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Presentation materials for financial results5888DAIWA CYCLE CO.,LTD.Retail

Financial Results Presentation for the Interim Period of the Fiscal Year Ending January 2027

In the interim period of the fiscal year ending January 2027, revenue increased 11.8% year on year to a record high, mainly due to the increase in the number of stores. Operating profit declined 1.1% year on year due to higher growth investments and other factors, but exceeded the initial forecast by 5.1%.

Worth reading
71In 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
11.8
Year-on-year change in revenue (%)
Wording
Definitive
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsInterim period of the fiscal year ending January 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,352 million+11.8%
Operating profit¥886 million-1.1%
Ordinary income¥891 million-2.2%
Net income¥560 million-2.5%
Selling, general and administrative expenses¥4,342 million
Gross Profit Margin42.3%, down 0.5 percentage points year on year
Operating profit margin7.2%, down 0.9 percentage points year on year
Results for the three months of the current quarter
Net Sales
¥5,391 million
Operating profit
¥229 million
Full-year earnings forecast
Net Sales
¥24,293 million
Operating profit
¥1,490 million
Ordinary income
¥1,519 million
Net income for the current fiscal year
¥1,006 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 Sales50.8%
Operating profit59.5%
Ordinary income58.7%
Interim net income55.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue was 2.3% below the initial forecast, while operating profit was 5.1% above the initial forecast
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Foreign exchange impact: yen depreciation is a factor increasing costs because the Company purchases private-label products in US dollars and yuan, but the Company is working to mitigate the impact through price increases and other measures
  2. Seasonality: spring is the peak demand season, and sales and operating profit are concentrated in the first half
  3. First-quarter gross profit margin: the high proportion of bicycle sales lowers the overall profit margin
  4. Changes in average spend per customer: average spend rises as the proportion of bicycle sales increases, while customer count rises and average spend declines as the proportion of repair services increases
  5. Middle East situation: the Company has received requests for price increases for some oil-related products, but the impact to date has been limited
  6. Store opening costs: approximately ¥30 million to ¥50 million per store
  7. Shareholder benefits: the Company is not considering introducing a program at this time
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Net sales
  • Cost of sales
  • Personnel expenses due to the increase in employee numbers and salary revisions
  • Rent and lease expenses associated with the addition of 19 company-operated stores
  • Payment commissions
  • Depreciation
  • Other
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed exchange rate: ¥155 per US dollar
  • 20 stores to be opened and 0 stores to be closed in the fiscal year ending January 2027
New initiatives
  • Price increases for private-label products and certain repair labor charges
  • Plan to open 20 new stores in the fiscal year ending January 2027
Key KPIsA metric the company considers important as a management benchmark.
  • Private-label sales ratio33.8 %
    Year on year against the same period last year+1.1 percentage points
  • Cumulative revenue at existing stores101.4 % year on year
    Year on year against the same period last year+1.4%
  • Cumulative customer count at existing stores102.2 % year on year
    Year on year against the same period last year+2.2%
  • Cumulative average spend per customer at existing stores99.2 % year on year
    Year on year against the same period last year-0.8%
  • Store count164 stores
    Year on year against the same period last year+19 stores
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of Customers102.2% year on year
Average Spend per Customer99.2% year on year
Same-Store Sales101.4% year on year
Market Size / Share
Share of sales from electric-assist bicycles: 65% for the Company, 48% for the industry as a whole. Electric-assist bicycle sales growth rate (5-year CAGR through the fiscal year ended January 2026): 19% for the Company, 3% for the industry as a whole
Number of stores and locations
End of period164 stores (160 company-operated, 4 franchised)
During the period10 stores opened, 0 stores closed
Number of employees
881 employees (as of the end of January 2026)
Annual Dividend
¥73.0 per share (forecast; interim and year-end breakdown: Not disclosed)
Payout ratio
20.0%
