The encyclopedia · Finance & Accounting · Financial decision · 2024–2026
Charle's shrinking underwear business books a ¥3.13B loss with ¥2.35B impairment
Charle forecast a profit, then underwear sales fell short — FY Mar 2026 turned into a ¥3.13B loss, a second straight year in the red.
Charle (シャルレ) · 2026-01-29
What happened
Charle, a women's underwear company listed on the Tokyo Stock Exchange Standard market, revised its forecast for the fiscal year ending March 2026 on 29 January 2026: from a ¥190 million net profit to a ¥3.13 billion final loss.
The revision was driven by a decline in the underwear business and sluggish autumn and winter products, which pushed sales below the previous forecast. On top of that came special losses of ¥2.348 billion in fixed-asset impairment and ¥62 million in warehouse closure losses.
It was the second consecutive year in the red. The year ending March 2025 had already produced an operating loss of ¥961 million and a net loss of ¥1.012 billion — and the company still projected a profit for the year that followed, a projection the declining business demolished.
Why it happened
- Forecasting the old market: after a ¥1 billion loss year, the company still projected a profit, and the forecast collapsed once the underwear business kept falling.
- A write-down paid in one go: fixed-asset impairment of ¥2.35 billion plus a warehouse closure turned a weak year into a ¥3.13B loss.
- No segment to carry the decline: the autumn-winter range underperformed alongside the core underwear business, leaving nothing to stop the second straight annual loss.
The lesson
A loss year is evidence, not an exception: Charle projected a profit after its first billion-yen loss, and the next year's impairment made the second one three times bigger.
Aftermath
Charle revised its forecast for the fiscal year ending March 2026 on 29 January 2026, cutting it from a ¥190 million net profit to a ¥3.13 billion final loss. Sales were expected at ¥13.23 billion with an operating loss of ¥710 million. The company cited a decline in the underwear business and sluggish autumn and winter products, plus special losses of ¥2.348 billion in fixed-asset impairment and ¥62 million in warehouse closure losses. The year ending March 2025 had already produced sales of ¥11.548 billion, an operating loss of ¥961 million and a net loss of ¥1.012 billion.
Sources
- Fukeiki — Charle FY Mar 2026 heads for ¥3.1B final loss on falling sales and impairment (2026-01-29)
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