Worth reading
78Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
14.7
¥100 million (year-on-year increase in net sales)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary Materials to the Earnings ReportFiscal year ending March 2027, second quarter (first half)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥410.1 100 million+3.7%
Operating profit¥7.7 100 million-44.2%
Ordinary income¥13 100 million-24.1%
Net income¥10.8 100 million-35.2%
Gross Profit Margin
Rate26.1% (second quarter alone)
Year-on-year change (points)-1.8 percentage points year on year
Operating profit margin
Rate1.9%
Results for the three months of the current quarterRevenue of ¥20.6 billion, gross profit margin of 26.1% (second quarter alone)
Full-year earnings forecast
Net Sales
¥880 100 million
Operating profit
¥44 100 million
Ordinary income
¥50 100 million
Net income
¥37 100 million
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 Sales46.6%
Operating profit17.5%
Ordinary income26.0%
Net income29.3%
Earnings per share29.9%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Both revenue and profit are progressing ahead of plan. Progress toward achieving the full-year plan is on track.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The company explained that both revenue and profit are progressing smoothly, ahead of plan against the full-year targets.
- The company explained that the wider loss in the Brand business was due to upfront investment in advertising, store expansion, and human resources.
- The company explained that the Apparel business's declines in revenue and profit were due to lower orders and delays in passing higher costs through to prices.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-Year Change in Ordinary Profit¥410 million decline
Effect of higher sales+¥410 million
Decline in gross margin¥750 million decline
Sales Commissions+¥290 million
Rent expense¥210 million decline
Other-¥150 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
An industry structure weighted toward the second half, stronger demand for heavy autumn and winter apparel, and passing higher costs through to appropriate pricesNew initiatives
- Reorganization of the former 4 segments into the growth businesses and profit businesses
- Establishment of a wholly owned TATRAS subsidiary in Taipei, Taiwan
- Operation of a TATRAS pop-up store in Seoul, South Korea
- Integration of textile e-commerce inventory with Sunwell and Takisada
- Opening of 6 new NIKE stores
Key KPIsA metric the company considers important as a management benchmark.
PBR0.83x (at the end of September 2026)
TATRAS domestic sales¥2.68 billion (cumulative second quarter)
TATRAS overseas sales€1.2 million (cumulative second quarter)
NIKE store count18 stores
Number of meetings with institutional investors16 meetings (up 6 year on year)
Equity ratio56.7%
Segment results
Growth Businesses
Net Sales¥3.92 billion (up 28.5% year on year)
Ordinary income¥260 million loss (improvement of ¥220 million year on year)
Profit businesses
Net Sales¥38.53 billion (up 1.9% year on year)
Ordinary income¥2.23 billion (down 22.9% year on year)
Brand
Net Sales¥3.36 billion (up 29.3% year on year)
Ordinary income-¥770 million
Retail
Net Sales¥560 million (up 23.9% year on year)
Ordinary income¥210 million (up 141.4% year on year)
Materials
Net Sales¥16.8 billion (up 12.9% year on year)
Ordinary income¥680 million (up 0.1% year on year)
Apparel
Net Sales¥21.73 billion (down 5.2% year on year)
Ordinary income¥1.55 billion (down 30.0% year on year)
Medium-term management plan targets
Medium-Term Management Plan 2029Revenue of ¥96 billion, ordinary profit of ¥6 billion, ROE of 10%, and PBR above 1x
Mid-term plan period¥5 billion in dividends, ¥4 billion in share buybacks, and ¥15 billion–¥20 billion in growth investment
Financial targets
Medium-Term Management Plan 2029ROE of at least 10.0% and PBR above 1x
Long-Term TargetsROE of 12%
Cross-ShareholdingsPolicy-held shares at no more than 10% of consolidated net assets
Number of stores and locations
There were 18 NIKE stores as of the end of September 2026. 6 new stores were opened during the period.Annual Dividend
Full-year forecast¥60
Interim¥20
Full-year forecast¥40
Payout ratio
At least 40%. Total payout ratio targeted at approximately 70%Acquisition of treasury shares
Current-period plan¥1.5 billion (maximum of 800,000 shares)
Acquisition period1 July 2026–31 March 2027
Acquisitions during the period403,000 shares, ¥660 million
| Item | Details |
|---|---|
| Document type | Supplementary Materials to the Earnings Report |
| Fiscal Period Covered | Fiscal year ending March 2027, second quarter (first half) |
| Net Sales | ¥410.1 100 million (YoY +3.7%) |
| Operating profit | ¥7.7 100 million (YoY -44.2%) |
| Ordinary income | ¥13 100 million (YoY -24.1%) |
