FY2027 First Half Financial Results Disclosure

Overview of results

For the FY2027 first half, net sales reached a record high, driven by store openings and strong performance at existing stores. Net sales were 12,352 million yen, up 11.8% YoY. The gross profit margin was about 42.3%, showing a slight decline, but profits were maintained through price increases on private-brand (PB) products and cost controls. Operating income was 886 million yen (YoY -1.1%), with solid progress. The number of stores increased to 164 stores, up 10. Full-year guidance is for net sales of 24,293 million yen, operating income of 1,490 million yen, net income attributable to owners of parent of 1,006 million yen, and dividends of 73 yen per share.

Outlook and shareholder returns

PB ratio stands at 33.8%, a slight increase vs the previous period. While there are impacts from foreign exchange and higher store opening costs, existing-store growth and the plan to open 20 new stores will be maintained. The earnings forecast is expected to exceed the initial forecast, with key drivers being PB strengthening and customer retention through repair, insurance, and other support packs. Dividends are planned at 73 yen per share, with a payout ratio target of around 20%.