Asahi Co (3333) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended November 20, 2025, were ¥64,110 million, down 0.7% year-over-year, reflecting sluggish new bicycle sales, cautious consumer spending, and a shift toward repairs and reused products.

• Operating profit declined 22.6% year-over-year to ¥4,321 million, and net profit fell 22.4% to ¥2,928 million.

• The company expanded its store network to 552 locations, including 534 directly operated and 18 franchise stores, with accelerated store openings in the second half.

• Demand for reused and electric-assist bicycles increased, prompting expansion of the West Japan Support Center for refurbishment.

Financial highlights

• Gross profit margin improved slightly to 47.8% from 47.5% year-over-year, with gross profit at ¥30,649 million.

• Ordinary profit fell 20.2% to ¥4,511 million, and basic earnings per share decreased to ¥112.43 from ¥144.90.

• E-commerce net sales rose 14.9% year-over-year, with the e-commerce conversion ratio reaching 18.5%.

• SG&A expenses increased 5% year-over-year, mainly due to wage hikes and business expansion.

• Extraordinary losses rose to ¥117 million, mainly from asset retirements and disaster-related losses.

Outlook and guidance

• The full-year forecast for FY2026 was revised downward: net sales now expected at ¥81,000 million, operating profit at ¥4,230 million, and net profit at ¥2,640 million.

• Basic earnings per share for the full year is forecast at ¥101.38.

• The challenging environment is expected to persist into Q4, with continued weak demand for durable consumer goods.

• Dividend per share is planned at ¥50, maintaining a stable shareholder return policy with a 35% payout ratio target.