Worth reading
58In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
48.5
Year-on-year revenue growth (%)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,651 million+48.5%
Operating profit¥133 million
Gross Profit Margin27.5 %
Operating profit margin3.6 %
Selling, general and administrative expenses¥871 million
Results for the three months of the current quarterDaikokuya standalone: first-quarter net sales of ¥3,424 million and operating income of ¥286 million. On-site purchasing: first-quarter net sales of ¥168 million and an operating loss of ¥59 million. On a monthly basis, the business turned profitable at the operating level in June. Key KPIs were 5,138 visits, 5.8 appointments per person per day, gross profit of ¥31,222 per visit, and appointment acquisition costs of ¥8,565 per appointment.
Full-year earnings forecast
Net Sales
¥22,251 million
Operating profit
¥1,315 million
Ordinary income
¥1,137 million
Net income for the current fiscal year
¥625 million
Merchandise inventory (period-end)
¥46 100 million
Cross ratio
0.9 Year
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。
Consolidated revenue16.4%
Consolidated operating profit10.1%
Product inventory73.7%
Daikokuya net sales17.0%
Daikokuya gross profit21.5%
Daikokuya selling, general and administrative expenses21.0%
Daikokuya operating income22.6%
On-site purchasing revenue9.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Daikokuya's top line was broadly in line with the plan. Inventory progress was also broadly in line with the plan, but there was a ¥1,209 million shortfall against the full-year target.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Consolidation and launch of the on-site purchasing business¥168 million
- SG&A cost reduction¥101 million reduction
- One-off expenses related to M&A and other itemsApproximately ¥100 million
- Year-on-year increase in merchandise inventory¥2,063 million increase
- Variance from the full-year merchandise inventory plan¥1,209 million below target
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Inventory value (period-end)¥4.6 billion
Cross ratio (years)0.9
New initiatives
- Business alliance with Bellco
- Launch of initiatives targeting wholesale and corporate purchasing
- Launch of initiatives targeting live commerce
- Consideration of opening a permanent store at Nakano Broadway
- Reopening of stores where sales have been suspended
- Expansion of the call center and relocation to Sendai
- Preparations to commercialize corporate finance services, including lending, investment and pawn financing
Key KPIsA metric the company considers important as a management benchmark.
- Product inventory¥3,391 millionYear on year against the same period last year+155.3%
- Cross ratio (years)0.9 Year
- Number of visits5,138 Engagements
- Appointments per person per day5.8 Appointments/day
- Gross profit per visit¥31,222
- Appointment acquisition cost per appointment8,565 Yen/visit
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of visits5,138
Appointments per person per day5.8
Gross profit per visit31,222
Appointment acquisition cost per appointment8,565
Segment results
Daikokuya
Net Sales
¥3,424 million+43.7%
Operating profit
¥286 million
On-site purchasing
Net Sales
¥168 million
Operating profit
¥-59 million
Other
Net Sales
¥60 million-21.1%
Number of stores and locations
24 locations nationwide, including 15 retail stores. The company held a watch sales event at Nakano Broadway and aims to make it a permanent operation from September. The number of store openings and closures during the period was not disclosed.Number of employees
The company plans to expand its sales staff from a 21-person structure to more than 100 employees. Other employee figures and changes during the period were not disclosed.| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥3,651 million (YoY +48.5%) |
| Operating profit | ¥133 million |
| Gross Profit Margin | 27.5 % |
| Operating profit margin | 3.6 % |
| Selling, general and administrative expenses | ¥871 million |
| Results for the three months of the current quarter | Daikokuya standalone: first-quarter net sales of ¥3,424 million and operating income of ¥286 million. On-site purchasing: first-quarter net sales of ¥168 million and an operating loss of ¥59 million. On a monthly basis, the business turned profitable at the operating level in June. Key KPIs were 5,138 visits, 5.8 appointments per person per day, gross profit of ¥31,222 per visit, and appointment acquisition costs of ¥8,565 per appointment. |
| Full-year earnings forecast | Net Sales ¥22,251 million / Operating profit ¥1,315 million / Ordinary income ¥1,137 million / Net income for the current fiscal year ¥625 million / Merchandise inventory (period-end) ¥46 100 million / Cross ratio 0.9 Year |
| Progress against full-year forecast | Consolidated revenue 16.4% / Consolidated operating profit 10.1% / Product inventory 73.7% / Daikokuya net sales 17.0% / Daikokuya gross profit 21.5% / Daikokuya selling, general and administrative expenses 21.0% / Daikokuya operating income 22.6% / On-site purchasing revenue 9.6% |
| Self-assessment against the plan | Daikokuya's top line was broadly in line with the plan. Inventory progress was also broadly in line with the plan, but there was a ¥1,209 million shortfall against the full-year target. |
| Segment results | Daikokuya Net Sales ¥3,424 million (YoY +43.7%) / Operating profit ¥286 million / On-site purchasing Net Sales ¥168 million / Operating profit ¥-59 million / Other Net Sales ¥60 million (YoY -21.1%) |
| Breakdown of Factors Affecting the Change | Factors Consolidation and launch of the on-site purchasing business / Amount ¥168 million, Factors SG&A cost reduction / Amount ¥101 million reduction, Factors One-off expenses related to M&A and other items / Amount Approximately ¥100 million, Factors Year-on-year increase in merchandise inventory / Amount ¥2,063 million increase, Factors Variance from the full-year merchandise inventory plan / Amount ¥1,209 million below target |
| Key KPIs | Indicator name Product inventory / Value ¥3,391 million / Year on year against the same period last year ¥155.3 million, Indicator name Cross ratio (years) / Value 0.9 Year / Year on year against the same period last year Not disclosed, Indicator name Number of visits / Value 5,138 Engagements / Year on year against the same period last year Not disclosed, Indicator name Appointments per person per day / Value 5.8 Appointments/day / Year on year against the same period last year Not disclosed, Indicator name Gross profit per visit / Value ¥31,222 / Year on year against the same period last year Not disclosed, Indicator name Appointment acquisition cost per appointment / Value 8,565 Yen/visit / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Number of visits 5,138 / Appointments per person per day 5.8 / Gross profit per visit 31,222 / Appointment acquisition cost per appointment 8,565 |
| Number of stores and locations | 24 locations nationwide, including 15 retail stores. The company held a watch sales event at Nakano Broadway and aims to make it a permanent operation from September. The number of store openings and closures during the period was not disclosed. |
| Number of employees | The company plans to expand its sales staff from a 21-person structure to more than 100 employees. Other employee figures and changes during the period were not disclosed. |
| Assumptions Underlying the Business Outlook | Inventory value (period-end) ¥4.6 billion / Cross ratio (years) 0.9 |
| New initiatives | Business alliance with Bellco, Launch of initiatives targeting wholesale and corporate purchasing, Launch of initiatives targeting live commerce, Consideration of opening a permanent store at Nakano Broadway, Reopening of stores where sales have been suspended, Expansion of the call center and relocation to Sendai, Preparations to commercialize corporate finance services, including lending, investment and pawn financing |
Items this document does not state (12)
Ordinary incomeNet incomeRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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.In addition to the launch of the on-site purchasing business, sales revenue at Daikokuya significantly exceeded the previous year. Improvements in the gross profit margin from reviewing selling prices, together with selling, general and administrative expense reductions implemented in the fourth quarter of the previous fiscal year, also contributed. Operating income was positive despite approximately ¥100 million in one-off expenses, including M&A expenses.
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