Worth reading
71In 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
-698
¥ million (year-on-year change in operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter of the fiscal year ending January 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥28,554 million-2.3%
Operating profit¥232 million-75.0%
Ordinary income¥357 million-66.7%
Net income¥101 million-88.5%
Selling, general and administrative expenses¥7,662 million
Gross Profit Margin
Rate27.6%
Year-on-year change (points)-0.6
Operating profit margin
Rate0.8%
Year-on-year change (points)Down from 3.2% in the same period of the previous year
Results for the three months of the current quarter
Net Sales
¥13,055 million
Operating profit
¥-115 million
Gross Profit Margin
28.0%
Full-year earnings forecast
Net Sales
¥61,000 million
Gross profit
¥16,616 million
Operating profit
¥700 million
Ordinary income
¥900 million
Net income for the current fiscal year
¥900 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower wholesale gross profit¥-620 million
- Higher retail gross profit¥322 million
- Decline in gross profit margin¥-252 million
- Higher variable costs in retail and e-commerce¥-132 million
- Increase in personnel expenses¥-137 million
- M&A Expenses¥-88 million
- Increase in other expenses¥-10 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
For the second half, the company assumes continued growth in retail and lifestyle wholesale, consolidation benefits from シャルズ, and a recovery in wholesale apparel to the same level as the previous year, along with higher expenses associated with the weaker yen and retail growth. The only numerical assumption stated is an average exchange rate of ¥160/US$.New initiatives
- Making 株式会社シャルズ a subsidiary through the acquisition of its shares
- Launch of the new children’s clothing brand “JENNI”
- Launch of the nail brand “DASHING DIVA”
- Use of AI, visualization of in-store sales data, and deployment of AGV sorters at distribution centers
- Establishment of a ¥350 million share repurchase limit
Key KPIsA metric the company considers important as a management benchmark.
- Average exchange rate¥160 /US$Year on year against the same period last yearYen depreciation trend
- Total number of Instagram followers for the brand1.2 Year-on-year multipleYear on year against the same period last yearTargeting 1.2 times the previous year
- Number of customers350 companies
- Annual production volume5,000 10,000 passes
- Annual number of planned product styles20,000 Product number
Segment results
- Apparel wholesaleNet Sales19,941
- Lifestyle wholesaleNet Sales1,745
- RetailNet Sales6,669
- Other and consolidation adjustmentsNet Sales197
Medium-term management plan targets
Target fiscal yearFiscal year ending January 2028
Net Sales¥68.0 billion
Operating profit¥2 billion
ROE9.0% or more
Specialty retail sales¥33 billion
Men's revenue¥3 billion
Lifestyle wholesale sales¥5 billion
Retail sales¥14.0 billion
EC sales¥5 billion
Financial targets
ROE target9.0% or more
Actual resultsFor the fiscal year ended January 2026, shown as “~”
Number of employees
Number of Employees705 people
Breakdown595 employees on a non-consolidated basis
Annual Dividend
Annual dividend per share¥60
Payout ratio
Not disclosed (DOE target: 2.5% for the fiscal year ending January 2028)Acquisition of treasury shares
Buyback limitUp to ¥350 million
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending January 2027 |
| Net Sales | ¥28,554 million (YoY -2.3%) |
| Operating profit | ¥232 million (YoY -75.0%) |
| Ordinary income | ¥357 million (YoY -66.7%) |
| Net income | ¥101 million (YoY -88.5%) |
| Gross Profit Margin | Rate 27.6% / Year-on-year change (points) -0.6 |
| Operating profit margin | Rate 0.8% / Year-on-year change (points) Down from 3.2% in the same period of the previous year |
| Selling, general and administrative expenses | ¥7,662 million |
| Results for the three months of the current quarter | Net Sales ¥13,055 million / Operating profit ¥-115 million / Gross Profit Margin 28.0% |
| Full-year earnings forecast | Net Sales ¥61,000 million / Gross profit ¥16,616 million / Operating profit ¥700 million / Ordinary income ¥900 million / Net income for the current fiscal year ¥900 million |
| Segment results | Segment Apparel wholesale / Net Sales ¥19,941 million / yoy_pct ¥-7.1 million, Segment Lifestyle wholesale / Net Sales ¥1,745 million / yoy_pct ¥21.8 million, Segment Retail / Net Sales ¥6,669 million / yoy_pct ¥9.3 million, Segment Other and consolidation adjustments / Net Sales ¥197 million / yoy_pct ¥-13.7 million |
| Breakdown of Factors Affecting the Change | Factors Lower wholesale gross profit / Amount ¥-620 million, Factors Higher retail gross profit / Amount ¥322 million, Factors Decline in gross profit margin / Amount ¥-252 million, Factors Higher variable costs in retail and e-commerce / Amount ¥-132 million, Factors Increase in personnel expenses / Amount ¥-137 million, Factors M&A Expenses / Amount ¥-88 million, Factors Increase in other expenses / Amount ¥-10 million |
| Key KPIs | Indicator name Average exchange rate / Value ¥160 /US$ / Year on year against the same period last year Yen depreciation trend, Indicator name Total number of Instagram followers for the brand / Value 1.2 Year-on-year multiple / Year on year against the same period last year Targeting 1.2 times the previous year, Indicator name Number of customers / Value 350 companies / Year on year against the same period last year Not disclosed, Indicator name Annual production volume / Value 5,000 10,000 passes / Year on year against the same period last year Not disclosed, Indicator name Annual number of planned product styles / Value 20,000 Product number / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 705 people / Breakdown 595 employees on a non-consolidated basis |
| Assumptions Underlying the Business Outlook | For the second half, the company assumes continued growth in retail and lifestyle wholesale, consolidation benefits from シャルズ, and a recovery in wholesale apparel to the same level as the previous year, along with higher expenses associated with the weaker yen and retail growth. The only numerical assumption stated is an average exchange rate of ¥160/US$. |
| Medium-term management plan targets | Target fiscal year Fiscal year ending January 2028 / Net Sales ¥68.0 billion / Operating profit ¥2 billion / ROE 9.0% or more / Specialty retail sales ¥33 billion / Men's revenue ¥3 billion / Lifestyle wholesale sales ¥5 billion / Retail sales ¥14.0 billion / EC sales ¥5 billion |
| Financial targets | ROE target 9.0% or more / Actual results For the fiscal year ended January 2026, shown as “~” |
| Annual Dividend | Annual dividend per share ¥60 / Interim and Year-End Breakdown Not disclosed |
| Payout ratio | Not disclosed (DOE target: 2.5% for the fiscal year ending January 2028) |
| Acquisition of treasury shares | Buyback limit Up to ¥350 million / Number of Shares Not disclosed / Period Not disclosed |
| New initiatives | Making 株式会社シャルズ a subsidiary through the acquisition of its shares, Launch of the new children’s clothing brand “JENNI”, Launch of the nail brand “DASHING DIVA”, Use of AI, visualization of in-store sales data, and deployment of AGV sorters at distribution centers, Establishment of a ¥350 million share repurchase limit |
Items this document does not state (9)
Progress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookCapital 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 decline in revenue due to sluggish wholesale apparel sales to specialty stores, higher procurement costs due to the weaker yen, increased selling, general and administrative expenses, increases in personnel expenses and retail and e-commerce sales commissions, and one-off expenses such as M&A costs for シャルズ. Interim net income was also affected by the absence of gains on the sale of securities recorded in the previous year.
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