Ryohin Keikaku (7453) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 results far exceeded expectations, with operating revenue up 21.3% YoY to 197.6 billion yen, operating profit up 58.2%, and net income up 52.6%, all reaching record quarterly highs.

• Growth was driven by strong domestic and overseas sales, new store openings, improved gross profit margin, and favorable FX rates.

• The number of stores reached 1,348 globally (649 in Japan, 699 overseas) as of November 30, 2024.

• Progress aligns with the Three-Year Rolling Plan (FY2025–FY2027), with a strong start to the fiscal year.

Financial highlights

• Q1 operating revenue: 197.6 billion yen (+21.3% YoY); operating profit: 21.9 billion yen (+58.2% YoY); net income: 14.9 billion yen (+52.6% YoY).

• EPS: 56.49 yen (up from 37.07 yen YoY); comprehensive income: 24.1 billion yen (+73.2% YoY).

• Operating gross profit margin improved by 1.4pp YoY to 51.6%; operating profit margin reached 11.1%.

• SG&A ratio declined 1.2pp YoY to 40.5% despite higher personnel and IT costs.

• Inventories increased by 32.7 billion yen YoY to 162.8 billion yen, mainly in Japan.

Outlook and guidance

• Full-year FY2025 forecast revised: operating revenue 754.0 billion yen (+20.0 billion yen), operating profit 64.0 billion yen (+9.0 billion yen), net income 44.0 billion yen (+6.0 billion yen), EPS 166.21 yen.

• Dividend forecast raised to 44 yen per share for FY2025.

• Operating profit margin outlook revised up to 8.5%; ROA and ROE expected at 11.7% and 14.2% respectively.

• LFL sales outlook revised up: Japan 110%, East Asia 103%, Europe/North America 106%.

• Second half profit expected to decline slightly as FX tailwinds subside.