Earnings Presentation Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending February 2027 | and ST HD Co.,Ltd. (2685) timely disclosure

Worth reading

68In focus

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

10731

¥ million (operating profit for the first half)

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter (interim period) of the fiscal year ending February 20278 items taken from the company’s own explanation

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

Net Sales¥152,110 million+1.9%

Operating profit¥10,731 million+34.6%

Ordinary income¥11,066 million+42.0%

Net income¥5,951 million-0.6%

Gross Profit Margin56.5 %

Operating profit margin7.1 %

Selling, general and administrative expenses¥75,265 million

Results for the three months of the current quarter

Net Sales

¥71,792 million-0.1%

Operating profit

¥2,856 million+20.6%

Ordinary income

¥3,019 million+27.6%

Net income

¥2,042 million+26.6%

Full-year earnings forecast

Net Sales

¥314,000 million

Gross profit

¥172,850 million

Selling, general and administrative expenses

¥155,650 million

Operating profit

¥17,200 million

Ordinary income

¥17,200 million

Net income

¥10,500 million

EBITDA

¥27,880 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

The company exceeded its initial plan. Revenue met the earnings forecast, the gross profit margin fell short, SG&A expenses were in line with the plan, and operating income exceeded the plan.

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

Advertising expenses¥-628 million
Personnel expenses¥940 million
Equipment costs¥620 million
Other SG&A expenses¥-74 million
Foreign Exchange Gains¥210 million
Interest expenses¥-120 million
Gain on sale of fixed assets (trademarks)¥130 million
Special awards for distinguished service¥-1,200 million
Impairment losses on stores¥-120 million
Losses from natural disasters¥-60 million

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

Foreign exchangeThe yen is expected to remain weaker than assumed in the second half, while the next fiscal year is assumed to be at roughly the same level as the current fiscal year

Pricing policyMaintain price points despite headwinds from foreign exchange movements and higher raw material costs

New initiatives

Launch of jointly developed products with Seven-Eleven Japan
Launch of and ST Taiwan's mall business
Preparations to open stores in Malaysia and Vietnam and establish local subsidiaries
Launch of ELMIRA, a new AI-co-created apparel brand
Acquisition of ELAND's trademark rights and business rights in Japan
Launch of multiple new brands and investment in new overseas businesses

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

and ST GMV248 Hundreds of millions of yen
Year on year against the same period last year+10.9%
Total and ST members2,270 10,000 people
Year on year against the same period last year+1 million people versus the end of the previous fiscal year
Active members810 10,000 people
Year on year against the same period last year+300,000 from the end of the previous fiscal year
Shops outside the Group82 shops
Year on year against the same period last year+45 shops
Domestic EC ratio27.3 %
Own EC ratio14.3 %

Segment results

New Adastria + and ST + HD

Net Sales

¥122,431 million+3.4%

Operating profit

¥8,831 million+41.2%

Domestic Group companies

Net Sales

¥12,828 million+2.0%

Operating profit

¥740 million-11.7%

Overseas Group companies

Net Sales

¥11,014 million-11.4%

Operating profit

¥923 million+43.3%

ゼットン (restaurant group company)

