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Presentation materials for financial results8242H2O RETAILING CORPORATIONRetail

Presentation Materials for the Fiscal Year Ending March 2026 Results

In FY2026, total sales were broadly flat, while operating profit declined due to higher costs and a decline in inbound sales at department stores following the sharp increase in the previous year. However, operating profit exceeded the company's forecast, and the Food business achieved operating profit of ¥10 billion for the first time.

Worth reading
77Important
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
-24
Hundreds of millions of yen
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales6,802 Hundreds of millions of yen-0.2%
Operating profit324 Hundreds of millions of yen-7.0%
Ordinary income345 Hundreds of millions of yen-3.9%
Net income300 Hundreds of millions of yen-14.0%
Gross Profit Margin
Year-on-year change (points)Food business: +0.3 percentage points
Selling, general and administrative expenses
Department stores
1,106 Hundreds of millions of yen
Food
1,210 Hundreds of millions of yen
Results for the three months of the current quarter
Gross sales
2,896 Hundreds of millions of yen+1.4%
Net Sales
1,644 Hundreds of millions of yen-1.5%
Operating profit
71 Hundreds of millions of yen+20.1%
Ordinary income
80 Hundreds of millions of yen+34.6%
Net income
10 Hundreds of millions of yen
Full-year earnings forecast
Gross sales
12,450 Hundreds of millions of yen
Net Sales
7,120 Hundreds of millions of yen
Operating profit
325 Hundreds of millions of yen
Ordinary income
330 Hundreds of millions of yen
Net income for the current fiscal year
230 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit came in above the company's forecast of ¥30 billion
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating income
Department stores-45
Food11
Commercial facilities-1
Other53
Consolidated adjustments-43
Variance from operating profit forecast
Department stores7
Food0
Commercial facilities2
Other13
Consolidated adjustments1
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Tax-free sales to Chinese customersA continued decline is expected
Middle East situationNo prolonged adverse impact from the second quarter onward has been factored in
FY2026 inbound sales plan
1,150 Hundreds of millions of yen
New initiatives
  • Completion of the conversion and remodeling of the Hankyu Main Store into a global department store
  • Rollout of new food supermarket store formats
  • Establishment of the FGO Business Development Office
  • Establishment of エイチ・ツー・オー まち元気パートナーズ株式会社
  • Launch of a retail media proof of concept
  • External sales of the customer data utilization business and rollout of retail media
  • Luxury tourism business for affluent customers, “Azumi Setoda,” with Hankyu Hanshin Holdings
Key KPIsA metric the company considers important as a management benchmark.
  • Same-store sales at food supermarkets1.7 %
  • Department store fourth-quarter domestic sales7 %
  • Department store fourth-quarter inbound sales-14 %
  • Overseas VIP members5.3 10,000 people
    Year on year against the same period last yearFY2024: 39,000 people
  • Sales to overseas VIP customers407 Hundreds of millions of yen
    Year on year against the same period last yearFY2024: ¥39 billion
  • Machiuma Takatsuki City members11 10,000 people
  • Machiuma paying member stores230 Location
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Food Business
Number of Customers
-0.3 %
Average Spend per Customer
2 %
Average Price per Item
4.4 %
Number of items purchased
-2.3 %
Segment results
Department stores
Gross sales
6,210 Hundreds of millions of yen-2.2%
Operating profit
238 Hundreds of millions of yen-15.8%
Food
Gross sales
4,325 Hundreds of millions of yen+0.9%
Operating profit
100 Hundreds of millions of yen+12.0%
Commercial facilities
Gross sales
301 Hundreds of millions of yen-5.3%
Operating profit
38 Hundreds of millions of yen-2.2%
Other
Gross sales
789 Hundreds of millions of yen+22.5%
Operating profit
75 Hundreds of millions of yen+242.8%
Medium-term management plan targets
Operating profit
350～400
Target fiscal year2030
ROE
8 % or higher
Target fiscal year2030
FY2024–FY2026 operating profit target
320 Hundreds of millions of yen
Financial targets
ROE
Target6.6% or more
FY2025 actual9.8%
FY2026 forecast7.4%
ROIC
Target5.9 %
FY2025 actual5.5 %
FY2026 forecast5.6 %
PBR
TargetAt least 1.2x
Current statusApproximately 0.9x
Number of stores and locations
New store format
FY25
マルシェ3
Daily Mart10
FY2026 plan
マルシェ11
Daily Mart22
Number of employees
VIP attendants50 in total
Human Capital Investment¥3 billion cumulative for FY2024–FY2025
Annual Dividend
FY25
¥46
FY2026
¥48
Payout ratio
As a general rule, dividends are based on a DOE of 1.8% or more
Acquisition of treasury shares
Number of shares
600 10,000 shares maximum
Amount
¥107 100 million maximum
Period13 May 2026 to 31 March 2027
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales6,802 Hundreds of millions of yen (YoY -0.2%)
Operating profit324 Hundreds of millions of yen (YoY -7.0%)
Ordinary income345 Hundreds of millions of yen (YoY -3.9%)
Net income300 Hundreds of millions of yen (YoY -14.0%)
