Operating profit is ahead in Q1; assess progress toward the full-year plan in FY2027 H1

The first quarter from March to May 2026 generated revenue of ¥1,071 million, operating profit of ¥92 million, ordinary profit of ¥93 million and net profit of ¥64 million. Year on year, revenue increased 0.3%, operating profit 0.9%, ordinary profit 1.5% and quarterly net profit 25.1%. Although bottom-line profit grew relatively strongly, growth in revenue and operating profit remained modest.

The full-year forecasts are revenue of ¥4,500 million, operating profit of ¥330 million, ordinary profit of ¥335 million and net profit of ¥220 million. Calculated against these forecasts, Q1 progress was approximately 23.8% for revenue and approximately 28.1% for operating profit, with operating profit ahead of revenue by approximately 4.3 percentage points. At the end of Q1, the company needed to generate approximately ¥3,428 million more in revenue and ¥238 million more in operating profit to meet the full-year forecasts.

The company has not provided standalone H1 forecasts for revenue or operating profit, or progress benchmarks adjusted for quarterly seasonality. Accordingly, revenue of ¥2,250 million and operating profit of ¥165 million are not company targets, but reference figures obtained by simply dividing the full-year forecasts by two. In the H1 results, it will be necessary to compare performance with these reference figures and assess whether year-on-year revenue growth improves from Q1 to Q2.

Q1 revenue was attributed to new store openings, higher sales at existing stores, an expanded product lineup and stronger omnichannel integration between stores and e-commerce, while the improvement in profit was also attributed in part to a decrease in inventory valuation losses. Accordingly, in H1 it will be necessary to assess simultaneously whether revenue moves at least close to an even pace, whether operating profit can maintain its lead pace from Q1, and whether the full-year forecasts of ¥4,500 million in revenue and ¥330 million in operating profit are revised.