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Financial results presentation3415TOKYO BASE Co.,Ltd.Retail

Earnings Presentation Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending January 2027

Revenue increased in the first half, driven by expanded store openings and growth in the domestic e-commerce and overseas businesses. Operating profit, ordinary profit and net income also exceeded the year-earlier period. However, the operating profit margin and gross profit margin declined due to upfront costs for store openings in Hong Kong and new-format development, as well as inventory clearance. The full-year forecast was left unchanged.

Worth reading
66In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
21.1
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst half (interim period) 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¥12,466 million+21.1%
Operating profit¥857 million+7.8%
Ordinary income¥920 million+34.8%
Net income¥518 million+11.9%
Gross Profit Margin53.6%
Operating profit margin6.9%
Selling, general and administrative expenses¥5,822 million
Full-year earnings forecast
Net Sales
¥28,000 million
Operating profit
¥2,500 million
Ordinary income
¥2,200 million
Profit for the period
¥1,500 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Although first-half operating profit was slightly below plan, the company performed well by offsetting restrained purchasing through sales capabilities
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in physical-store sales from expanded store openings in Japan+¥1.4 billion
  • Of which, increase in inbound sales+¥1.01 billion
  • Increase in e-commerce sales+¥570 million
  • Increase in overseas business revenue+¥300 million
  • Other (changes under the revenue recognition standard)-¥160 million
  • Change in sales mix due to increased revenue from the overseas business, which has a high gross margin structure+0.1 percentage points year on year
  • Change in business mix due to increased revenue from the Select business-0.3 percentage points
  • Accelerated clearance of prior fiscal year's spring/summer inventory-0.1 percentage points
New initiatives
  • Development of new KEY TIMEZ formats and store openings
  • Resume expanding the network of stores in Shanghai, China, from the second half of the current fiscal year, with up to 7 stores to be opened by the first half of the next fiscal year
  • Multi-store expansion of the US and South Korean businesses and their inclusion in the consolidated accounts next fiscal year
  • Open 3 UNITED TOKYO, PUBLIC TOKYO and CITY stores simultaneously in Taiwan
  • Establishment of a ¥3 billion commitment line through bank financing
  • Share repurchases
Key KPIsA metric the company considers important as a management benchmark.
  • Same-store sales at physical stores in Japan96.4 Year on year %
  • Total same-store sales105.7 Year on year %
  • Inbound sales¥3,285 million
    Year on year against the same period last year+144.5%
  • Inbound share of physical-store sales36.4 %
  • Inventory value in Japan99.2 Year on year %
  • Average spend per customer¥44,149
    Year on year against the same period last year+13.1%
  • Number of brands sold overseas138 Brand
  • Number of Star Sales program employees with expected annual income above ¥8 million62 People
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Average spend per customer¥44,149
    Year on year against the same period last year+13.1%
Segment results
  • Japan
    Net Sales¥11,350 million (YoY +19.9%)
    Operating profit¥881 million (YoY +10.9%)
  • Hong Kong
    Net Sales¥473 million (YoY +62.7%)
    Operating profit¥-52 million
  • China
    Net Sales¥641 million (YoY +22.5%)
    Operating profit¥29 million
Medium-term management plan targets
ROE20%
Target fiscal yearFiscal year ending January 2028 (medium-term plan target achieved one year ahead of schedule)
Financial targets
ROE
TargetMore than 20%
Actual resultsNot disclosed for the first half of the fiscal year ending January 2027; 19.2% for the fiscal year ended January 2026
Number of stores and locations
Number of Stores at Period-End
Total Group Stores (including e-commerce stores)119
Consolidated Store Count (including e-commerce stores)116
Consolidated Physical Store Count103
Japan physical stores87
Physical Stores in Hong Kong9
Physical Stores in China7
Stores opened during the period
Group17
Consolidated16
Japan physical stores12
Physical Stores in Hong Kong3
Stores closed during the period
Group4
Consolidated4
Japan physical stores4
Physical Stores in Hong Kong0
Number of employees
331 store staff, of whom 62 have expected annual income above ¥8 million. Total employees and hiring plan: not disclosed
Acquisition of treasury shares
Acquisition priceApproximately ¥500 million
Number of shares acquired1,341,100 shares
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst half (interim period) of the fiscal year ending January 2027
Net Sales¥12,466 million (YoY +21.1%)
Operating profit¥857 million (YoY +7.8%)
Ordinary income¥920 million (YoY +34.8%)
Net income¥518 million (YoY +11.9%)
Gross Profit Margin53.6%
Operating profit margin6.9%
Selling, general and administrative expenses¥5,822 million
