Confirm the effectiveness of the FY2027 plan for higher revenue and profit from Q1

For the fiscal year ended June 2026, revenue increased 6.3% year on year to ¥27,154 million, while operating profit declined 11.4% to ¥1,493 million. For the fiscal year ending June 2027, the company expects revenue of ¥28,950 million, operating profit of ¥1,700 million and profit attributable to owners of the parent of ¥950 million. The plan calls for revenue to increase by ¥1,796 million and operating profit by ¥207 million, making the extent of profit recovery more important than revenue growth.

In the next FY2027-Q1, if the full-year forecast is simply divided into 4 equal parts, operating profit of ¥425 million would be one benchmark for progress. However, the company is affected by weather, year-end demand, customer traffic and the timing of store openings. Progress should therefore be assessed alongside the year-on-year operating margin, profit progress in Japan and overseas, and the progress of hiring and assignment, rather than against a simple 25% benchmark. In particular, operating profit for the fiscal year ended June 2026 fell ¥523 million short of plan, making cost control from the early quarters essential to achieving the plan.

The company plans to expand from 767 stores at the end of the fiscal year ended June 2026 to 810 stores at the end of the fiscal year ending June 2027, requiring a net increase of 43 stores during the year. At the next results announcement, the focus will be on year-end store count, new openings, closures and the domestic/overseas breakdown, as well as whether sales contributions from new stores exceed the burden of upfront investment. Even if the full-year forecasts are maintained, progress toward operating profit falls materially below ¥425 million or overseas profit turns negative would indicate a higher hurdle for achieving the forecasts.