Ryohin Keikaku (7453) Q1 2026 earnings summary

Executive summary

• Operating revenue for the quarter rose 15.4% year-over-year to ¥228,227 million, with operating profit up 29.3% to ¥28,383 million and net income attributable to owners of parent up 47.4% to ¥22,047 million, driven by strong overseas sales, new store openings, and improved margins.

• All business segments reported increases in both revenue and profit, with notable expansion in East Asia and Asia East/South & Oceania.

• Net income benefited from a ¥2.3 billion extraordinary gain from the sale of all cross-shareholdings.

• Gross profit margin and operating profit margin improved due to cost reductions and deferred SG&A expenses.

• Full-year forecasts remain unchanged, with expectations to achieve planned revenue and profit growth.

Financial highlights

• Operating revenue: ¥228,227 million (up 15.4% year-over-year), driven by strong overseas sales and increased store count.

• Operating profit: ¥28,383 million (up 29.3% year-over-year), with margin up 1.3pp to 12.4%.

• Net income attributable to owners of parent: ¥22,047 million (up 47.4% year-over-year), including a ¥2.3 billion extraordinary gain.

• Gross profit margin improved by 1.1pp YoY to 52.6% due to in-house production cost reductions.

• Basic earnings per share: ¥41.56 (reflecting a 2-for-1 stock split).

Outlook and guidance

• Full-year forecast for FY ending August 31, 2026: operating revenue ¥860,000 million (up 9.6%), operating profit ¥79,000 million (up 7.0%), net income attributable to owners of parent ¥53,000 million (up 4.2%), and basic EPS ¥99.91.

• No change to previously disclosed full-year forecast; global SG&A expenses and exchange rate assumptions unchanged.

• All segments forecast further sales growth in LFL stores + EC for FY26/8.