Profit growth has outpaced revenue growth through the third quarter, increasing confidence in achieving the FY2026 full-year forecast.

In the first quarter of FY2026, revenue was ¥4,130 million and operating profit was ¥556 million, up 9.7% and 73.8%, respectively, year on year. By the interim stage, revenue had increased to ¥8,324 million and operating profit to ¥1,317 million, representing year-on-year increases of 8.8% and 40.9%, respectively. For the 9-month period, revenue was ¥12,703 million and operating profit was ¥1,890 million, with operating profit growth expanding to 41.6%, compared with revenue growth of 12.3%.

The full-year forecasts are revenue of ¥15,837 million, operating profit of ¥2,087 million, ordinary profit of ¥2,055 million and net profit of ¥1,390 million. Progress through the third quarter was 80.2% for revenue, 90.6% for operating profit, 89.6% for ordinary profit and 89.4% for net profit. On a simple calculation, the company would reach its forecasts by recording ¥3,134 million of revenue, ¥197 million of operating profit, ¥213 million of ordinary profit and ¥148 million of net profit in the fourth quarter. However, quarterly seasonality and the fourth-quarter cost plan have not been disclosed in sufficient detail. Rather than concluding that the forecasts will be achieved based solely on progress rates, it is necessary to monitor fourth-quarter gross profit and SG&A expenses.

Margins have also improved. Operating margin was approximately 13.5% in the first quarter, 15.8% at the interim stage and 14.9% through the third quarter, up from approximately 8.5%, 12.2% and 11.8%, respectively, in the corresponding prior-year periods. In addition to higher revenue, growth in sales from store events, new stores and auctions may have contributed to profit, although the company has not disclosed the revenue increase or gross margin by initiative. At the next results announcement, the focus will be on whether operating margin can remain around the 14.9% recorded through the third quarter and whether maintaining the full-year forecast reflects a conservative plan.