SANYO SHOKAI LTD. revised its consolidated earnings forecast for the second quarter for March-August 2026. Sales were revised to ¥25.7 billion and operating profit to a loss of approximately ¥400 million, while the full-year forecast was maintained.
SANYO SHOKAI LTD. revised its consolidated earnings forecast for the second quarter of the fiscal year ending February 2027, lowering sales to ¥25.700 billion, operating profit to a ¥400 million loss, ordinary profit to a ¥360 million loss, and interim net income attributable to owners of the parent to a ¥480 million loss, with sales down 6.9% from the previous forecast. Meanwhile, the full-year earnings forecast was maintained at the same level as the previous forecast.
The apparel market remained sluggish amid ongoing uncertainty in Japan and overseas and the impact of rising prices. The company’s full-price sales in June fell to 90% of the prior-year level, and its gross margin also declined. From July onward, however, performance improved as the company stepped up full-price sales and limited the scale of its sales promotions.
Full-price sales in July and August were 108% of the prior-year level, while the gross margin improved by 3.3 percentage points year on year. However, cumulative second-quarter results are expected to fall below the initial plan.
For the fiscal year ending February 2027, SANYO SHOKAI LTD. decided to maintain its previous full-year forecast, citing expectations that the trend of full-price sales exceeding the prior-year level and significant KPI improvement from July onward will continue through the third quarter and beyond.