First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | HARD OFF CORPORATION Co.,Ltd. (2674) timely disclosure

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Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥11,251 million+30.0%

Operating profit¥1,058 million+34.4%

Ordinary income¥1,061 million+26.7%

Net income¥1,456 million+167.8%

Gross Profit Margin68.6%

Operating profit margin9.4%

Selling, general and administrative expenses¥6,662 million

Results for the three months of the current quarterRevenue of ¥11,251 million, operating profit of ¥1,058 million, ordinary profit of ¥1,061 million, and net income attributable to owners of the parent of ¥1,456 million. The presentation, however, identifies these as Q1 results.

Full-year earnings forecast

Net Sales

¥45,700 million

Operating profit

¥4,050 million

Ordinary income

¥4,100 million

Profit attributable to owners of the parent

¥3,300 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales24.6%

Operating profit26.1%

Ordinary income25.9%

Profit attributable to owners of the parent44.1%

First-half net sales51.7%

First-half operating profit67.0%

First-half ordinary profit65.1%

First-half quarterly net income attributable to owners of the parent80.9%

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Existing-Store Sales in Japan8.9 % year on year
Gain on sale of investment securities¥1,160 million
Increase in SG&A expenses due to new store opening costs and other factors¥1,473 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Year-on-year change in same-store sales

Fiscal year ending March 2027+4%

Fiscal year ending March 2028+3%

Fiscal year ending March 2029+3%

Net increase in stores

Fiscal year ending March 202757

Fiscal year ending March 202850

Fiscal year ending March 202950

New initiatives

Opening of the Mode Off VINTAGE & LUXURY store in front of Ueno Station
Establishment of a Thai Subsidiary
Establishing a Global Business Division
Reviewing the employee transfer system
Introducing a home-purchase congratulatory benefit
Increasing the number of annual holidays from 105 to 115 days

Key KPIsA metric the company considers important as a management benchmark.

Existing-Store Sales in Japan8.9 % year on year
Year on year against the same period last year+8.9%
Number of reuse stores1,095 Location
Number of check-ins on the Hadōfu Meguri feature in the official Hard Off app119 Year-on-year change from FY2025 %
Year on year against the same period last year+19%

Segment results

ハードオフ

Net Sales¥4,013 million

Year on year against the same period last year+34.4%

オフハウス

Net Sales¥3,085 million

Year on year against the same period last year+16.3%

ホビーオフ

Net Sales¥1,454 million

Year on year against the same period last year+66.4%

MODE OFF

Net Sales¥292 million

Year on year against the same period last year-6.9%

GARAGE OFF

Net Sales¥171 million

Year on year against the same period last year+15.7%

ブックオフ

Net Sales¥1,132 million

Year on year against the same period last year+53.0%

Overseas expansion

Net Sales¥635 million

Year on year against the same period last year+32.5%

Franchise Business

Net Sales¥433 million

Year on year against the same period last year-3.4%

Other

Net Sales¥31 million

Year on year against the same period last year+294.4%

Medium-term management plan targets

Number of stores1,300 stores in FY2030, with a long-term target of more than 3,000 stores

Ordinary income margin10.0% in the fiscal year ending March 2029

ROEMore than 13% in the fiscal year ending March 2029

Financial targets

ROE

Forecast for the fiscal year ending March 202715.5%

Target for the fiscal year ending March 2029More than 13%

ROIC

Forecast for the fiscal year ending March 202710.8%

ROA

Forecast for the fiscal year ending March 202712.6%

Market Size / Share

Reuse market sizeApproximately ¥3.3 trillion

Projected market size in 2030¥4.0 trillion

People with experience using reuse services28.8%

Number of stores and locations

End of period1,095 Location

Store openings during the period15 directly operated stores, 3 franchised stores

Store closures during the period1 franchised store

Net increase17 Location

Annual Dividend

Forecast for the fiscal year ending March 2027¥92 per share

Payout ratio

Not disclosed. The presentation states that a DOE (dividend on equity, based on consolidated net assets) of 6% is the guideline.

