Worth reading
84Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
333
¥ million (year-on-year increase in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFirst quarter of the fiscal year ending February 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,518 million+115.2%
Operating profit¥76 million+77.6%
Ordinary income¥293 million
Net income¥185 million
Selling, general and administrative expensesAmount not stated
Gross Profit Margin
Rate19.9%
Year-on-year change (points)Down 1.5 percentage points
Operating profit margin
Rate3.0%
Year-on-year change (points)Down 1.5 percentage points
Results for the three months of the current quarterSales: ¥2,518 million; gross profit: ¥500 million; operating profit: ¥76 million; ordinary profit: ¥293 million; quarterly net income: ¥185 million; quarterly net income before goodwill amortization: ¥235 million.
Full-year earnings forecast
Net Sales
¥11,650 million
Operating profit
¥825 million
Ordinary income
¥1,082 million
Net income before amortization of goodwill
¥840 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales21.6%
Operating profit9.2%
Ordinary income27.1%
Net income before amortization of goodwill27.1%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Sales: resolution of inventory adjustments and production delays in India, improvements in inventory adjustments at certain business partners, and deliveries for large-scale projects. Gross profit: higher procurement costs caused by the weaker yen. Operating profit: strategic investments in marketing and human resources. Ordinary profit and net income: foreign exchange gains. Amounts by factor are not disclosed.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Average exchange rate during the first quarter¥157.71/USD (average for the first quarter)
Exchange rate at the end of May¥159.38/USD (as of the end of May)
Balance of forward exchange contracts at the end of the first quarterUS$45 million (balance of forward exchange contracts at the end of the first quarter)
Average forward exchange rate¥143.14/USD (average forward exchange rate)
New initiatives
- Expand Towel Laboratory's offline sales channels and exceed 2,000 stores carrying its products
- Expand the Towel Laboratory product lineup for Amazon.com in the United States
- Increase production of products jointly developed with Bic Camera
- Strategic investments in marketing and human resources
Key KPIsA metric the company considers important as a management benchmark.
- ROE29.3 %
- India production ratio21 %
- Number of stores carrying Towel Laboratory2,000 more than stores
- Amazon.co.jp sales142.3 % year on yearYear on year against the same period last year+42.3%
- Number of patents held21 Engagements
Segment results
As the company operates as a single segment, segment profit is not disclosed. Year-on-year sales before rebates by channel were 114.9% for ODM, 139.8% for character IP, and 96.3% for e-commerce.Financial targets
DOE: 9.9%. Medium-term financial targets such as ROE are not disclosed.Market Size / Share
The presentation states that the company was selected as one of the world's 15 major towel companies, but figures for market size and market share are not disclosed.Number of stores and locations
More than 2,000 stores carry Towel Laboratory products. The number of store openings and closures during the period is not disclosed.Number of employees
74 employees (as of the end of May 2026). Changes in headcount during the period and the hiring plan are not disclosed.Annual Dividend
Annual dividend per share¥42
InterimForecast: ¥21
End of periodForecast: ¥21
Acquisition of treasury shares
- Acquisition period1 February 2026 to 31 March 2026Number of shares acquired300,000 sharesAcquisition price¥205 million
- Acquisition date26 June 2026Number of shares acquired600,000 sharesAcquisition price¥436 million
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending February 2027 |
| Net Sales | ¥2,518 million (YoY +115.2%) |
| Operating profit | ¥76 million (YoY +77.6%) |
| Ordinary income | ¥293 million |
| Net income | ¥185 million |
| Gross Profit Margin | Rate 19.9% / Year-on-year change (points) Down 1.5 percentage points |
| Operating profit margin | Rate 3.0% / Year-on-year change (points) Down 1.5 percentage points |
| Selling, general and administrative expenses | 非開示 |
| Results for the three months of the current quarter | Sales: ¥2,518 million; gross profit: ¥500 million; operating profit: ¥76 million; ordinary profit: ¥293 million; quarterly net income: ¥185 million; quarterly net income before goodwill amortization: ¥235 million. |
| Full-year earnings forecast | Net Sales ¥11,650 million / Operating profit ¥825 million / Ordinary income ¥1,082 million / Net income before amortization of goodwill ¥840 million |
| Progress against full-year forecast | Net Sales 21.6% / Operating profit 9.2% / Ordinary income 27.1% / Net income before amortization of goodwill 27.1% |
| Segment results | As the company operates as a single segment, segment profit is not disclosed. Year-on-year sales before rebates by channel were 114.9% for ODM, 139.8% for character IP, and 96.3% for e-commerce. |
| Breakdown of Factors Affecting the Change | Sales: resolution of inventory adjustments and production delays in India, improvements in inventory adjustments at certain business partners, and deliveries for large-scale projects. Gross profit: higher procurement costs caused by the weaker yen. Operating profit: strategic investments in marketing and human resources. Ordinary profit and net income: foreign exchange gains. Amounts by factor are not disclosed. |
| Key KPIs | Indicator name ROE / Value 29.3 % / Year on year against the same period last year Not disclosed, Indicator name India production ratio / Value 21 % / Year on year against the same period last year Not disclosed, Indicator name Number of stores carrying Towel Laboratory / Value 2,000 more than stores / Year on year against the same period last year Not disclosed, Indicator name Amazon.co.jp sales / Value 142.3 % year on year / Year on year against the same period last year +42.3%, Indicator name Number of patents held / Value 21 Engagements / Year on year against the same period last year Not disclosed |
| Number of stores and locations | More than 2,000 stores carry Towel Laboratory products. The number of store openings and closures during the period is not disclosed. |
| Number of employees | 74 employees (as of the end of May 2026). Changes in headcount during the period and the hiring plan are not disclosed. |
| Assumptions Underlying the Business Outlook | Average exchange rate during the first quarter ¥157.71/USD (average for the first quarter) / Exchange rate at the end of May ¥159.38/USD (as of the end of May) / Balance of forward exchange contracts at the end of the first quarter US$45 million (balance of forward exchange contracts at the end of the first quarter) / Average forward exchange rate ¥143.14/USD (average forward exchange rate) |
| Financial targets | DOE: 9.9%. Medium-term financial targets such as ROE are not disclosed. |
| Annual Dividend | Annual dividend per share ¥42 / Interim Forecast: ¥21 / End of period Forecast: ¥21 |
| Acquisition of treasury shares | Acquisition period 1 February 2026 to 31 March 2026 / Number of shares acquired 300,000 shares / Acquisition price ¥205 million, Acquisition date 26 June 2026 / Number of shares acquired 600,000 shares / Acquisition price ¥436 million |
| Market Size / Share | The presentation states that the company was selected as one of the world's 15 major towel companies, but figures for market size and market share are not disclosed. |
| New initiatives | Expand Towel Laboratory's offline sales channels and exceed 2,000 stores carrying its products, Expand the Towel Laboratory product lineup for Amazon.com in the United States, Increase production of products jointly developed with Bic Camera, Strategic investments in marketing and human resources |
Items this document does not state (8)
Self-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioCapital 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.Sales increased due to the resolution of inventory adjustments in the previous fiscal year and production delays in India, improvements in inventory adjustments at certain business partners, and deliveries for large-scale projects. The gross profit margin deteriorated due to higher procurement costs caused by the weaker yen, but the impact was hedged through forward exchange contracts. Operating profit declined because the company prioritized strategic investments in marketing and human resources to support medium- to long-term growth. Ordinary profit and net income increased due to foreign exchange gains arising from the yen's further depreciation.
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.