Komori
Financial results presentation26812nd RETAILING Co.,Ltd.Retail

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, sales and profit at every stage exceeded the same period of the previous year, driven by growth in the reuse business and an improved product mix. While leaving its full-year sales forecast unchanged, the company raised its forecasts for operating profit, ordinary profit and net profit.

Worth reading
74In 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
64.8
Year-on-year increase in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥246,767 million+13.7%
Operating profit¥8,378 million+64.8%
Ordinary income¥8,389 million+50.5%
Net income¥4,795 million+48.6%
Gross Profit Margin42.1
Operating profit margin3.4
Selling, general and administrative expenses¥95,503 million
Results for the three months of the current quarter
Net Sales
¥121,767 million
Gross profit
¥51,499 million
Operating profit
¥3,076 million
Ordinary income
¥2,862 million
Profit attributable to owners of parent for the quarter
¥1,605 million
Full-year earnings forecast
Net Sales
¥510,000 million
Operating profit
¥17,000 million
Ordinary income
¥16,500 million
Profit attributable to owners of the parent
¥8,200 million
Number of company-operated stores
2,346 stores
ROE
7.77 %
Net D/E ratio
0.29 x
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 Sales48.4
Operating profit49.3
Ordinary income50.8
Profit attributable to owners of the parent58.5
Number of company-operated stores98 stores opened
Net D/E ratio0.12 increase
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Total SG&A expenses remained broadly within the assumed range
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Increase in sales
¥29,824 million
Increase in gross profit
¥15,116 million
Increase in operating profit
¥3,293 million
Higher SG&A Expenses
¥11,822 million
Increase in Reuse Sales
¥30,660 million
Decrease in New Product Sales
¥-3,138 million
Increase in Other Sales
¥2,302 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Demand for reuse products is expected to remain firm. At the same time, the forecast cautiously factors in the decline following the rush demand for Nintendo Switch 2, the transition to a refund-based tax exemption system, concerns over a warm winter, and measures to enhance system security. The numerical assumptions are Not disclosed.
New initiatives
  • The company name will change from ゲオホールディングス to セカンドリテイリング
  • Opened 2nd STREET GINZA
  • Opened Super 2nd STREET マーケットスクエア川崎イースト店
  • Decided to open stores in Cambodia
  • The company plans to achieve 1000 domestic 2nd STREET stores ahead of schedule in the fiscal year ending March 2027
Key KPIsA metric the company considers important as a management benchmark.
  • Domestic and overseas store count2,333 stores
  • 2nd STREET stores1,132 stores
  • viviON membership562 10,000 users
    Year on year against the same period last yearIncreased
  • viviON GMV¥1,812 100 million
    Year on year against the same period last yearIncreased
  • Sales per unit area at existing stores20 % improvement
    Year on year against the same period last yearImproved
Unit price and quantity metricsThese figures show sales broken down by price and volume.
In the reuse business, an increase in customer traffic and higher average selling prices boosted sales. In games, higher average selling prices offset the decline in the number of stores. The figures themselves are Not disclosed.
Segment results
Reused merchandise
Net Sales
¥166,137 million+22.6%
Gross profit
¥72,306 million+20.7%
New products
Net Sales
¥50,908 million-5.8%
Gross profit
¥11,042 million+13.5%
Other
Net Sales
¥29,720 million+8.4%
Gross profit
¥20,532 million+7.4%
By Product Category
Apparel and fashion accessories
Net Sales
¥67,928 million+26.9%
Furniture and Appliances
Net Sales
¥6,894 million+10.0%
Luxury
Net Sales
¥33,876 million+38.1%
Games
Net Sales
¥18,838 million+16.9%
Smartphones and tablets
Net Sales
¥26,110 million+11.7%
Digital Content
Net Sales
¥11,254 million+12.4%
Rentals
Net Sales
¥11,291 million-13.3%
Medium-term management plan targets
FY2035
Consolidated net sales¥1 trillion
Number of group stores5000 stores
Number of overseas stores1000 stores
2030305 overseas 2nd STREET stores
FY ending March 20361500 domestic 2nd STREET stores
Financial targets
ROE
Full-year forecast7.77 %
Previous-period results8.91 %
Net D/E ratio
Full-year forecast0.29 x
Previous-period results0.33 x
Market Size / Share
Outlook for Domestic Reuse Market Size¥50,000 100 million
ShareThe company is stated to hold the top market share in reuse clothing and fashion accessories, as well as reuse games, smartphones and other products.
Number of stores and locations
Number of Stores at Period-End2,333 stores
Store openings during the period98 stores
Stores closed during the period37 stores
Net Change During the Period59 stores
Capital expenditures
¥8,973 million
DetailsInvesting Cash Flow
Annual Dividend
Annual¥34 /share
Interim¥17 /share