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredInterim period of the fiscal year ending January 2027
Net Sales¥12,352 million (YoY +11.8%)
Operating profit¥886 million (YoY -1.1%)
Ordinary income¥891 million (YoY -2.2%)
Net income¥560 million (YoY -2.5%)
Gross Profit Margin42.3%, down 0.5 percentage points year on year
Operating profit margin7.2%, down 0.9 percentage points year on year
Selling, general and administrative expenses¥4,342 million
Results for the three months of the current quarterNet Sales ¥5,391 million / Operating profit ¥229 million
Full-year earnings forecastNet Sales ¥24,293 million / Operating profit ¥1,490 million / Ordinary income ¥1,519 million / Net income for the current fiscal year ¥1,006 million
Progress against full-year forecastNet Sales 50.8% / Operating profit 59.5% / Ordinary income 58.7% / Interim net income 55.7%
Self-assessment against the planRevenue was 2.3% below the initial forecast, while operating profit was 5.1% above the initial forecast
Breakdown of Factors Affecting the ChangeNet sales, Cost of sales, Personnel expenses due to the increase in employee numbers and salary revisions, Rent and lease expenses associated with the addition of 19 company-operated stores, Payment commissions, Depreciation, Other
Key KPIsIndicator name Private-label sales ratio / Value 33.8 % / Year on year against the same period last year +1.1 percentage points, Indicator name Cumulative revenue at existing stores / Value 101.4 % year on year / Year on year against the same period last year +1.4%, Indicator name Cumulative customer count at existing stores / Value 102.2 % year on year / Year on year against the same period last year +2.2%, Indicator name Cumulative average spend per customer at existing stores / Value 99.2 % year on year / Year on year against the same period last year -0.8%, Indicator name Store count / Value 164 stores / Year on year against the same period last year +19 stores
Unit price and quantity metricsNumber of Customers 102.2% year on year / Average Spend per Customer 99.2% year on year / Same-Store Sales 101.4% year on year
Number of stores and locationsEnd of period 164 stores (160 company-operated, 4 franchised) / During the period 10 stores opened, 0 stores closed
Number of employees881 employees (as of the end of January 2026)
Assumptions Underlying the Business OutlookAssumed exchange rate: ¥155 per US dollar, 20 stores to be opened and 0 stores to be closed in the fiscal year ending January 2027
Annual Dividend¥73.0 per share (forecast; interim and year-end breakdown: Not disclosed)
Payout ratio20.0%
Market Size / ShareShare of sales from electric-assist bicycles: 65% for the Company, 48% for the industry as a whole. Electric-assist bicycle sales growth rate (5-year CAGR through the fiscal year ended January 2026): 19% for the Company, 3% for the industry as a whole
Key points of the Q&AForeign exchange impact: yen depreciation is a factor increasing costs because the Company purchases private-label products in US dollars and yuan, but the Company is working to mitigate the impact through price increases and other measures, Seasonality: spring is the peak demand season, and sales and operating profit are concentrated in the first half, First-quarter gross profit margin: the high proportion of bicycle sales lowers the overall profit margin, Changes in average spend per customer: average spend rises as the proportion of bicycle sales increases, while customer count rises and average spend declines as the proportion of repair services increases, Middle East situation: the Company has received requests for price increases for some oil-related products, but the impact to date has been limited, Store opening costs: approximately ¥30 million to ¥50 million per store, Shareholder benefits: the Company is not considering introducing a program at this time
New initiativesPrice increases for private-label products and certain repair labor charges, Plan to open 20 new stores in the fiscal year ending January 2027
Items this document does not state (7)
Segment resultsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlog

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.

Revenue increased due to the increase in the number of stores, the contribution from new stores, and higher sales at existing stores. Operating profit declined due to growth investments, including increased staffing associated with store expansion, new store opening costs, and salary revisions, as well as a higher cost ratio. Gross profit margin declined due to adverse foreign exchange movements and sales promotion activities.

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Financial Results Presentation for the Interim Period of the Fiscal Year Ending January 2027 | DAIWA CYCLE CO.,LTD. (5888) timely disclosure | Komori