Worth reading
83Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
2.6
¥100 million (year-on-year decrease in ordinary income)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales203.6 Hundreds of millions of yen+3.3%
Operating profit5 Hundreds of millions of yen-34.3%
Ordinary income7.4 Hundreds of millions of yen-25.4%
Net income¥5.5 100 million -13.5%quarterly net income attributable to owners of the parent
Gross Profit Margin27.2 %
Operating profit margin2.5 %
Results for the three months of the current quarterRevenue: ¥20.36 billion; operating profit: ¥500 million; ordinary profit: ¥740 million; quarterly net profit attributable to owners of the parent: ¥550 million
Full-year earnings forecast
Net Sales
880 Hundreds of millions of yen
Operating profit
44 Hundreds of millions of yen
Ordinary income
50 Hundreds of millions of yen
Profit attributable to owners of the parent
37 Hundreds of millions of yen
Earnings per share
¥149.1
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 Sales23.1 %
Operating profit11.4 %
Ordinary income15 %
Profit attributable to owners of parent for the quarter14.9 %
Quarterly earnings per share15.2 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress ahead of plan for both revenue and profitKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Business progress: Progress was ahead of plan for both revenue and profit. The brand is proceeding with investments in advertising and stores, with profit concentrated in the second half, when demand for the fall/winter season increases.
- Decline in profit margins: Gross profit margin declined due to higher costs stemming from the weaker yen and higher logistics expenses. The company aims to improve margins by optimizing its supply chain and shifting toward higher-value-added products.
- Expansion of the brand's loss: Strategic upfront investments in advertising, stores and personnel, as well as one-time costs associated with store closures, were the main factors. However, revenue exceeded plan, narrowing the loss from the initial plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Ordinary income
Prior-year period
10 Hundreds of millions of yen
Effect of higher sales
1.8 Hundreds of millions of yen
Decline in gross margin
-3.7 Hundreds of millions of yen
Sales Commissions
-1.2 Hundreds of millions of yen
Rent expense
-1.1 Hundreds of millions of yen
Other
-0.4 Hundreds of millions of yen
Current fiscal year
7.4 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The industry structure is weighted toward the second half, and the business characteristics of the growth businesses mean that profit is concentrated in the second half.New initiatives
- Reorganization of the former 4 segments into the growth businesses and profit businesses
- Strategic investment of profits from the profit businesses into the growth businesses
- Presentation of TATRAS's Spring/Summer 2027 collection at major events in Europe
- NIKE SHINJUKU opened on 10 April 2026
- Exhibition at TEX PREMIUM, an international textile trade show in London
- Investment of ¥15 billion to ¥20 billion under Medium-Term Management Plan 2029
- Promotion of data-driven management using AI
- Performance-linked compensation planned for introduction
Key KPIsA metric the company considers important as a management benchmark.
PBR
0.88 times as of end-June 2026
Comparison of first-quarter revenue over the past 5 yearsHighest in the past 5 years
TATRAS first-quarter domestic revenue
13.3 Hundreds of millions of yen
TATRAS first-quarter overseas revenue
€0.9 million
Segment results
Growth Businesses
Net Sales
20 Hundreds of millions of yen+31.6%
Ordinary income
-1.8 Hundreds of millions of yen
Brand
Net Sales
17.6 Hundreds of millions of yen+35.6%
Ordinary income
-3 Hundreds of millions of yen
Retail
Net Sales
2.4 Hundreds of millions of yen+8.5%
Ordinary income
1.1 Hundreds of millions of yen+26.3%
Profit businesses
Net Sales
191.2 Hundreds of millions of yen+2.8%
Ordinary income
12.2 Hundreds of millions of yen-20.0%
Materials
Net Sales
83.3 Hundreds of millions of yen+16.4%
Ordinary income
4.2 Hundreds of millions of yen-1.8%
Apparel
Net Sales
107.9 Hundreds of millions of yen-5.7%
Ordinary income
8 Hundreds of millions of yen-27.0%
Medium-term management plan targets
Medium-Term Management Plan 2029
Final yearFiscal year ending March 2029
Net Sales
960 Hundreds of millions of yen
Ordinary income
60 Hundreds of millions of yen
ROE
10 %
PBRMore than 1x
Long-Term Vision
Fiscal yearFiscal year ending March 2034
ROETo reach 12%
Financial targets
Fiscal year ending March 2027
ROEAt least 8.1%
Final year of Medium-Term Management Plan 2029
ROEAt least 10.0%
Long-Term Targets
ROETo reach 12%
PBRMore than 1x
Number of stores and locations
The number of stores and locations at period-end, as well as openings and closures during the period, were not disclosed. However, NIKE SHINJUKU opened on 10 April 2026, and the materials mention new TATRAS store openings and one-time costs associated with store closures.Number of employees
The number of employees, changes during the period and hiring plans were not disclosed.Annual Dividend
¥60 per share
Interim20
Full-year forecast40
Year on year+¥8
Payout ratio
40 % or higher
Total payout ratioApproximately 70%
Acquisition of treasury shares
Approximately ¥4 billion (planned)
| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | 203.6 Hundreds of millions of yen (YoY +3.3%) |
| Operating profit | 5 Hundreds of millions of yen (YoY -34.3%) |
| Ordinary income | 7.4 Hundreds of millions of yen (YoY -25.4%) |
| Net income | ¥5.5 100 million (quarterly net income attributable to owners of the parent) (YoY -13.5%) |
