After the full-year forecast downgrade, FY2027-H1 progress against the earnings plan is the focus

On 8 September 2026, the FY2027 earnings forecast was revised. Operating revenue was reduced by ¥1,852 million, from the initial ¥103,999 million to ¥102,147 million, and operating profit was reduced by ¥332 million, from ¥2,302 million to ¥1,970 million. The operating profit forecast was cut by approximately 14.4%, a larger reduction than the approximately 1.8% cut to the revenue forecast. Net profit attributable to owners of the parent also declined by ¥181 million, or approximately 13.4%, from ¥1,348 million to ¥1,167 million.

FY2027 Q1 operating revenue was ¥24,773 million and operating profit was ¥396 million. Progress against the revised full-year forecasts was approximately 24.3% for operating revenue and approximately 20.1% for operating profit. Revenue was close to the 25% share represented by one quarter of the fiscal year, while operating profit was somewhat behind. Based solely on the Q1 results, achieving the full-year forecasts would require operating revenue of ¥77,374 million and operating profit of ¥1,574 million over the remaining 3 quarters.

The forecast revision data disclose the new full-year figures, but not the amounts attributable to each factor behind the ¥1,852 million reduction in operating revenue and ¥332 million reduction in operating profit. Accordingly, in the next H1, it will be necessary to determine how the effects of stores closed at the end of the previous fiscal year or undergoing reconstruction, gross margin impacts from product price increases and market fluctuations, personnel expenses, depreciation and logistics costs correspond to the revised plan.

In the H1 results, the key items to track will be cumulative operating revenue and operating profit, progress against the revised full-year forecasts, operating profit required in the second half, and the difference between ordinary profit and net profit. In particular, if revenue remains in line with the plan but operating profit progress stays around 20%, improvement in the profit margin or an acceleration of the new-store effect will be required in the second half. It will therefore be important to see whether the company can provide a specific explanation for maintaining its full-year forecasts.