Operating profit turned positive in H1, but achieving full-year operating profit of ¥450 million remains weighted toward H2

FY2026-H1 covered the 6 months from 1 January to 30 June 2026, generating revenue of ¥13,725 million, operating profit of ¥68 million, ordinary profit of ¥202 million and interim net profit attributable to owners of the parent of ¥132 million. Operating income returned to the black, but because the fiscal year was changed from a year-end of 30 April to 31 December, the comparative period differs in both length and timing from the prior year. The company therefore did not disclose year-on-year percentage changes. The reported return to profitability should not be interpreted as a year-on-year improvement without qualification; performance should instead be assessed based on progress against the full-year forecast and the reproducibility of earnings.

H1 progress against the full-year forecast was 49.9% for revenue, calculated as ¥13,725 million ÷ ¥27,500 million, and 15.1% for operating profit, calculated as ¥68 million ÷ ¥450 million. If the elapsed-quarter ratio is simply assumed to be 75%, cumulative Q3 benchmarks would be revenue of ¥20,625 million and operating profit of ¥337.5 million. To achieve the full-year forecast, the company must generate an additional ¥13,775 million in revenue, ¥382 million in operating profit, ¥298 million in ordinary profit and ¥218 million in net profit during the period after H1. The back-loading of profit is therefore much greater than that of revenue.

When assessing profit progress, attention should also be paid to the gap between segment profit and consolidated operating profit. H1 segment profit was ¥413 million for mail-order, ¥1,111 million for retail stores, ¥766 million for direct sales and ¥331 million overseas, for a simple total of ¥2,621 million. Consolidated operating profit, by contrast, was ¥68 million, leaving a simple difference of ¥2,553 million. This may include the effects of corporate expenses, allocations and eliminations, but the breakdown was not disclosed in the earnings summary provided. In Q3, it will be important to check whether the burden of selling, general and administrative expenses and corporate expenses has declined.

At the next earnings release, it will be important to determine not only whether revenue has reached 75% progress, but also whether operating profit exceeds ¥337.5 million and whether the operating margin has improved, either in Q3 alone or cumulatively through Q3, toward full-year operating profit of ¥450 million. The earnings forecast had not been revised as of H1, and the operating margin was not officially disclosed. Accordingly, whether the forecast remains unchanged in Q3, how expenses are planned for H2, and whether the allocation of corporate expenses is disclosed will be key factors in the assessment.