Gross Profit MarginFood Business Not disclosed / Year-on-year change (points) Food business: +0.3 percentage points
Selling, general and administrative expensesDepartment stores 1,106 Hundreds of millions of yen / Food 1,210 Hundreds of millions of yen
Results for the three months of the current quarterGross sales 2,896 Hundreds of millions of yen (YoY +1.4%) / Net Sales 1,644 Hundreds of millions of yen (YoY -1.5%) / Operating profit 71 Hundreds of millions of yen (YoY +20.1%) / Ordinary income 80 Hundreds of millions of yen (YoY +34.6%) / Net income 10 Hundreds of millions of yen
Full-year earnings forecastGross sales 12,450 Hundreds of millions of yen / Net Sales 7,120 Hundreds of millions of yen / Operating profit 325 Hundreds of millions of yen / Ordinary income 330 Hundreds of millions of yen / Net income for the current fiscal year 230 Hundreds of millions of yen
Self-assessment against the planOperating profit came in above the company's forecast of ¥30 billion
Segment resultsDepartment stores Gross sales 6,210 Hundreds of millions of yen (YoY -2.2%) / Operating profit 238 Hundreds of millions of yen (YoY -15.8%) / Food Gross sales 4,325 Hundreds of millions of yen (YoY +0.9%) / Operating profit 100 Hundreds of millions of yen (YoY +12.0%) / Commercial facilities Gross sales 301 Hundreds of millions of yen (YoY -5.3%) / Operating profit 38 Hundreds of millions of yen (YoY -2.2%) / Other Gross sales 789 Hundreds of millions of yen (YoY +22.5%) / Operating profit 75 Hundreds of millions of yen (YoY +242.8%)
Breakdown of Factors Affecting the ChangeYear-on-year change in operating income Department stores -45 / Food 11 / Commercial facilities -1 / Other 53 / Consolidated adjustments -43 / Variance from operating profit forecast Department stores 7 / Food 0 / Commercial facilities 2 / Other 13 / Consolidated adjustments 1
Key KPIsIndicator name Same-store sales at food supermarkets / Value 1.7 % / Year on year against the same period last year Not disclosed, Indicator name Department store fourth-quarter domestic sales / Value 7 % / Year on year against the same period last year Not disclosed, Indicator name Department store fourth-quarter inbound sales / Value -14 % / Year on year against the same period last year Not disclosed, Indicator name Overseas VIP members / Value 5.3 10,000 people / Year on year against the same period last year FY2024: 39,000 people, Indicator name Sales to overseas VIP customers / Value 407 Hundreds of millions of yen / Year on year against the same period last year FY2024: ¥39 billion, Indicator name Machiuma Takatsuki City members / Value 11 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Machiuma paying member stores / Value 230 Location / Year on year against the same period last year Not disclosed
Unit price and quantity metricsFood Business Number of Customers -0.3 % / Average Spend per Customer 2 % / Average Price per Item 4.4 % / Number of items purchased -2.3 %
Number of stores and locationsNew store format FY25 マルシェ 3 / Daily Mart 10 / FY2026 plan マルシェ 11 / Daily Mart 22 / Other Not disclosed
Number of employeesVIP attendants 50 in total / Human Capital Investment ¥3 billion cumulative for FY2024–FY2025
Assumptions Underlying the Business OutlookTax-free sales to Chinese customers A continued decline is expected / Middle East situation No prolonged adverse impact from the second quarter onward has been factored in / FY2026 inbound sales plan 1,150 Hundreds of millions of yen
Medium-term management plan targetsOperating profit 350～400 / ROE 8 % or higher / FY2024–FY2026 operating profit target 320 Hundreds of millions of yen
Financial targetsROE Target 6.6% or more / FY2025 actual 9.8% / FY2026 forecast 7.4% / ROIC Target 5.9 % / FY2025 actual 5.5 % / FY2026 forecast 5.6 % / PBR Target At least 1.2x / Current status Approximately 0.9x
Annual DividendFY25 ¥46 / FY2026 ¥48
Payout ratioAs a general rule, dividends are based on a DOE of 1.8% or more
Acquisition of treasury sharesNumber of shares 600 10,000 shares (maximum) / Amount ¥107 100 million (maximum) / Period 13 May 2026 to 31 March 2027
New initiativesCompletion of the conversion and remodeling of the Hankyu Main Store into a global department store, Rollout of new food supermarket store formats, Establishment of the FGO Business Development Office, Establishment of エイチ・ツー・オー まち元気パートナーズ株式会社, Launch of a retail media proof of concept, External sales of the customer data utilization business and rollout of retail media, Luxury tourism business for affluent customers, “Azumi Setoda,” with Hankyu Hanshin Holdings
Items this document does not state (7)
Operating profit marginProgress against full-year forecastRisk amount incorporated into the outlookCapital 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.

Operating profit was pressured by higher costs, including personnel expenses, and a decline in inbound sales in the Department Store business following the sharp increase in the previous year. Net income also declined due to the reversal of the previous year's special gain and an increase in impairment losses.

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Presentation Materials for the Fiscal Year Ending March 2026 Results | H2O RETAILING CORPORATION (8242) timely disclosure | Komori