Having already realized most of the full-year earnings forecast in Q1, earnings sustainability will be the focus in FY2027-H1

In FY2027 Q1, revenue was ¥4,477 million, operating profit was ¥144 million, ordinary profit was ¥149 million and net income attributable to owners of the parent was ¥145 million. In the same quarter a year earlier, the company recorded an operating loss of ¥57 million and an ordinary loss of ¥48 million, so both operating and ordinary profit turned from loss to profit. Revenue also increased 16.2% year on year, indicating a strong start to the fiscal year.

The full-year forecasts, however, remain unchanged at ¥17,500 million in revenue, ¥200 million in operating profit, ¥200 million in ordinary profit and ¥150 million in net income. On a simple calculation, Q1 alone reached 25.6% of the full-year revenue forecast, 72.0% of the operating profit forecast and 96.7% of the net income forecast. Given that Q1 represents 3 months, revenue is broadly in line with the time elapsed, while earnings are substantially ahead of the full-year plan.

Simply deducting Q1 results from the full-year forecasts implies that revenue of ¥13,023 million, operating profit of ¥56 million and net income of ¥5 million would be sufficient to meet the forecasts over the remaining 3 quarters. This calculation does not, however, take into account seasonality, investment in growth products or the timing of store operating costs. If Q1 earnings depended on temporary benefits from sales-floor renovations or changes in the product mix, margins could decline from Q2 onward.

In FY2027-H1, it will be necessary to review not only cumulative revenue but also cumulative operating profit, ordinary profit and net income, together with year-on-year changes. Key points will include how much profit was accumulated in Q2 alone relative to Q1 operating profit of ¥144 million, whether the full-year operating profit forecast of ¥200 million remains unchanged, and whether it has been revised downward due to higher personnel expenses or selling commissions.