Net Sales

¥8,042 million+1.1%

Operating profit

¥219 million-6.8%

Financial targets

ROE

FY2027/2 forecast12.4 %

Number of stores and locations

Consolidated total

Store count at end of first half1,692

Store openings during the period42

Store closures during the period24

Japan Total

Store count at end of first half1,453

Store openings during the period29

Store closures during the period20

Overseas Total

Store count at end of first half165

Store openings during the period10

Store closures during the period2

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending February 2027
Net Sales	¥152,110 million (YoY +1.9%)
Operating profit	¥10,731 million (YoY +34.6%)
Ordinary income	¥11,066 million (YoY +42.0%)
Net income	¥5,951 million (YoY -0.6%)
Gross Profit Margin	56.5 %
Operating profit margin	7.1 %
Selling, general and administrative expenses	¥75,265 million
Results for the three months of the current quarter	Net Sales ¥71,792 million (YoY -0.1%) / Operating profit ¥2,856 million (YoY +20.6%) / Ordinary income ¥3,019 million (YoY +27.6%) / Net income ¥2,042 million (YoY +26.6%)
Full-year earnings forecast	Net Sales ¥314,000 million / Gross profit ¥172,850 million / Selling, general and administrative expenses ¥155,650 million / Operating profit ¥17,200 million / Ordinary income ¥17,200 million / Net income ¥10,500 million / EBITDA ¥27,880 million
Self-assessment against the plan	The company exceeded its initial plan. Revenue met the earnings forecast, the gross profit margin fell short, SG&A expenses were in line with the plan, and operating income exceeded the plan.
Segment results	New Adastria + and ST + HD Net Sales ¥122,431 million (YoY +3.4%) / Operating profit ¥8,831 million (YoY +41.2%) / Domestic Group companies Net Sales ¥12,828 million (YoY +2.0%) / Operating profit ¥740 million (YoY -11.7%) / Overseas Group companies Net Sales ¥11,014 million (YoY -11.4%) / Operating profit ¥923 million (YoY +43.3%) / ゼットン (restaurant group company) Net Sales ¥8,042 million (YoY +1.1%) / Operating profit ¥219 million (YoY -6.8%)
Breakdown of Factors Affecting the Change	Factors Advertising expenses / Amount ¥-628 million, Factors Personnel expenses / Amount ¥940 million, Factors Equipment costs / Amount ¥620 million, Factors Other SG&A expenses / Amount ¥-74 million, Factors Foreign Exchange Gains / Amount ¥210 million, Factors Interest expenses / Amount ¥-120 million, Factors Gain on sale of fixed assets (trademarks) / Amount ¥130 million, Factors Special awards for distinguished service / Amount ¥-1,200 million, Factors Impairment losses on stores / Amount ¥-120 million, Factors Losses from natural disasters / Amount ¥-60 million
Key KPIs	Indicator name and ST GMV / Value 248 Hundreds of millions of yen / Year on year against the same period last year 10.9 Hundreds of millions of yen, Indicator name Total and ST members / Value 2,270 10,000 people / Year on year against the same period last year +1 million people versus the end of the previous fiscal year, Indicator name Active members / Value 810 10,000 people / Year on year against the same period last year +300,000 from the end of the previous fiscal year, Indicator name Shops outside the Group / Value 82 shops / Year on year against the same period last year +45 shops, Indicator name Domestic EC ratio / Value 27.3 % / Year on year against the same period last year Not disclosed, Indicator name Own EC ratio / Value 14.3 % / Year on year against the same period last year Not disclosed
Number of stores and locations	Consolidated total Store count at end of first half 1,692 / Store openings during the period 42 / Store closures during the period 24 / Japan Total Store count at end of first half 1,453 / Store openings during the period 29 / Store closures during the period 20 / Overseas Total Store count at end of first half 165 / Store openings during the period 10 / Store closures during the period 2
Assumptions Underlying the Business Outlook	Foreign exchange The yen is expected to remain weaker than assumed in the second half, while the next fiscal year is assumed to be at roughly the same level as the current fiscal year / Pricing policy Maintain price points despite headwinds from foreign exchange movements and higher raw material costs
Financial targets	ROE 12.4 %
New initiatives	Launch of jointly developed products with Seven-Eleven Japan, Launch of and ST Taiwan's mall business, Preparations to open stores in Malaysia and Vietnam and establish local subsidiaries, Launch of ELMIRA, a new AI-co-created apparel brand, Acquisition of ELAND's trademark rights and business rights in Japan, Launch of multiple new brands and investment in new overseas businesses

Items this document does not state (12)

Progress against full-year forecastUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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 improvement in merchandise margins, restraint in discounting through inventory control, more efficient advertising, and control of costs and SG&A expenses contributed. Net income was affected by one-off expenses, including a special merit payment, store impairment losses, and disaster losses.

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.