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Financial results presentation7134UP GARAGE GROUP Co.,Ltd.Retail

Earnings Presentation Materials for the Fiscal Year Ending March 2026

In the fiscal year ended March 2026, revenue and operating profit reached record highs, driven by expanding demand for reused goods and new store openings, and exceeded the revised full-year forecasts. Net income, however, declined slightly due to the reversal of the tax effect.

Worth reading
86Important
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
1403
¥ million (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥15,384 million+10.0%
Operating profit¥1,103 million+5.7%
Ordinary income¥1,129 million+4.2%
Net income¥780 million-0.6%
Selling, general and administrative expenses¥5,057 million
Gross Profit Margin
Rate40.0%
Operating profit margin
Rate7.2%
Results for the three months of the current quarter
Net Sales
¥4,311 million+20.8%
Operating profit
¥499 million+14.4%
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Net Sales
¥17,000 million
Operating profit
¥1,400 million
Ordinary income
¥1,420 million
Net income
¥910 million
ROE
16.7 %
ROIC
15 %
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 Sales101.9% of the revised plan for the fiscal year ended March 2026
Operating profit102.2%
Ordinary income102.7%
Net income for the current fiscal year107.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Finished above the revised earnings forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
Company-operated stores¥455 million
FC¥146 million
Distribution and wholesale¥-6 million
Other¥-15 million
Selling, general and administrative expenses¥-190 million
Human Capital Investment¥-118 million
New Store Openings¥-213 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
New company-operated store openings7 stores
New franchise store openings10 stores
New Cycles store openings3 stores
New USA store openings1 store
New Tire Distribution Center affiliations30 stores
Tire Distribution Center sales105% year on year
NexLink sales105% year on year
New initiatives
  • Accelerate company-operated and franchise store openings
  • Develop and operate an AI purchasing appraisal function
  • Expand systems for automated selling prices and related functions
  • Strengthen the NexLink system usage model
  • One-to-one marketing for app members
  • Increase starting salaries for new graduates to as much as ¥335,000
  • Introduce new working arrangements
  • Declare a two-star rating under the SECURITY ACTION information security program
Key KPIsA metric the company considers important as a management benchmark.
  • Same-store sales (company-operated stores)105.4 %
  • Sales across all stores (company-operated stores)113.1 %
  • Same-store sales (franchise stores)105.9 %
  • Sales across all stores (franchise stores)107.6 %
  • App downloads70 10,000 downloads cumulative
  • Percentage of women in management positions14.8 %
    Year on year against the same period last year11.5% at the end of the previous fiscal year
  • Employee engagement survey scoreAA
    Year on year against the same period last yearAA in the previous year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average customer spend at company-operated stores
  • ¥12,850
  • ¥13,370
  • ¥13,640
Segment results
Reuse business
Net Sales
¥9,318 million+12.8%
Distribution and wholesale business
Net Sales
¥6,048 million+6.6%
Store sales
¥6,663 million+13.1%
Franchise-related business
¥1,498 million+14.8%
Tire Distribution Center
¥1,984 million+0.6%
NexLink
¥4,063 million+9.8%
Medium-term management plan targets
Fiscal year ending March 2029
Net Sales¥20.74 billion
Operating profit¥2.28 billion
2035–2040
Operating profit¥10.0 billion
Market capitalization¥100 billion
Financial targets
ROE
Actual results for the fiscal year ending March 202616.0%
Fiscal year ending March 2027: plan16.7%
Target for the fiscal year ending March 202920.0%
ROIC
Actual results for the fiscal year ending March 202614.1%
Fiscal year ending March 2027: plan15.0%
Cost of shareholders’ equityAround 9%
Number of stores and locations
End of period196 locations (45 company-operated, 149 franchise, 2 overseas)
Store openings during the period10 company-operated stores, 8 franchise stores, 1 Cycles store, and 1 USA store
Number of employees
Hires during the period41 new graduates and 24 experienced hires
Annual Dividend
Actual results for the fiscal year ending March 2026¥36.5
Forecast for the fiscal year ending March 2027¥42.5
Payout ratio
Fiscal year ending March 202637.0%
Forecast for the fiscal year ending March 202740.0%
TargetTarget level of 30%, rising to 40% in the fiscal year ending March 2029
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥15,384 million (YoY +10.0%)
Operating profit¥1,103 million (YoY +5.7%)
Ordinary income¥1,129 million (YoY +4.2%)
