Full-year operating profit is close to target, but revenue will require a strong fourth quarter

Revenue for the first 3 quarters of the fiscal year ending August 2026 was ¥79.955 billion, operating profit was ¥5.274 billion and ordinary profit was ¥5.130 billion. The full-year forecasts are revenue of ¥106.0 billion, operating profit of ¥5.5 billion and ordinary profit of ¥5.260 billion, with progress reaching 75.4% for revenue, 95.9% for operating profit and 97.5% for ordinary profit. The company had not revised its full-year forecasts as of the third quarter.

On a simple calculation, the full-year revenue forecast would be reached by generating ¥26.045 billion in the fourth quarter. This is below the third quarter's standalone revenue of ¥27.984 billion, so the revenue target does not appear difficult to achieve. Operating profit, meanwhile, would reach ¥5.5 billion if the company secures ¥226 million in the fourth quarter. The focus on profitability will therefore be whether fourth-quarter investment costs and the sales mix cause material fluctuations.

Net income attributable to owners of the parent was ¥3.314 billion for the first 3 quarters, or 110.5% of the full-year forecast of ¥3.0 billion. Ordinary profit and net income, as well as operating profit, remained positive, but some line items have exceeded their full-year forecasts on a cumulative basis while others remain below target. In the fourth quarter, it will be necessary to determine whether the upside in net income reflects temporary extraordinary gains or losses, and whether operating profit growth is consistent with revenue growth.

The third-quarter results presentation stated that the company plans to make active investments ahead of the next fiscal year in the fourth quarter. Accordingly, the focus is not only on whether full-year operating profit reaches ¥5.5 billion, but also on where revenue and operating profit land after investments in advertising, hiring and overseas store openings. At the results announcement, it will also be important to see whether the company newly discloses its revenue and operating profit forecasts for the fiscal year ending August 2027 and the assumptions underlying them.