Targeting higher revenue through accelerated store openings while assessing slower profit-margin growth in FY2027

In FY2026, revenue was ¥220,638 million, operating profit was ¥10,985 million, ordinary profit was ¥11,157 million and net income attributable to owners of the parent was ¥7,875 million. Year on year, these figures increased by 9.9%, 13.7%, 12.7% and 11.4%, respectively. Concentrated store openings and the development of dominant trading areas were the main drivers of higher revenue, and the number of stores at the end of the fiscal year expanded to 534, comprising 506 R stores and 28 large-format stores.

The company's FY2027 forecasts are revenue of ¥244,000 million, operating profit of ¥12,000 million, ordinary profit of ¥12,100 million and net income of ¥8,200 million. Revenue is projected to rise 10.6% year on year, operating profit 9.2%, ordinary profit 8.4% and net income 4.1%, indicating somewhat slower profit growth relative to revenue growth. The operating margin calculates to approximately 4.9% under the FY2027 forecast, compared with the FY2026 actual margin of 5.0%, making the ability to absorb initial store-opening costs, labor costs and depreciation a key issue.

For FY2027, the company plans 75 new store openings and a net increase of 70 stores, targeting 604 stores. If the annual plan of 75 openings were allocated evenly across four quarters, 18–19 new stores in Q1 would be one progress benchmark, although store-opening timing is seasonal and this figure cannot be treated as the company's quarterly plan. At the next results announcement, it will be necessary to confirm the actual numbers of new openings, closures and remodels, whether same-store sales reached the planned 3.5% increase, and whether the revenue generated by new stores flowed through to gross profit and operating profit.