Okuwa has revised down its earnings forecasts for the interim and full-year periods of the fiscal year ending February 2027. Operating results are expected to fall into the red for the interim period, with the net loss also expected to widen.
Okuwa announced on 25 September that it had revised down its earnings forecasts for the interim and full-year periods of the fiscal year ending February 2027. Although interim operating revenue is expected to increase from the previous forecast, operating results are expected to fall into the red, while ordinary income and the interim net loss attributable to owners of the parent are also expected to decline.
For the interim period, operating revenue is expected to be ¥123.227 billion, with an operating loss of ¥57 million, ordinary income of ¥13 million and an interim net loss attributable to owners of the parent of ¥187 million. For the full year, operating revenue has been revised down to ¥250.8 billion, operating income to ¥1.3 billion, ordinary income to ¥1.3 billion and net income to ¥50 million.
The company has been conducting promotional activities against a backdrop of increasingly polarised consumption and a growing preference for frugality, but said that the measures have had only a limited effect on customer numbers and the number of items purchased. It also explained that procurement prices have become unstable due to surging raw material prices and foreign exchange movements, making it difficult to secure profits at each level.
The full-year forecast has also been revised down in light of the weaker-than-expected interim results.