Full-year earnings forecastNet Sales ¥28,000 million / Operating profit ¥2,500 million / Ordinary income ¥2,200 million / Profit for the period ¥1,500 million
Self-assessment against the planAlthough first-half operating profit was slightly below plan, the company performed well by offsetting restrained purchasing through sales capabilities
Segment resultsSegment Japan / Net Sales ¥11,350 million (YoY +19.9%) / Operating profit ¥881 million (YoY +10.9%), Segment Hong Kong / Net Sales ¥473 million (YoY +62.7%) / Operating profit ¥-52 million, Segment China / Net Sales ¥641 million (YoY +22.5%) / Operating profit ¥29 million
Breakdown of Factors Affecting the ChangeItem Increase in physical-store sales from expanded store openings in Japan / Amount +¥1.4 billion, Item Of which, increase in inbound sales / Amount +¥1.01 billion, Item Increase in e-commerce sales / Amount +¥570 million, Item Increase in overseas business revenue / Amount +¥300 million, Item Other (changes under the revenue recognition standard) / Amount -¥160 million, Item Change in sales mix due to increased revenue from the overseas business, which has a high gross margin structure / Amount +0.1 percentage points year on year, Item Change in business mix due to increased revenue from the Select business / Amount -0.3 percentage points, Item Accelerated clearance of prior fiscal year's spring/summer inventory / Amount -0.1 percentage points
Key KPIsIndicator Same-store sales at physical stores in Japan / Value 96.4 Year on year (%) / Year on year against the same period last year Not disclosed, Indicator Total same-store sales / Value 105.7 Year on year (%) / Year on year against the same period last year Not disclosed, Indicator Inbound sales / Value ¥3,285 million / Year on year against the same period last year ¥144.5 million, Indicator Inbound share of physical-store sales / Value 36.4 % / Year on year against the same period last year Not disclosed, Indicator Inventory value in Japan / Value 99.2 Year on year (%) / Year on year against the same period last year Not disclosed, Indicator Average spend per customer / Value ¥44,149 / Year on year against the same period last year ¥13.1, Indicator Number of brands sold overseas / Value 138 Brand / Year on year against the same period last year Not disclosed, Indicator Number of Star Sales program employees with expected annual income above ¥8 million / Value 62 People / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator Average spend per customer / Value ¥44,149 / Year on year against the same period last year ¥13.1
Number of stores and locationsNumber of Stores at Period-End Total Group Stores (including e-commerce stores) 119 / Consolidated Store Count (including e-commerce stores) 116 / Consolidated Physical Store Count 103 / Japan physical stores 87 / Physical Stores in Hong Kong 9 / Physical Stores in China 7 / Stores opened during the period Group 17 / Consolidated 16 / Japan physical stores 12 / Physical Stores in Hong Kong 3 / Stores closed during the period Group 4 / Consolidated 4 / Japan physical stores 4 / Physical Stores in Hong Kong 0
Number of employees331 store staff, of whom 62 have expected annual income above ¥8 million. Total employees and hiring plan: not disclosed
Medium-term management plan targetsROE 20% / Target fiscal year Fiscal year ending January 2028 (medium-term plan target achieved one year ahead of schedule)
Financial targetsROE Target More than 20% / Actual results Not disclosed for the first half of the fiscal year ending January 2027; 19.2% for the fiscal year ended January 2026
Acquisition of treasury sharesAcquisition price Approximately ¥500 million / Number of shares acquired 1,341,100 shares / Acquisition period Not disclosed
New initiativesDevelopment of new KEY TIMEZ formats and store openings, Resume expanding the network of stores in Shanghai, China, from the second half of the current fiscal year, with up to 7 stores to be opened by the first half of the next fiscal year, Multi-store expansion of the US and South Korean businesses and their inclusion in the consolidated accounts next fiscal year, Open 3 UNITED TOKYO, PUBLIC TOKYO and CITY stores simultaneously in Taiwan, Establishment of a ¥3 billion commitment line through bank financing, Share repurchases
Items this document does not state (10)
Results for the three months of the current quarterProgress against full-year forecastAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioCapital 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.

Expanded store openings in Japan and growth in domestic e-commerce and the overseas business drove the increase in revenue. Same-store sales declined due to restrained purchasing, but inventory levels normalized. The operating profit margin declined due to upfront costs associated with store openings in the Hong Kong business and KEY TIMEZ development, while ordinary profit increased due to foreign exchange gains amid the yen's weakening trend.

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Earnings Presentation Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending January 2027 | TOKYO BASE Co.,Ltd. (3415) timely disclosure | Komori