Worth reading
57In focus
Scored from 4 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
-90
¥ millionWording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationThird quarter of the fiscal year ending May 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,120 million-2.9%
Operating profit¥199 million-42.5%
Net income¥253 million-3.4%
Gross Profit Margin37.7 %
Operating profit margin1.8 %
Selling, general and administrative expenses¥3,988 million
Full-year earnings forecast
Net Sales
¥14,700 million
Operating profit
¥260 million
Ordinary income
¥230 million
Profit attributable to owners of the parent
¥280 million
Dividend per share
¥9
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- TV shopping revenueDetailsDown 65.7% year on year
- Direct Marketing business revenueDetailsDown 26.9% year on year
- Sales Marketing business revenueDetailsUp 5.9% year on year
- Selling, General and Administrative Expenses¥-330 million
- Gross marginDetailsDown 3.0 percentage points year on year
New initiatives
- Launch of the first product under the “Kato Family’s Heartfelt Meals” brand
- Launch of a subscription selected by “OKAWARI JAPAN”
- Launch of the new Korean cosmetics brand PINKWONDER
- Pop-up store rollouts for Arencia, UIQ and manyo
Key KPIsA metric the company considers important as a management benchmark.
- Adjusted EBITDA¥299 million-37.4%
- Store-channel revenue
- Korean cosmetics revenue
Segment results
Direct Marketing
Net Sales
¥2,223 million
Year-on-Year Change in Revenue (%)-26.9
Gross profit
¥1,212 million
Operating profit
¥20 million
Sales Marketing
Net Sales
¥8,895 million
Year-on-Year Change in Revenue (%)5.9
Gross profit
¥2,974 million
Operating profit
¥698 million
Adjustments
Net Sales
¥1 million
Operating profit
¥-520 million
Number of employees
180 people
Record dateEnd of May 2025
Annual Dividend
¥9
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Third quarter of the fiscal year ending May 2026 |
| Net Sales | ¥11,120 million (YoY -2.9%) |
| Operating profit | ¥199 million (YoY -42.5%) |
| Net income | ¥253 million (YoY -3.4%) |
| Gross Profit Margin | 37.7 % |
| Operating profit margin | 1.8 % |
| Selling, general and administrative expenses | ¥3,988 million |
| Full-year earnings forecast | Net Sales ¥14,700 million / Operating profit ¥260 million / Ordinary income ¥230 million / Profit attributable to owners of the parent ¥280 million / Dividend per share ¥9 |
| Segment results | Direct Marketing Net Sales ¥2,223 million / Year-on-Year Change in Revenue (%) -26.9 / Gross profit ¥1,212 million / Operating profit ¥20 million / Sales Marketing Net Sales ¥8,895 million / Year-on-Year Change in Revenue (%) 5.9 / Gross profit ¥2,974 million / Operating profit ¥698 million / Adjustments Net Sales ¥1 million / Operating profit ¥-520 million |
| Breakdown of Factors Affecting the Change | Factors TV shopping revenue / Details Down 65.7% year on year, Factors Direct Marketing business revenue / Details Down 26.9% year on year, Factors Sales Marketing business revenue / Details Up 5.9% year on year, Factors Selling, General and Administrative Expenses / Amount ¥-330 million, Factors Gross margin / Details Down 3.0 percentage points year on year |
| Key KPIs | Adjusted EBITDA ¥299 million (YoY -37.4%), Indicator name Store-channel revenue / value Not disclosed / yoy_pct 21.2 Year on year, Indicator name Korean cosmetics revenue / value Not disclosed / yoy_pct ¥3.1 million |
| Number of employees | 180 people |
| Annual Dividend | ¥9 |
| New initiatives | Launch of the first product under the “Kato Family’s Heartfelt Meals” brand, Launch of a subscription selected by “OKAWARI JAPAN”, Launch of the new Korean cosmetics brand PINKWONDER, Pop-up store rollouts for Arencia, UIQ and manyo |
Items this document does not state (16)
Ordinary incomeResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout 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 results were attributed to the continued contraction of less profitable TV shopping, a decline in the gross profit margin, and lower advertising expenses, including TV broadcast fees. The reasons for revising the full-year forecast are lower revenue and a decline in the gross profit margin for operating profit, the resulting impact for ordinary profit, and the recognition of deferred tax assets related to tax loss carryforwards arising from the group reorganization for net income.
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.