FY2027-Q1 is broadly in line with the full-year plan, while achievement of the H1 plan will be determined in FY2027-H1

In FY2027-Q1, revenue was ¥4,991 million, operating income was ¥352 million, ordinary income was ¥353 million and quarterly net income was ¥220 million. Year on year, revenue increased 14.7%, operating income 33.5%, ordinary income 32.1% and net income 23.5%, securing earnings growth above the rate of revenue growth. The company’s forecasts are revenue of ¥20,800 million, operating income of ¥1,500 million, ordinary income of ¥1,510 million and net income of ¥921 million, with no change from the latest forecasts according to the earnings release.

Simple first-quarter progress against the full-year forecasts was approximately 24.0% for revenue, 23.5% for operating income, 23.4% for ordinary income and 23.9% for net income. Assuming mechanically that 25% of the full-year plan is achieved each quarter, revenue and operating income are broadly on track. However, quarterly earnings allocation in furniture and interior sales varies with store-opening schedules, seasonality and the timing of promotional spending. Rather than treating 25% as a mechanical benchmark, it is necessary to assess progress against the H1 plan together with year-on-year growth rates.

The earnings presentation disclosed first-quarter progress against the H1 plan of 54.3% for revenue, 64.2% for operating income, 63.7% for ordinary income and 65.0% for net income. The fact that earnings progress is ahead of revenue progress is positive, but the H1 plan amounts themselves and the levels of revenue and operating income required in the standalone second quarter were not clearly presented. Accordingly, in FY2027-H1 it will be important to confirm whether H1 results exceeded the planned amounts and whether the lead in earnings progress was maintained in the second quarter.

In the previous fiscal year, FY2026, revenue was ¥18,129 million and operating income was ¥1,353 million, achieving 108.3% of the full-year operating income plan. The FY2027 plan targets revenue growth of 14.7% and operating income growth of 10.8% from the previous year’s results. At the next results announcement, it will be important to assess from both H1 results and the full-year forecasts whether the earnings growth rate has slowed materially from the first quarter’s 33.5%, and whether the company can absorb higher store-opening and marketing expenses while maintaining its full-year plan.