Worth reading
58In focus
Scored from 5 of 6 sectionsDirection
Neutral
Direction inferred from the company’s description.Scale
0.8
Increase in FC royalty rate (percentage points)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFiscal year ending March 20269 items taken from the company’s own explanation
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results exceeded the revised planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Factors behind the earnings upside: demand for winter tires caused by the cold wave, demand for summer tires as cold weather eased, individual store initiatives, and growth in sales of products.
- FC royalties: increased from 3.0% to 3.8% of net sales.
- Middle East situation: There has been no direct or significant impact at present, but the company is monitoring the potential impact on the procurement of new products.
- Selling, general and administrative expense ratio: The company plans to maintain the ratio at the low 30% range of net sales this fiscal year.
- Store expansion and human resources: Accelerate store openings nationwide and strengthen graduate and mid-career recruitment and training.
- U.S. stores: Both stores are performing well in terms of sales and purchasing, and the Ontario store has been profitable on a monthly basis since February. The company plans to open 1 additional store in California during fiscal 2026.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Individual store initiatives, demand for winter tires caused by the cold wave, demand for summer tires as cold weather eased, and growth in sales of products to business partners in the distribution and wholesale business
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company plans to maintain its selling, general and administrative expense ratio at the low 30% range of net sales this fiscal year. Cost-push inflation resulting from higher interest rates and surging crude oil prices is described qualitatively.New initiatives
- Nationwide expansion of store openings
- Opening 1 additional store in California during fiscal 2026
- Expansion of graduate recruitment and increased mid-career hiring
- Enhancement of training systems and content
- Implementation of new initiatives across the chain
Key KPIsA metric the company considers important as a management benchmark.
- FC royalty rate3.8 % of net salesYear on year against the same period last yearRaised from 3.0% to 3.8% from the second half of the previous fiscal year
- Personnel expense growth rate9.2 ％Year on year against the same period last yearPrevious fiscal year actual
- Number of U.S. stores2 Location
Segment results
Both the reuse and distribution and wholesale business formats exceeded their revised plans, but sales and profit figures were Not disclosedNumber of stores and locations
There are 2 U.S. stores. The number of openings and closures during the period was Not disclosed. The company plans to open 1 additional store in California during fiscal 2026.Number of employees
The number of employees was Not disclosed. The company is expanding graduate recruitment and increasing mid-career hiring.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Self-assessment against the plan | Results exceeded the revised plan |
| Segment results | Both the reuse and distribution and wholesale business formats exceeded their revised plans, but sales and profit figures were Not disclosed |
| Breakdown of Factors Affecting the Change | Individual store initiatives, demand for winter tires caused by the cold wave, demand for summer tires as cold weather eased, and growth in sales of products to business partners in the distribution and wholesale business |
| Key KPIs | Indicator name FC royalty rate / Value 3.8 % of net sales / Year on year against the same period last year Raised from 3.0% to 3.8% from the second half of the previous fiscal year, Indicator name Personnel expense growth rate / Value 9.2 ％ / Year on year against the same period last year Previous fiscal year actual, Indicator name Number of U.S. stores / Value 2 Location / Year on year against the same period last year Not disclosed |
| Number of stores and locations | There are 2 U.S. stores. The number of openings and closures during the period was Not disclosed. The company plans to open 1 additional store in California during fiscal 2026. |
| Number of employees | The number of employees was Not disclosed. The company is expanding graduate recruitment and increasing mid-career hiring. |
| Assumptions Underlying the Business Outlook | The company plans to maintain its selling, general and administrative expense ratio at the low 30% range of net sales this fiscal year. Cost-push inflation resulting from higher interest rates and surging crude oil prices is described qualitatively. |
| Key points of the Q&A | Factors behind the earnings upside: demand for winter tires caused by the cold wave, demand for summer tires as cold weather eased, individual store initiatives, and growth in sales of products., FC royalties: increased from 3.0% to 3.8% of net sales., Middle East situation: There has been no direct or significant impact at present, but the company is monitoring the potential impact on the procurement of new products., Selling, general and administrative expense ratio: The company plans to maintain the ratio at the low 30% range of net sales this fiscal year., Store expansion and human resources: Accelerate store openings nationwide and strengthen graduate and mid-career recruitment and training., U.S. stores: Both stores are performing well in terms of sales and purchasing, and the Ontario store has been profitable on a monthly basis since February. The company plans to open 1 additional store in California during fiscal 2026. |
| New initiatives | Nationwide expansion of store openings, Opening 1 additional store in California during fiscal 2026, Expansion of graduate recruitment and increased mid-career hiring, Enhancement of training systems and content, Implementation of new initiatives across the chain |
Items this document does not state (20)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial 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 attributed the earnings upside to demand for winter tires caused by the cold wave, subsequent replacement demand for summer tires, individual store initiatives, and growth in sales of products to business partners in the distribution and wholesale business. The increase in royalties was explained as providing funding for implementing new initiatives across the chain and maintaining and improving store quality.
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.