CURVES HOLDINGS Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

CURVES HOLDINGS (TSE:7085) Full Year 2024 Results

Key Financial Results

• Revenue: JP¥35.5b (up 18% from FY 2023).
• Net income: JP¥3.57b (up 40% from FY 2023).
• Profit margin: 10% (up from 8.5% in FY 2023). The increase in margin was driven by higher revenue.
• EPS: JP¥38.75 (up from JP¥27.71 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

CURVES HOLDINGS EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 4.3%.

In the last 12 months, the only revenue segment was Curves Business contributing JP¥35.5b. Notably, cost of sales worth JP¥20.3b amounted to 57% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to JP¥9.69b (84% of total expenses). Explore how 7085's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.2% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Hospitality industry in Japan.

Performance of the Japanese Hospitality industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We should say that we've discovered 1 warning sign for CURVES HOLDINGS that you should be aware of before investing here.

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