Komori
Financial results presentation26812nd RETAILING Co.,Ltd.Retail

First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

In Q1 FY2027, revenue and profit exceeded the year-earlier period, driven mainly by reused clothing and fashion accessories and luxury goods. The full-year forecasts were left unchanged from the figures announced in May 2026, reflecting the expected reactionary decline in game console demand and store network optimization costs.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
20539
¥ million (year-on-year increase in consolidated net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥125,000 million+19.7%
Operating profit¥5,301 million+32.8%
Ordinary income¥5,527 million+30.1%
Net income¥3,190 million+30.8%
Gross Profit Margin41.9 %
Operating profit margin4.2 %
Selling, general and administrative expenses¥47,080 million
Results for the three months of the current quarterRevenue: ¥125,000 million; operating profit: ¥5,301 million; ordinary profit: ¥5,527 million; net income attributable to owners of the parent: ¥3,190 million
Full-year earnings forecast
Net Sales
¥510,000 million
Operating profit
¥13,000 million
Ordinary income
¥12,500 million
Profit attributable to owners of the parent
¥6,000 million
Number of company-operated stores
2,346 Location
ROE
5.48 %
Net D/E ratio
0.3 times
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 Sales24.5
Operating profit40.8
Ordinary income44.2
Profit attributable to owners of the parent53.2
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Selling, general and administrative expenses are broadly in line with assumptions
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Reuse revenue
    Change in amount20,383
  • Clothing and fashion accessories revenue
    Change in amount7,511
  • Luxury goods revenue
    Change in amount8,718
  • Smartphone and tablet revenue
    Change in amount1,005
  • New goods revenue
    Change in amount-889
  • Rental sales
    Change in amount-955
  • Selling, general and administrative expenses
    Change in amount6,260
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • A tendency for performance to be weighted toward the second half
  • A reactionary decline following front-loaded demand before the Nintendo Switch 2 price revision
  • Costs related to store network optimization
New initiatives
  • Launch of GEO DIGITAL BASE
  • Services including repairs for game consoles and smartphones, rentals, setup assistance, and consultations on pricing plans
  • Expansion of 2nd STREET store openings in Japan and overseas
  • Initiatives to optimize the store network and improve profitability
Key KPIsA metric the company considers important as a management benchmark.
  • Total number of stores2,312 stores
  • Share of the reused smartphone and tablet market35 Approximately %
  • Number of titles distributed on DLsite2,100,000 Works
  • Number of titles on comipo55,000 Works or more
  • Number of 2nd STREET stores in Japan949 stores
Medium-term management plan targets
  • TargetGroup consolidated revenue of ¥1 trillion
    Target fiscal yearFY2035
  • Target5,000 stores across the Group, including 1,000 overseas stores
    Target fiscal yearFY2035
  • Target1,500 2nd STREET stores in Japan
    Target fiscal yearFY ending March 2036
  • Target1,000 2nd STREET stores overseas
    Target fiscal yearFY ending March 2036
Financial targets
ROE target8% or higher
Actual ROE8.91
Actual ROE unit%
Forecast Net D/E ratio0.3
Net D/E ratio unittimes
Market Size / Share
  • Global reuse market$2,450 billion 2026
  • Global reuse market10,000 Over $ billion 2036 forecast
  • Share of the reused smartphone and tablet market35 Approximately %
  • Share of the domestic reused clothing and fashion accessories market16 Approximately %
  • Share of the domestic branded goods market14 Approximately %
  • Share of the domestic furniture and home appliances market4 Approximately %
Number of stores and locations
Number at period-end2,312 stores
Store openings during the period53 stores
Stores closed during the period15 stores
Annual Dividend
Annual¥34 per share
Interim¥17 per share
End of period¥17 per share
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥125,000 million (YoY +19.7%)
Operating profit¥5,301 million (YoY +32.8%)
Ordinary income¥5,527 million (YoY +30.1%)
Net income¥3,190 million (YoY +30.8%)
Gross Profit Margin41.9 %
Operating profit margin4.2 %
Selling, general and administrative expenses¥47,080 million
Results for the three months of the current quarterRevenue: ¥125,000 million; operating profit: ¥5,301 million; ordinary profit: ¥5,527 million; net income attributable to owners of the parent: ¥3,190 million
