At its earnings briefing for the first quarter of the fiscal year covering March to May 2026, コーナン商事 reported substantial growth, with revenue up 112% and net income up 152% year on year. Professional-format sales reached approximately ¥150 billion, and the company announced plans to expand the number of new stores to 22.
In the consolidated results for the March to May 2026 period, revenue rose 112% year on year, operating profit increased 142%, and net income grew 152%, all showing substantial growth. President and CEO Hikita Naotaro (疋田直太郎) described performance as having been “very strong.” Same-store sales also rose 107.5%, demonstrating resilience.
The company identified expansion of its professional-format business as a key growth driver. The store-opening plan calls for 7 home centers this fiscal year, compared with 22 professional-format stores. Professional-format sales are expected to reach approximately ¥150 billion, putting the company well ahead of the industry’s second-largest player.
The private-label strategy will use procurement through direct negotiations with overseas manufacturers, including those in China, to maintain and improve gross profit margins. The company is also advancing capital and business alliances with Alenza HD and Valor HD, seeking to enhance value through private-label supply and the transfer of know-how.
The targets in the medium-term management plan are revenue of ¥560 billion, operating profit of ¥29 billion, EBITDA of ¥43 billion, and net income of ¥16.5 billion. Meanwhile, ROE of 7.23% and a PBR of 0.72x indicate continuing issues with capital efficiency. The company plans to maintain a total payout ratio of at least 40%, although it is expected to fall short of that target this fiscal year. Overseas operations continue to involve trial and error in Vietnam and Cambodia.
Facts: [ { "k": "Revenue", "v": "Confirmed a 112% year-on-year increase" }, { "k": "Net income", "v": "Net income up 152%" }, { "k": "Professional-format sales", "v": "Expanded to approximately ¥150 billion" }, { "k": "Number of new stores", "v": "Expanded to 22 professional-format stores" }, { "k": "ROE", "v": "Approximately 7.23%" }, { "k": "PBR", "v": "0.72x" } ],
Sources: [ { "outlet": "finance.biggo.jp", "stance": "match", "note_ja": "" } ]