| Gross Profit Margin | 27.2 % |
| Operating profit margin | 2.5 % |
| Results for the three months of the current quarter | Revenue: ¥20.36 billion; operating profit: ¥500 million; ordinary profit: ¥740 million; quarterly net profit attributable to owners of the parent: ¥550 million |
| Full-year earnings forecast | Net Sales 880 Hundreds of millions of yen / Operating profit 44 Hundreds of millions of yen / Ordinary income 50 Hundreds of millions of yen / Profit attributable to owners of the parent 37 Hundreds of millions of yen / Earnings per share ¥149.1 |
| Progress against full-year forecast | Net Sales 23.1 % / Operating profit 11.4 % / Ordinary income 15 % / Profit attributable to owners of parent for the quarter 14.9 % / Quarterly earnings per share 15.2 % |
| Self-assessment against the plan | Progress ahead of plan for both revenue and profit |
| Segment results | Growth Businesses Net Sales 20 Hundreds of millions of yen (YoY +31.6%) / Ordinary income -1.8 Hundreds of millions of yen / Brand Net Sales 17.6 Hundreds of millions of yen (YoY +35.6%) / Ordinary income -3 Hundreds of millions of yen / Retail Net Sales 2.4 Hundreds of millions of yen (YoY +8.5%) / Ordinary income 1.1 Hundreds of millions of yen (YoY +26.3%) / Profit businesses Net Sales 191.2 Hundreds of millions of yen (YoY +2.8%) / Ordinary income 12.2 Hundreds of millions of yen (YoY -20.0%) / Materials Net Sales 83.3 Hundreds of millions of yen (YoY +16.4%) / Ordinary income 4.2 Hundreds of millions of yen (YoY -1.8%) / Apparel Net Sales 107.9 Hundreds of millions of yen (YoY -5.7%) / Ordinary income 8 Hundreds of millions of yen (YoY -27.0%) |
| Breakdown of Factors Affecting the Change | Ordinary income Prior-year period 10 Hundreds of millions of yen / Effect of higher sales 1.8 Hundreds of millions of yen / Decline in gross margin -3.7 Hundreds of millions of yen / Sales Commissions -1.2 Hundreds of millions of yen / Rent expense -1.1 Hundreds of millions of yen / Other -0.4 Hundreds of millions of yen / Current fiscal year 7.4 Hundreds of millions of yen |
| Key KPIs | PBR 0.88 times (as of end-June 2026) / Comparison of first-quarter revenue over the past 5 years Highest in the past 5 years / TATRAS first-quarter domestic revenue 13.3 Hundreds of millions of yen / TATRAS first-quarter overseas revenue €0.9 million |
| Number of stores and locations | The number of stores and locations at period-end, as well as openings and closures during the period, were not disclosed. However, NIKE SHINJUKU opened on 10 April 2026, and the materials mention new TATRAS store openings and one-time costs associated with store closures. |
| Number of employees | The number of employees, changes during the period and hiring plans were not disclosed. |
| Assumptions Underlying the Business Outlook | The industry structure is weighted toward the second half, and the business characteristics of the growth businesses mean that profit is concentrated in the second half. |
| Medium-term management plan targets | Medium-Term Management Plan 2029 Final year Fiscal year ending March 2029 / Net Sales 960 Hundreds of millions of yen / Ordinary income 60 Hundreds of millions of yen / ROE 10 % / PBR More than 1x / Long-Term Vision Fiscal year Fiscal year ending March 2034 / ROE To reach 12% |
| Financial targets | Fiscal year ending March 2027 ROE At least 8.1% / Final year of Medium-Term Management Plan 2029 ROE At least 10.0% / Long-Term Targets ROE To reach 12% / PBR More than 1x / Equity ratio Not disclosed |
| Annual Dividend | ¥60 per share |
| Payout ratio | 40 % or higher |
| Acquisition of treasury shares | Amount Approximately ¥4 billion (planned) / Number of Shares Not disclosed / Period Not disclosed |
| Key points of the Q&A | Business progress: Progress was ahead of plan for both revenue and profit. The brand is proceeding with investments in advertising and stores, with profit concentrated in the second half, when demand for the fall/winter season increases., Decline in profit margins: Gross profit margin declined due to higher costs stemming from the weaker yen and higher logistics expenses. The company aims to improve margins by optimizing its supply chain and shifting toward higher-value-added products., Expansion of the brand's loss: Strategic upfront investments in advertising, stores and personnel, as well as one-time costs associated with store closures, were the main factors. However, revenue exceeded plan, narrowing the loss from the initial plan. |
| New initiatives | Reorganization of the former 4 segments into the growth businesses and profit businesses, Strategic investment of profits from the profit businesses into the growth businesses, Presentation of TATRAS's Spring/Summer 2027 collection at major events in Europe, NIKE SHINJUKU opened on 10 April 2026, Exhibition at TEX PREMIUM, an international textile trade show in London, Investment of ¥15 billion to ¥20 billion under Medium-Term Management Plan 2029, Promotion of data-driven management using AI, Performance-linked compensation planned for introduction |
Items this document does not state (6)
Selling, general and administrative expensesUnit price and quantity metricsRisk amount incorporated into the outlookCapital 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.In addition to the decline in gross profit margin caused by higher costs stemming from the weaker yen and higher logistics expenses, increased rent associated with new TATRAS store openings and the relocation of the Tokyo head office, as well as sales commissions, weighed on profit.
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.