Full-year earnings forecastNet Sales ¥510,000 million / Operating profit ¥13,000 million / Ordinary income ¥12,500 million / Profit attributable to owners of the parent ¥6,000 million / Number of company-operated stores 2,346 Location / ROE 5.48 % / Net D/E ratio 0.3 times
Progress against full-year forecastNet Sales 24.5 / Operating profit 40.8 / Ordinary income 44.2 / Profit attributable to owners of the parent 53.2
Self-assessment against the planSelling, general and administrative expenses are broadly in line with assumptions
Breakdown of Factors Affecting the ChangeFactors Reuse revenue / Change in amount ¥20,383 million, Factors Clothing and fashion accessories revenue / Change in amount ¥7,511 million, Factors Luxury goods revenue / Change in amount ¥8,718 million, Factors Smartphone and tablet revenue / Change in amount ¥1,005 million, Factors New goods revenue / Change in amount ¥-889 million, Factors Rental sales / Change in amount ¥-955 million, Factors Selling, general and administrative expenses / Change in amount ¥6,260 million
Key KPIsIndicator name Total number of stores / Value 2,312 stores / Year on year against the same period last year Not disclosed, Indicator name Share of the reused smartphone and tablet market / Value 35 Approximately % / Year on year against the same period last year Not disclosed, Indicator name Number of titles distributed on DLsite / Value 2,100,000 Works / Year on year against the same period last year Not disclosed, Indicator name Number of titles on comipo / Value 55,000 Works or more / Year on year against the same period last year Not disclosed, Indicator name Number of 2nd STREET stores in Japan / Value 949 stores / Year on year against the same period last year Not disclosed
Number of stores and locationsNumber at period-end 2,312 stores / Store openings during the period 53 stores / Stores closed during the period 15 stores
Assumptions Underlying the Business OutlookA tendency for performance to be weighted toward the second half, A reactionary decline following front-loaded demand before the Nintendo Switch 2 price revision, Costs related to store network optimization
Medium-term management plan targetsTarget Group consolidated revenue of ¥1 trillion / Target fiscal year FY2035, Target 5,000 stores across the Group, including 1,000 overseas stores / Target fiscal year FY2035, Target 1,500 2nd STREET stores in Japan / Target fiscal year FY ending March 2036, Target 1,000 2nd STREET stores overseas / Target fiscal year FY ending March 2036
Financial targetsROE target 8% or higher / Actual ROE 8.91 / Actual ROE unit % / Forecast Net D/E ratio 0.3 / Net D/E ratio unit times
Annual DividendAnnual ¥34 per share / Interim ¥17 per share / End of period ¥17 per share
Market Size / ShareMarket Global reuse market / Value $2,450 billion (2026), Market Global reuse market / Value 10,000 Over $ billion (2036 forecast), Market Share of the reused smartphone and tablet market / Value 35 Approximately %, Market Share of the domestic reused clothing and fashion accessories market / Value 16 Approximately %, Market Share of the domestic branded goods market / Value 14 Approximately %, Market Share of the domestic furniture and home appliances market / Value 4 Approximately %
New initiativesLaunch of GEO DIGITAL BASE, Services including repairs for game consoles and smartphones, rentals, setup assistance, and consultations on pricing plans, Expansion of 2nd STREET store openings in Japan and overseas, Initiatives to optimize the store network and improve profitability
Items this document does not state (9)
Segment resultsUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition 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.

Revenue from clothing and fashion accessories increased due to new store openings and earlier demand for summer clothing. Revenue from luxury goods rose on inbound demand and higher secondhand watch prices, while smartphone and tablet revenue increased as unit sales expanded and pricing was optimized. Luxury goods revenue also benefited from the elimination of the negative impact from U.S. tariffs in the year-earlier period. Revenue from new goods declined following the reactionary drop after the special demand immediately following the launch of Nintendo Switch 2 in the year-earlier period, but profit increased due to an improved product mix.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | 2nd RETAILING Co.,Ltd. (2681) timely disclosure | Komori