISION-W medium-term plan.
| Segment | Revenue | Revenue change | Business profit | Profit change |
|---|---|---|---|---|
| B2C | ¥108.4bn | +8.2% | ¥4.56bn | +0.1% |
| B2B | ¥49.8bn | +3.3% | ¥3.09bn | +12.3% |
| Common unit | ¥7.28bn | -1.6% | ¥637mn | -39.4% |
The common unit's profit fell 39.4%. The report cites costs from the leaseback of the Kobe head office, expanded shareholder perks and up-front spending on staff and new businesses.
Leverage and payout
Net debt-to-equity improved to 1.06 times from 1.18 times, still above the plan's ceiling of 0.75 times. Return on invested capital was 7.2%, against a target of at least 8.5%. Return on equity was 13.3%, above the 12.5% floor. Operating cash flow was ¥16.60bn. Current borrowings stood at ¥77.3bn at the end of August against ¥37.8bn at the end of February, while non-current borrowings fell to ¥155mn from ¥44.0bn. The board declared an interim dividend of ¥31 per share, ¥2.37bn in total, payable on 5 November 2026.
World's president and its chief financial officer confirmed in a separate statutory confirmation that the report was properly prepared under securities law, with nothing special to note.