Will the strong start in FY2027 Q1 continue through the interim period?

FY2026 full-year results were revenue of ¥255,695 million, operating profit of ¥20,968 million, ordinary profit of ¥21,287 million and net profit of ¥14,696 million, up 8.2%, 24.5%, 25.3% and 31.0%, respectively, from the previous fiscal year. Operating and net profit growth outpaced revenue growth, as growth in same-store sales and lower expense ratios drove profit growth during the year.

FY2027 Q1 revenue was ¥69,601 million, operating profit was ¥6,163 million, ordinary profit was ¥6,288 million and quarterly net profit was ¥4,199 million. Compared with revenue of ¥60,498 million and operating profit of ¥4,144 million in the year-earlier quarter, revenue increased approximately 15.0% and operating profit approximately 48.7%. The operating margin also rose from approximately 6.9% to approximately 8.9% on a simple calculation, exceeding the full-year FY2026 margin of 8.2% and representing a strong start.

The full-year forecast presented at FY2027 Q1 calls for revenue of ¥276,100 million, operating profit of ¥22,100 million, net profit of ¥15,400 million and annual dividends of ¥80. Using a simple half-year progress benchmark, the reference amounts are revenue of ¥138,050 million and operating profit of ¥11,050 million. This is a mechanical 50% benchmark that does not adjust for seasonality, however, so existing-store sales, the impact of new store openings, the cost ratio and the selling and administrative expense ratio must also be considered when assessing the achievability of the company’s forecast.

At the next earnings release, we will assess not only whether the Q1 increase in revenue and profit continued through the interim period, but also the company’s assessment of the full-year forecast. In particular, it will be important to determine whether operating profit progress continues to outpace revenue progress and whether the full-year forecast presented at Q1 is maintained or revised upward or downward. Profit growth was substantial from FY2026 Q1 to FY2027 Q1, so the prior-year comparison base and any temporary expense differences should also be examined.