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Earnings presentation materials3179Syuppin Co.,Ltd.Retail

Supplementary Materials for the Second-Quarter Earnings for the Fiscal Year Ending March 2027

The full-year earnings forecast for the fiscal year ending March 2027 was revised substantially downward due to issues with the core system, an external security incident, and governance-related expenses, among other factors. At the same time, the company presented the new management structure's policies, a review of its business portfolio, system recovery measures, and new initiatives.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
5611
¥ million (downward revision to revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥23,491 million +96.2%first half
Operating profit¥562.3 million first half
Ordinary income¥438.7 million first half
Net income¥-29.7 millions interim net loss
Gross Profit Margin17.4
Selling, general and administrative expenses¥3,562 million first half
Results for the three months of the current quarter
Net Sales
¥11,785 millions+96.2%
Operating profit
¥301 millions+58.2%
Ordinary income
¥193 millions+38.8%
Net income
¥-31 millions-9.7%
Gross profit
¥2,049 millions
Selling, general and administrative expenses
¥1,747 millions
Full-year earnings forecast
Net Sales
¥49,486 millions
Operating profit
¥1,767 millions
Ordinary income
¥1,613 millions
Net income for the current fiscal year
¥598 millions
Earnings per share
¥28.38
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The watch business fell short of the initial plan for revenue and gross profit
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Gross Profit Shortfall-1,026.6
Decrease in SG&A Expenses Excluding Governance-Related Expenses Versus Budget421.3
Governance-Related Expenses-58.5
System-disruption response costs-359.2
Non-operating Income and Expenses-123.6
Extraordinary loss-369.5
Income taxes-98.9
New initiatives
  • Focused investment in the camera business
  • Freeze on additional investment in the watch business and emphasis on ROIC
  • Consideration of opening logistics and shipping hubs in major cities in Japan
  • Launch of an overseas expansion project
  • EVERYBODY PHOTOGRAPHER.com enhancements
  • Introduction of an automated appraisal function using AI image recognition
  • Expansion into the professional video and cinema segments
  • Expansion of original inks and limited-edition writing instruments
  • Revamp of the governance structure
Key KPIsA metric the company considers important as a management benchmark.
  • Proportion from the company’s own website88 %
    Year on year against the same period last year+0.4%
  • Proportion of used products57 %
  • Members purchasing through the website2.7 10,000 people
  • Active rate3.4 %
  • Cumulative member registrations80.7 10,000 people
  • Number of requests delivered2,111 ten thousand items
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of Trade-In Purchases
7,988 contracts
Number of Advance Buyback Transactions
6,569 contracts
Camera Business E-Commerce Purchase Amount
¥2,788 millions
Segment results
Camera business
Net Sales¥18,028 millions
Year on year against the same period last year+91.7%
Operating profit¥1,291 millions
Operating Profit YoY (%)¥67.6 millions
Watch business
Net Sales¥5,229 millions
Year on year against the same period last year+122.5%
Operating profit¥54 millions
Operating Profit YoY (%)¥1,367.3 millions
Writing-instrument business
Net Sales¥233 millions
Year on year against the same period last year+101.9%
Operating profit¥42 millions
Operating Profit YoY (%)¥150.1 millions
Bicycle business
Net Sales¥0 millions
Operating profit¥0 millions
Market Size / Share
The overseas TAM is approximately 6 times that of Japan
Annual Dividend
40 Yen per share
Payout ratio
Target payout ratio of 40–50%
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥23,491 million (first half) (YoY +96.2%)
Operating profit¥562.3 million (first half)
Ordinary income¥438.7 million (first half)
Net income¥-29.7 millions (interim net loss)
Gross Profit Margin17.4
Selling, general and administrative expenses¥3,562 million (first half)
Results for the three months of the current quarterNet Sales ¥11,785 millions (YoY +96.2%) / Operating profit ¥301 millions (YoY +58.2%) / Ordinary income ¥193 millions (YoY +38.8%) / Net income ¥-31 millions (YoY -9.7%) / Gross profit ¥2,049 millions / Selling, general and administrative expenses ¥1,747 millions
Full-year earnings forecastNet Sales ¥49,486 millions / Operating profit ¥1,767 millions / Ordinary income ¥1,613 millions / Net income for the current fiscal year ¥598 millions / Earnings per share ¥28.38
Self-assessment against the planThe watch business fell short of the initial plan for revenue and gross profit
Segment resultsCamera business Net Sales ¥18,028 millions / yoy_pct ¥91.7 millions / Operating profit ¥1,291 millions / Operating Profit YoY (%) ¥67.6 millions / Watch business Net Sales ¥5,229 millions / yoy_pct ¥122.5 millions / Operating profit ¥54 millions / Operating Profit YoY (%) ¥1,367.3 millions / Writing-instrument business Net Sales ¥233 millions / yoy_pct ¥101.9 millions / Operating profit ¥42 millions / Operating Profit YoY (%) ¥150.1 millions / Bicycle business Net Sales ¥0 millions / yoy_pct Not disclosed / Operating profit ¥0 millions / Operating Profit YoY (%) Not disclosed
Breakdown of Factors Affecting the ChangeGross Profit Shortfall -1,026.6 / Decrease in SG&A Expenses Excluding Governance-Related Expenses Versus Budget 421.3 / Governance-Related Expenses -58.5 / System-disruption response costs -359.2 / Non-operating Income and Expenses -123.6 / Extraordinary loss -369.5 / Income taxes -98.9
Key KPIsIndicator name Proportion from the company’s own website / Value 88 % / Year on year against the same period last year 0.4 %, Indicator name Proportion of used products / Value 57 % / Year on year against the same period last year Not disclosed, Indicator name Members purchasing through the website / Value 2.7 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Active rate / Value 3.4 % / Year on year against the same period last year Not disclosed, Indicator name Cumulative member registrations / Value 80.7 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Number of requests delivered / Value 2,111 ten thousand items / Year on year against the same period last year Not disclosed
Unit price and quantity metricsNumber of Trade-In Purchases 7,988 contracts / Number of Advance Buyback Transactions 6,569 contracts / Camera Business E-Commerce Purchase Amount ¥2,788 millions
Annual Dividend40 Yen per share
Payout ratioTarget payout ratio of 40–50%
Market Size / ShareThe overseas TAM is approximately 6 times that of Japan
New initiativesFocused investment in the camera business, Freeze on additional investment in the watch business and emphasis on ROIC, Consideration of opening logistics and shipping hubs in major cities in Japan, Launch of an overseas expansion project, EVERYBODY PHOTOGRAPHER.com enhancements, Introduction of an automated appraisal function using AI image recognition, Expansion into the professional video and cinema segments, Expansion of original inks and limited-edition writing instruments, Revamp of the governance structure
Items this document does not state (12)
Operating profit marginProgress against full-year forecastNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition 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 replacement of the core system caused issues that suspended the company's e-commerce site and external marketplaces, restricting product listings and sales initiatives; the postponement of new product launches by major manufacturers reduced sales opportunities; and expenses were incurred for point-based promotions, system modifications, third-party investigations, and legal fees.

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.
Supplementary Materials for the Second-Quarter Earnings for the Fiscal Year Ending March 2027 | Syuppin Co.,Ltd. (3179) timely disclosure | Komori