| Net income | ¥10.8 100 million (YoY -35.2%) |
| Gross Profit Margin | Rate 26.1% (second quarter alone) / Year-on-year change (points) -1.8 percentage points year on year |
| Operating profit margin | Rate 1.9% / Year-on-year change (points) Not disclosed |
| Results for the three months of the current quarter | Revenue of ¥20.6 billion, gross profit margin of 26.1% (second quarter alone) |
| Full-year earnings forecast | Net Sales ¥880 100 million / Operating profit ¥44 100 million / Ordinary income ¥50 100 million / Net income ¥37 100 million / Earnings per share ¥149.1 |
| Progress against full-year forecast | Net Sales 46.6% / Operating profit 17.5% / Ordinary income 26.0% / Net income 29.3% / Earnings per share 29.9% |
| Self-assessment against the plan | Both revenue and profit are progressing ahead of plan. Progress toward achieving the full-year plan is on track. |
| Segment results | Growth Businesses Net Sales ¥3.92 billion (up 28.5% year on year) / Ordinary income ¥260 million loss (improvement of ¥220 million year on year) / Profit businesses Net Sales ¥38.53 billion (up 1.9% year on year) / Ordinary income ¥2.23 billion (down 22.9% year on year) / Brand Net Sales ¥3.36 billion (up 29.3% year on year) / Ordinary income -¥770 million / Retail Net Sales ¥560 million (up 23.9% year on year) / Ordinary income ¥210 million (up 141.4% year on year) / Materials Net Sales ¥16.8 billion (up 12.9% year on year) / Ordinary income ¥680 million (up 0.1% year on year) / Apparel Net Sales ¥21.73 billion (down 5.2% year on year) / Ordinary income ¥1.55 billion (down 30.0% year on year) |
| Breakdown of Factors Affecting the Change | Year-on-Year Change in Ordinary Profit ¥410 million decline / Effect of higher sales +¥410 million / Decline in gross margin ¥750 million decline / Sales Commissions +¥290 million / Rent expense ¥210 million decline / Other -¥150 million |
| Key KPIs | PBR 0.83x (at the end of September 2026) / TATRAS domestic sales ¥2.68 billion (cumulative second quarter) / TATRAS overseas sales €1.2 million (cumulative second quarter) / NIKE store count 18 stores / Number of meetings with institutional investors 16 meetings (up 6 year on year) / Equity ratio 56.7% |
| Number of stores and locations | There were 18 NIKE stores as of the end of September 2026. 6 new stores were opened during the period. |
| Assumptions Underlying the Business Outlook | An industry structure weighted toward the second half, stronger demand for heavy autumn and winter apparel, and passing higher costs through to appropriate prices |
| Medium-term management plan targets | Medium-Term Management Plan 2029 Revenue of ¥96 billion, ordinary profit of ¥6 billion, ROE of 10%, and PBR above 1x / Mid-term plan period ¥5 billion in dividends, ¥4 billion in share buybacks, and ¥15 billion–¥20 billion in growth investment |
| Financial targets | Medium-Term Management Plan 2029 ROE of at least 10.0% and PBR above 1x / Long-Term Targets ROE of 12% / Cross-Shareholdings Policy-held shares at no more than 10% of consolidated net assets |
| Annual Dividend | Full-year forecast ¥60 / Interim ¥20 / Full-year forecast ¥40 |
| Payout ratio | At least 40%. Total payout ratio targeted at approximately 70% |
| Acquisition of treasury shares | Current-period plan ¥1.5 billion (maximum of 800,000 shares) / Acquisition period 1 July 2026–31 March 2027 / Acquisitions during the period 403,000 shares, ¥660 million |
| Key points of the Q&A | The company explained that both revenue and profit are progressing smoothly, ahead of plan against the full-year targets., The company explained that the wider loss in the Brand business was due to upfront investment in advertising, store expansion, and human resources., The company explained that the Apparel business's declines in revenue and profit were due to lower orders and delays in passing higher costs through to prices. |
| New initiatives | Reorganization of the former 4 segments into the growth businesses and profit businesses, Establishment of a wholly owned TATRAS subsidiary in Taipei, Taiwan, Operation of a TATRAS pop-up store in Seoul, South Korea, Integration of textile e-commerce inventory with Sunwell and Takisada, Opening of 6 new NIKE stores |
Items this document does not state (7)
Selling, general and administrative expensesUnit price and quantity metricsNumber of employeesRisk 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.Profit declined due to higher costs resulting from the weaker yen and surging logistics costs, a lower gross profit margin, higher rent from new TATRAS store openings and the relocation of the Tokyo head office, and upfront investment in growth businesses. Revenue increased, driven by the expansion of global materials sales and other factors.
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.