Round One (4680) Q2 2025 earnings summary

Executive summary

• Consolidated ordinary profit for FY2025.3 2Q rose 21.9% year-over-year to ¥12.82bn, with profit up 11.5% to ¥8.68bn.

• Net sales for the six months ended September 30, 2024, rose 12.0% year-over-year to ¥86.03bn, with operating profit up 24.2% to ¥13.00bn.

• Both Japan and the USA segments contributed to profit growth, with the USA showing a 22.0% increase in gross profit.

• Store network expanded to 156 globally, with new openings in both Japan and the USA.

• Comprehensive income declined 37.6% year-over-year to ¥6.68bn, mainly due to a negative foreign currency translation adjustment.

Financial highlights

• Total sales for 1H FY2025.3 reached ¥86.03bn, up 12.0% year-over-year.

• Operating profit increased 24.2% year-over-year to ¥13.00bn.

• Gross profit increased to ¥15.96bn from ¥13.09bn year-over-year, with gross margin improvement.

• Ordinary profit margin improved to 14.9% from 13.7% a year earlier.

• Basic earnings per share rose to ¥32.18 from ¥28.76 year-over-year.

Outlook and guidance

• FY2025.3 full-year consolidated sales are planned at ¥171.31bn, with ordinary profit at ¥25.06bn.

• Net profit guidance for the year is ¥17.00bn.

• Store network expected to reach 165 by year-end, with 8 new US stores and 4 in Japan.

• Equipment investment planned at ¥27.29bn, mainly for new and existing stores.

• Annual dividend forecast raised to ¥16.00 per share.