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥11,251 million (YoY +30.0%)
Operating profit	¥1,058 million (YoY +34.4%)
Ordinary income	¥1,061 million (YoY +26.7%)
Net income	¥1,456 million (YoY +167.8%)
Gross Profit Margin	68.6%
Operating profit margin	9.4%
Selling, general and administrative expenses	¥6,662 million
Results for the three months of the current quarter	Revenue of ¥11,251 million, operating profit of ¥1,058 million, ordinary profit of ¥1,061 million, and net income attributable to owners of the parent of ¥1,456 million. The presentation, however, identifies these as Q1 results.
Full-year earnings forecast	Net Sales ¥45,700 million / Operating profit ¥4,050 million / Ordinary income ¥4,100 million / Profit attributable to owners of the parent ¥3,300 million
Progress against full-year forecast	Net Sales 24.6% / Operating profit 26.1% / Ordinary income 25.9% / Profit attributable to owners of the parent 44.1% / First-half net sales 51.7% / First-half operating profit 67.0% / First-half ordinary profit 65.1% / First-half quarterly net income attributable to owners of the parent 80.9%
Segment results	ハードオフ Net Sales ¥4,013 million / yoy_pct ¥34.4 million / オフハウス Net Sales ¥3,085 million / yoy_pct ¥16.3 million / ホビーオフ Net Sales ¥1,454 million / yoy_pct ¥66.4 million / MODE OFF Net Sales ¥292 million / yoy_pct ¥-6.9 million / GARAGE OFF Net Sales ¥171 million / yoy_pct ¥15.7 million / ブックオフ Net Sales ¥1,132 million / yoy_pct ¥53 million / Overseas expansion Net Sales ¥635 million / yoy_pct ¥32.5 million / Franchise Business Net Sales ¥433 million / yoy_pct ¥-3.4 million / Other Net Sales ¥31 million / yoy_pct ¥294.4 million
Breakdown of Factors Affecting the Change	Existing-Store Sales in Japan 8.9 % year on year, Gain on sale of investment securities ¥1,160 million, Increase in SG&A expenses due to new store opening costs and other factors ¥1,473 million
Key KPIs	Indicator name Existing-Store Sales in Japan / Value 8.9 % year on year / Year on year against the same period last year +8.9%, Indicator name Number of reuse stores / Value 1,095 Location / Year on year against the same period last year Not disclosed, Indicator name Number of check-ins on the Hadōfu Meguri feature in the official Hard Off app / Value 119 Year-on-year change from FY2025 (%) / Year on year against the same period last year +19%
Number of stores and locations	End of period 1,095 Location / Store openings during the period 15 directly operated stores, 3 franchised stores / Store closures during the period 1 franchised store / Net increase 17 Location
Assumptions Underlying the Business Outlook	Year-on-year change in same-store sales Fiscal year ending March 2027 +4% / Fiscal year ending March 2028 +3% / Fiscal year ending March 2029 +3% / Net increase in stores Fiscal year ending March 2027 57 / Fiscal year ending March 2028 50 / Fiscal year ending March 2029 50
Medium-term management plan targets	Number of stores 1,300 stores in FY2030, with a long-term target of more than 3,000 stores / Ordinary income margin 10.0% in the fiscal year ending March 2029 / ROE More than 13% in the fiscal year ending March 2029
Financial targets	ROE Forecast for the fiscal year ending March 2027 15.5% / Target for the fiscal year ending March 2029 More than 13% / ROIC Forecast for the fiscal year ending March 2027 10.8% / ROA Forecast for the fiscal year ending March 2027 12.6%
Annual Dividend	Forecast for the fiscal year ending March 2027 ¥92 per share / Interim Not disclosed / End of period Not disclosed
Payout ratio	Not disclosed. The presentation states that a DOE (dividend on equity, based on consolidated net assets) of 6% is the guideline.
Market Size / Share	Reuse market size Approximately ¥3.3 trillion / Projected market size in 2030 ¥4.0 trillion / People with experience using reuse services 28.8%
New initiatives	Opening of the Mode Off VINTAGE & LUXURY store in front of Ueno Station, Establishment of a Thai Subsidiary, Establishing a Global Business Division, Reviewing the employee transfer system, Introducing a home-purchase congratulatory benefit, Increasing the number of annual holidays from 105 to 115 days

Items this document does not state (8)

Self-assessment against the planUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The reasons were an 8.9% increase in domestic same-store sales, contributions from 30 directly operated stores opened in the previous fiscal year and 69 エコノス stores included in the consolidated results from Q3 of the previous fiscal year, and the effect of higher revenue. For net income, the presentation also cites the recognition of a ¥1,160 million gain on the sale of investment securities as extraordinary income.

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