Can domestic BOOKOFF's sales growth translate into profit growth in the next quarter?

For full-year FY2026, the domestic BOOKOFF business benefited from higher same-store sales of trading cards and hobby products, precious metals, watches and branded bags, apparel, books and other categories. Revenue was ¥112,665 million, up 8.0% from the prior fiscal year, and segment profit was ¥6,369 million, up 19.1%. The domestic business is positioned as a source of stable earnings and funding for the group's growth investments, and full-year results confirm higher revenue and profit in numerical terms.

However, in the first half of FY2026, revenue rose 6.5% year on year to ¥52,952 million, while segment profit fell 1.8% to ¥2,339 million. The increase in personnel expenses was absorbed by the gross profit generated by higher sales, but increased system-related costs, including system equipment upgrades and price revisions for tools, weighed on profit. The full-year recovery in profit is encouraging, but the next results need to distinguish between temporary costs and structural costs associated with expanding the store and digital platforms.

Same-store sales in September 2026 were reportedly above the prior year for 68 consecutive months. However, September follows the June-August period covered by FY2027-Q1, so it is not a metric that directly substitutes for the next quarterly results. After reviewing Q1 domestic revenue, same-store sales, customer traffic and segment profit, it will be important to determine whether the strength seen from September onward represents a continuation of the Q1 trend or an acceleration in early autumn.

In the next results, the key issue will be whether growth in gross profit exceeded increases in personnel and system-related costs, rather than revenue growth alone. The latest financial summary does not sufficiently break out system-related costs, same-store sales by merchandise category, or the combination of customer traffic and average spend. Disclosure of these items would make it easier to assess the likelihood of achieving the FY2027 profit forecast of ¥4,700 million.