Worth reading
60In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
30
¥100 million (full-year operating profit forecast)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFY2026 First Quarter11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profitApproximately 2
Results for the three months of the current quarterOperating profit: approximately ¥200 million. Gross profit from the D2C/EC business: ¥2.46 billion, including ¥640 million contributed by サン・スマイル.
Full-year earnings forecast
Operating profit
30 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Tracking above the internal planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Progress in first-quarter operating profit against the full-year plan: first-quarter operating profit was approximately ¥200 million against a full-year forecast of ¥3 billion, but was above the internal plan. The company plans to build profit in the second half due to seasonality.
- Productivity improvements through the use of AI: approximately 60% of planning work in the marketing business in Japan can be handled by AI, and the company will roll this out globally, starting with areas offering the greatest benefits.
- Costs associated with increased AI use: related IT costs are expected to increase, but currently account for only a very small portion of total SG&A expenses, and the company explained that the productivity gains will outweigh the costs.
- Differences in operating profit margins by country in the marketing business: factors include productivity issues caused by excess personnel and high base costs such as personnel expenses. The company plans to improve margins through AI automation, business-process standardization, and office consolidation.
- Performance of the existing D2C/EC businesses: excluding サン・スマイル, existing businesses were largely unchanged from the previous quarter. They are exceeding plan despite seasonality.
- Revenue per brand in the corporate EC support business: an upward trend is expected, driven by the acquisition and growth of large customers, the consolidation of サン・スマイル, and expansion across multiple countries.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Seasonality, the profit contribution from the creator-support business in the same quarter of the previous year, domestic office expansion costs, and the consolidation effect of サン・スマイル (¥640 million in gross profit).
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The business is seasonal, with the first quarter typically the weakest and revenue and gross profit tending to expand from the second through the fourth quarters. The effect of AI adoption was estimated conservatively in the initial forecast for fiscal 2026. Productivity improvements are expected to emerge incrementally over 1–2 years.New initiatives
- AI agent and business-automation projects led by the in-house development team
- Global rollout of AI automation processes pioneered in Japan
- Embedding and continuously updating AI-based workflows
- Improving profit margins through business-process standardization and office consolidation
- Increasing front-line personnel, including sales staff, while limiting hiring of delivery personnel
Key KPIsA metric the company considers important as a management benchmark.
- Percentage of planning work that can be handled by AI in the marketing business in Japan60 %
- Number of employeesLargely unchanged from April to May
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Revenue per brand and average revenue per brand in the corporate EC support business. Figures: not disclosed.Segment results
Gross profit from the D2C/EC business: ¥1.83 billion in the fourth quarter of fiscal 2025 and ¥2.46 billion in the first quarter of fiscal 2026. サン・スマイル contributed ¥640 million in the first quarter. Sales and profit for other segments: not disclosed.Medium-term management plan targets
The medium-term targets through fiscal 2027 state that productivity improvements through the use of AI are assumed. Specific target figures: not disclosed.Number of stores and locations
Number of offices and locations, and openings and closures during the period: not disclosed. The company explained its policy of supporting operations at high-cost locations from other countries.Number of employees
Largely unchanged from April to May. The company plans to increase front-line personnel, including sales staff, while limiting hiring of delivery personnel. It will assess going forward whether the year-end headcount for 2026 will increase or decrease slightly.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | FY2026 First Quarter |
| Operating profit | Approximately 2 |
| Results for the three months of the current quarter | Operating profit: approximately ¥200 million. Gross profit from the D2C/EC business: ¥2.46 billion, including ¥640 million contributed by サン・スマイル. |
| Full-year earnings forecast | Operating profit 30 Hundreds of millions of yen |
| Self-assessment against the plan | Tracking above the internal plan |
| Segment results | Gross profit from the D2C/EC business: ¥1.83 billion in the fourth quarter of fiscal 2025 and ¥2.46 billion in the first quarter of fiscal 2026. サン・スマイル contributed ¥640 million in the first quarter. Sales and profit for other segments: not disclosed. |
| Breakdown of Factors Affecting the Change | Seasonality, the profit contribution from the creator-support business in the same quarter of the previous year, domestic office expansion costs, and the consolidation effect of サン・スマイル (¥640 million in gross profit). |
| Key KPIs | Indicator name Percentage of planning work that can be handled by AI in the marketing business in Japan / Value 60 % / Year on year against the same period last year Not disclosed, Indicator name Number of employees / Value Largely unchanged from April to May / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Revenue per brand and average revenue per brand in the corporate EC support business. Figures: not disclosed. |
| Number of stores and locations | Number of offices and locations, and openings and closures during the period: not disclosed. The company explained its policy of supporting operations at high-cost locations from other countries. |
| Number of employees | Largely unchanged from April to May. The company plans to increase front-line personnel, including sales staff, while limiting hiring of delivery personnel. It will assess going forward whether the year-end headcount for 2026 will increase or decrease slightly. |
| Assumptions Underlying the Business Outlook | The business is seasonal, with the first quarter typically the weakest and revenue and gross profit tending to expand from the second through the fourth quarters. The effect of AI adoption was estimated conservatively in the initial forecast for fiscal 2026. Productivity improvements are expected to emerge incrementally over 1–2 years. |
| Medium-term management plan targets | The medium-term targets through fiscal 2027 state that productivity improvements through the use of AI are assumed. Specific target figures: not disclosed. |
| Key points of the Q&A | Progress in first-quarter operating profit against the full-year plan: first-quarter operating profit was approximately ¥200 million against a full-year forecast of ¥3 billion, but was above the internal plan. The company plans to build profit in the second half due to seasonality., Productivity improvements through the use of AI: approximately 60% of planning work in the marketing business in Japan can be handled by AI, and the company will roll this out globally, starting with areas offering the greatest benefits., Costs associated with increased AI use: related IT costs are expected to increase, but currently account for only a very small portion of total SG&A expenses, and the company explained that the productivity gains will outweigh the costs., Differences in operating profit margins by country in the marketing business: factors include productivity issues caused by excess personnel and high base costs such as personnel expenses. The company plans to improve margins through AI automation, business-process standardization, and office consolidation., Performance of the existing D2C/EC businesses: excluding サン・スマイル, existing businesses were largely unchanged from the previous quarter. They are exceeding plan despite seasonality., Revenue per brand in the corporate EC support business: an upward trend is expected, driven by the acquisition and growth of large customers, the consolidation of サン・スマイル, and expansion across multiple countries. |
| New initiatives | AI agent and business-automation projects led by the in-house development team, Global rollout of AI automation processes pioneered in Japan, Embedding and continuously updating AI-based workflows, Improving profit margins through business-process standardization and office consolidation, Increasing front-line personnel, including sales staff, while limiting hiring of delivery personnel |
Items this document does not state (15)
Net SalesOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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 company cited seasonality, with the first quarter being the weakest, the fact that selling, general and administrative expenses consist primarily of fixed costs such as personnel expenses, the significant profit contribution from the creator-support business in the same quarter of the previous year, and the absence of related costs before the expansion of domestic offices. It also explained that it is pursuing the automation of operations using AI, standardization of business processes, consolidation of offices, and a review of its personnel mix.
How to read this page
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