End of period¥17 /share
Payout ratio
16.5 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥246,767 million (YoY +13.7%)
Operating profit¥8,378 million (YoY +64.8%)
Ordinary income¥8,389 million (YoY +50.5%)
Net income¥4,795 million (YoY +48.6%)
Gross Profit Margin42.1
Operating profit margin3.4
Selling, general and administrative expenses¥95,503 million
Results for the three months of the current quarterNet Sales ¥121,767 million / Gross profit ¥51,499 million / Operating profit ¥3,076 million / Ordinary income ¥2,862 million / Profit attributable to owners of parent for the quarter ¥1,605 million
Full-year earnings forecastNet Sales ¥510,000 million / Operating profit ¥17,000 million / Ordinary income ¥16,500 million / Profit attributable to owners of the parent ¥8,200 million / Number of company-operated stores 2,346 stores / ROE 7.77 % / Net D/E ratio 0.29 x
Progress against full-year forecastNet Sales 48.4 / Operating profit 49.3 / Ordinary income 50.8 / Profit attributable to owners of the parent 58.5 / Number of company-operated stores 98 stores opened / Net D/E ratio 0.12 increase
Self-assessment against the planTotal SG&A expenses remained broadly within the assumed range
Segment resultsReused merchandise Net Sales ¥166,137 million (YoY +22.6%) / Gross profit ¥72,306 million (YoY +20.7%) / New products Net Sales ¥50,908 million (YoY -5.8%) / Gross profit ¥11,042 million (YoY +13.5%) / Other Net Sales ¥29,720 million (YoY +8.4%) / Gross profit ¥20,532 million (YoY +7.4%) / By Product Category Apparel and fashion accessories Net Sales ¥67,928 million (YoY +26.9%) / Furniture and Appliances Net Sales ¥6,894 million (YoY +10.0%) / Luxury Net Sales ¥33,876 million (YoY +38.1%) / Games Net Sales ¥18,838 million (YoY +16.9%) / Smartphones and tablets Net Sales ¥26,110 million (YoY +11.7%) / Digital Content Net Sales ¥11,254 million (YoY +12.4%) / Rentals Net Sales ¥11,291 million (YoY -13.3%)
Breakdown of Factors Affecting the ChangeIncrease in sales ¥29,824 million / Increase in gross profit ¥15,116 million / Increase in operating profit ¥3,293 million / Higher SG&A Expenses ¥11,822 million / Increase in Reuse Sales ¥30,660 million / Decrease in New Product Sales ¥-3,138 million / Increase in Other Sales ¥2,302 million
Key KPIs2,333 stores, 1,132 stores, 562 10,000 users, ¥1,812 100 million, 20 % improvement
Unit price and quantity metricsIn the reuse business, an increase in customer traffic and higher average selling prices boosted sales. In games, higher average selling prices offset the decline in the number of stores. The figures themselves are Not disclosed.
Number of stores and locationsNumber of Stores at Period-End 2,333 stores / Store openings during the period 98 stores / Stores closed during the period 37 stores / Net Change During the Period 59 stores
Assumptions Underlying the Business OutlookDemand for reuse products is expected to remain firm. At the same time, the forecast cautiously factors in the decline following the rush demand for Nintendo Switch 2, the transition to a refund-based tax exemption system, concerns over a warm winter, and measures to enhance system security. The numerical assumptions are Not disclosed.
Medium-term management plan targetsFY2035 Consolidated net sales ¥1 trillion / Number of group stores 5000 stores / Number of overseas stores 1000 stores / 2030 305 overseas 2nd STREET stores / FY ending March 2036 1500 domestic 2nd STREET stores
Financial targetsROE Full-year forecast 7.77 % / Previous-period results 8.91 % / Net D/E ratio Full-year forecast 0.29 x / Previous-period results 0.33 x
Annual DividendAnnual ¥34 /share / Interim ¥17 /share / End of period ¥17 /share
Payout ratio16.5 %
Capital expenditures¥8,973 million
Market Size / ShareOutlook for Domestic Reuse Market Size ¥50,000 100 million / Share The company is stated to hold the top market share in reuse clothing and fashion accessories, as well as reuse games, smartphones and other products.
New initiativesThe company name will change from ゲオホールディングス to セカンドリテイリング, Opened 2nd STREET GINZA, Opened Super 2nd STREET マーケットスクエア川崎イースト店, Decided to open stores in Cambodia, The company plans to achieve 1000 domestic 2nd STREET stores ahead of schedule in the fiscal year ending March 2027
Items this document does not state (5)
Number of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders 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 main reasons were sales growth in the reuse business, a lower proportion of new products, higher gross profit margins resulting from an improved product mix, and the absorption of higher SG&A expenses through substantial revenue growth. In the reuse business, new store openings, sales events, purchase campaigns and new commercials boosted customer traffic and sales, while in new products, an improved product mix lifted margins.

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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | 2nd RETAILING Co.,Ltd. (2681) timely disclosure | Komori