三陽商会 sharply lowered its interim earnings forecast for the fiscal year ending February 2027, reducing its revenue and profit outlook substantially. Its share price fell for the third straight day in response.
On 28 August, 三陽商会 sharply revised down its interim earnings forecast for the fiscal year ending February 2027. The company cut its revenue forecast from ¥27.6 billion to ¥25.7 billion, its operating profit forecast from a ¥100 million profit to a ¥400 million loss, and its forecast for interim net profit attributable to owners of the parent from a ¥40 million profit to a ¥480 million loss.
The downward revision was attributed to weak sales in June, the final month of the spring/summer full-price sales season. Unfavorable weather caused revenue to fall to approximately 92% of the prior-year level, while operating profit also deteriorated sharply from the year-earlier period.
The company said it would pursue business structure reforms under its new president, Hirabayashi Yoshinori (平林義規). It plans to reassess its reliance on department stores, rebuild its brands, accelerate the rollout of new-format Sanyo Style Store locations, and expand into commercial facilities other than department stores. It also launched the new brand AUREME to create growth opportunities.
The full-year earnings forecast was left unchanged, but the shift to an interim loss has made the company’s recovery in the coming months a focus. Attention will be on the extent to which brand reforms, new-format store openings and the rollout of the new brand contribute to a recovery in performance in the second half.