Net income¥780 million (YoY -0.6%)
Gross Profit MarginRate 40.0% / Year-on-year change (points) Not disclosed
Operating profit marginRate 7.2% / Year-on-year change (points) Not disclosed
Selling, general and administrative expenses¥5,057 million
Results for the three months of the current quarterNet Sales ¥4,311 million (YoY +20.8%) / Operating profit ¥499 million (YoY +14.4%)
Full-year earnings forecastFiscal Period Covered Fiscal year ending March 2027 / Net Sales ¥17,000 million / Operating profit ¥1,400 million / Ordinary income ¥1,420 million / Net income ¥910 million / ROE 16.7 % / ROIC 15 %
Progress against full-year forecastNet Sales 101.9% of the revised plan for the fiscal year ended March 2026 / Operating profit 102.2% / Ordinary income 102.7% / Net income for the current fiscal year 107.7%
Self-assessment against the planFinished above the revised earnings forecast
Segment resultsReuse business Net Sales ¥9,318 million (YoY +12.8%) / Distribution and wholesale business Net Sales ¥6,048 million (YoY +6.6%) / Store sales ¥6,663 million (YoY +13.1%) / Franchise-related business ¥1,498 million (YoY +14.8%) / Tire Distribution Center ¥1,984 million (YoY +0.6%) / NexLink ¥4,063 million (YoY +9.8%)
Breakdown of Factors Affecting the ChangeChange in operating profit Company-operated stores ¥455 million / FC ¥146 million / Distribution and wholesale ¥-6 million / Other ¥-15 million / Selling, general and administrative expenses ¥-190 million / Human Capital Investment ¥-118 million / New Store Openings ¥-213 million
Key KPIsSame-store sales (company-operated stores) 105.4 %, Sales across all stores (company-operated stores) 113.1 %, Same-store sales (franchise stores) 105.9 %, Sales across all stores (franchise stores) 107.6 %, App downloads 70 10,000 downloads (cumulative), Percentage of women in management positions 14.8 %, Employee engagement survey score AA
Unit price and quantity metricsAverage customer spend at company-operated stores ¥12,850, ¥13,370, ¥13,640 / Number of Customers Not disclosed
Number of stores and locationsEnd of period 196 locations (45 company-operated, 149 franchise, 2 overseas) / Store openings during the period 10 company-operated stores, 8 franchise stores, 1 Cycles store, and 1 USA store / Store closures during the period Not disclosed
Number of employeesNumber of Employees Not disclosed / Hires during the period 41 new graduates and 24 experienced hires
Assumptions Underlying the Business OutlookNew company-operated store openings 7 stores / New franchise store openings 10 stores / New Cycles store openings 3 stores / New USA store openings 1 store / New Tire Distribution Center affiliations 30 stores / Tire Distribution Center sales 105% year on year / NexLink sales 105% year on year
Medium-term management plan targetsFiscal year ending March 2029 Net Sales ¥20.74 billion / Operating profit ¥2.28 billion / 2035–2040 Operating profit ¥10.0 billion / Market capitalization ¥100 billion
Financial targetsROE Actual results for the fiscal year ending March 2026 16.0% / Fiscal year ending March 2027: plan 16.7% / Target for the fiscal year ending March 2029 20.0% / ROIC Actual results for the fiscal year ending March 2026 14.1% / Fiscal year ending March 2027: plan 15.0% / Cost of shareholders’ equity Around 9%
Annual DividendActual results for the fiscal year ending March 2026 ¥36.5 / Forecast for the fiscal year ending March 2027 ¥42.5 / Interim and Year-End Breakdown Not disclosed
Payout ratioFiscal year ending March 2026 37.0% / Forecast for the fiscal year ending March 2027 40.0% / Target Target level of 30%, rising to 40% in the fiscal year ending March 2029
New initiativesAccelerate company-operated and franchise store openings, Develop and operate an AI purchasing appraisal function, Expand systems for automated selling prices and related functions, Strengthen the NexLink system usage model, One-to-one marketing for app members, Increase starting salaries for new graduates to as much as ¥335,000, Introduce new working arrangements, Declare a two-star rating under the SECURITY ACTION information security program
Items this document does not state (6)
Risk amount incorporated into the outlookAcquisition 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.

Higher revenue and operating profit were supported by expanding demand for reused goods, new company-operated and franchise store openings, strong performance at existing stores, and higher franchise royalties from the second half of the year. Net income declined due to the reversal of a temporary factor from the previous fiscal year, when the recoverability of deferred tax assets was reassessed.

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Earnings Presentation Materials for the Fiscal Year Ending March 2026 | UP GARAGE GROUP Co.,Ltd. (7134) timely disclosure | Komori