FY27 Q1: Revenue growth and a return to operating profitability, but acceleration in the second half is needed to meet the full-year profit plan

Revenue for the first quarter of the fiscal year ending March 2027 was ¥4,792.6 million, up 45.9% year on year. Operating profit was ¥30.1 million, ordinary profit was ¥32.2 million, and net profit attributable to owners of the parent was ¥1.0 million, all improving from the operating loss of ¥80.8 million, ordinary loss of ¥92.1 million, and net loss of ¥88.8 million recorded in the same period a year earlier. The operating margin was approximately 0.63%, confirming a return to profitability, although the margin remains low.

The full-year forecasts are revenue of ¥20,560 million, operating profit of ¥326 million, ordinary profit of ¥305 million, and net profit of ¥188 million. First-quarter revenue represented approximately 23.3% of the full-year forecast, close to the 25% implied by the number of quarters. By contrast, progress toward the operating profit forecast was approximately 9.2% and progress toward the net profit forecast approximately 0.5%, indicating that profit is building more slowly than revenue. Achieving the full-year operating profit target requires a further ¥295.9 million, or approximately ¥98.6 million of operating profit in each of the three quarters from Q2 onward on a simple average basis.

In the previous fiscal year, the fiscal year ended March 2026, revenue was ¥17,878.3 million and operating profit was ¥269.7 million, producing a full-year operating margin of approximately 1.5%. The FY27 full-year operating margin forecast is therefore approximately 1.6%, meaning that the expected improvement in profitability is limited relative to the substantial revenue growth. Whether the first-quarter return to profitability represents a structural improvement driven by brand expansion and social commerce growth, or temporary progress reflecting the seasonality of earnings weighted toward the second half, should be assessed through operating profit, gross margin, and SG&A trends in FY2027-H1.

At the next earnings announcement, the focus will be on whether revenue can maintain at least the first-quarter pace of ¥4,792.6 million and how much operating profit expands from ¥30.1 million. Even if the full-year forecast is maintained, the company has not disclosed the profit required over the remaining period or the composition of second-half earnings. Key points to monitor are whether cumulative operating profit through Q2 turns positive, whether progress toward the full-year forecast rises clearly from 9.2%, and whether the full-year forecast is revised.