Q1 was ahead on earnings, but the focus is whether the company can reach half of its full-year plan in H1

In Q1 of the fiscal year ending February 2027, revenue was ¥58,771 million, operating income was ¥2,544 million, ordinary income was ¥2,793 million and net income attributable to owners of the parent was ¥1,814 million. Year on year, revenue increased 12.5%, operating income 140.8%, ordinary income 125.0% and net income 144.2%, with earnings growing faster than revenue. Progress against the full-year forecasts was 24.3% for revenue, 29.9% for operating income, 31.7% for ordinary income and 37.0% for net income.

If FY2027-H1 is viewed as a simple 50% milestone for the full-year plan, the benchmarks are ¥121,000 million for revenue, ¥4,250 million for operating income and ¥2,450 million for net income. Based on the difference from Q1 results, Q2 alone would need to generate revenue of ¥62,229 million, operating income of ¥1,706 million and net income of ¥636 million. These are analytical thresholds that do not account for seasonality and are not the company's H1 forecasts.

Q1 revenue progress of 24.3% was slightly below the 25% represented by one quarter of the fiscal year, while operating income progress of 29.9% and net income progress of 37.0% were ahead. The operating margin also rose to 4.3%, which the company attributed to growth in same-store sales and appropriate control of selling, general and administrative expenses. However, the supplementary materials do not state whether the company considers results to be above or below plan.

At the next earnings release, it will be necessary to assess not only the year-on-year change in cumulative H1 results, but also the distance from the 50% benchmarks above, whether the operating margin can be maintained at around 4.3%, and whether the full-year forecasts are maintained or revised. The annual dividend forecast remains ¥22, so it will also be necessary to confirm whether the dividend policy changes even if earnings exceed expectations.