TANACHIRA Retail Corporation Public Company Limited (SET: TAN) announced its financial results for the first quarter of 2025, reporting total revenue of 485 million baht, representing a 4.9% growth compared to the same period last year.
The performance highlights the company’s continued revenue-generating capability despite ongoing economic volatility. Notably, HARNN’s business in China showed outstanding growth, while the fashion segment continued to expand its customer base. However, the company posted a net profit of 39 million baht, down 34.5% year-on-year. This decline is mainly attributed to strategic investments for long-term expansion and sluggish consumer spending due to economic headwinds experienced during the quarter.
Mr. Tanapong Chirapanidchakul Chief Executive Officer of TAN stated: “The first quarter of this year marks a positive start, especially with the strong performance of our international business, which has clearly demonstrated its potential. We also continue to build on the success of our fashion segment and expand our food and beverage business in Thailand. Although net profit declined due to forward-looking investments, we remain confident in our long-term growth trajectory.”
During this quarter, the international business delivered impressive growth, generating THB 51.6 million in revenue—over 200% increase compared to the same period last year. This was primarily driven by HARNN Greater China, which accounted for the largest share of the international segment. HARNN products are now available at over 200 retail points across six provinces in China—Guangdong, Henan, Heilongjiang, Jiangsu, Zhejiang, and Tibet—through cosmetic chain stores and specialty stores. The brand also operates two concept stores in Shanghai and Shenzhen.
Furthermore, online sales have played a crucial role in the early phase of the business in China, contributing up to 68% of total sales in the country through e-commerce platforms and livestreaming channels such as Tmall, Xiaohongshu, Douyin, and JD.com. Vietnam also showed remarkable performance through a strong online strategy, bolstered by an effective KOL network and successful brand building for HARNN and Cath Kidston, which currently operate 11 stores in Ho Chi Minh City and Hanoi. In Japan, the company significantly reduced losses by improving cost control and refining its spa operations and distribution strategy through local partners in different prefectures.
Domestically, the company generated THB 425.3 million in revenue from local operations, representing a 3.5% decline year-over-year. The revenue breakdown by business segment is as follows:
- Lifestyle Segment (51%) – The Pandora brand faced pressure due to price adjustments and a reduction in new collections, while Cath Kidston maintained year-over-year growth despite store closures.
- Fashion Segment (23%) – A core strength of the company, led by Marimekko and GANNI, which have established a solid customer base. New additions like United Arrows and MM6 Maison Margiela also demonstrated the ability to continuously expand the customer base, underscoring the strong growth potential of this segment.
- Beauty & Wellness Segment (17%) – Growth was supported by the expansion of HARNN’s product and service offerings, catering to both domestic and international markets.
- F&B Segment (8%) – The Gordon Ramsay group performed well, with positive customer reception to both food and service quality. The company also opened its second Bread Street Kitchen & Bar branch at ICONSIAM in January.
Mr. Tanapong further emphasized: “Although we have ongoing investments in domestic and international expansion—which will take time to reach breakeven—we remain focused on disciplined cost control and expense management. We are committed to enhancing all aspects of our operations, particularly in retail execution, which is the heart of our business. This includes staff training, customer experience design, and providing additional benefits to exceed customer expectations.”
Looking ahead to 2Q25, typically considered a low season, the company will continue to pursue proactive strategies across all business units. It will focus on three core pillars 1) Expanding the new customer base through strategic brand additions, such as introducing a popular Brazilian active wear brand into the lifestyle portfolio. 2) Improving operational efficiency, particularly in-store management and sales team training. 3) Disciplined cost control and financial management to mitigate economic uncertainty and strengthen long-term resilience and returns.
