Ryohin Keikaku (7453) Q3 2025 earnings summary

Executive summary

• Record-high profits and revenue for FY2025 Q3, surpassing expectations and prompting an upward revision of full-year guidance.

• Operating revenues for the nine months ended May 31, 2025, rose 19.2% YoY to ¥591.0B; operating profit up 39.9% YoY to ¥59.4B.

• Profit attributable to owners of parent grew 30.1% YoY to ¥43.6B.

• Strong sales in Japan, East Asia, and Europe/North America, with customer growth and successful store expansion.

• Supply chain reforms and cost improvements contributed to higher gross margins.

Financial highlights

• Operating revenue for nine months rose 19.2% YoY to ¥591.0B; operating profit up 39.9% YoY to ¥59.4B.

• Gross profit margin improved by 0.8pp YoY to 51.2%; operating profit margin reached 10.1%.

• Net income attributable to owners of parent was ¥43.5B, aided by a ¥3.0B tax effect from European business reorganization.

• Basic earnings per share for the nine months was ¥164.50, up from ¥126.66 YoY.

• Comprehensive income decreased 39.8% YoY to ¥35.5B.

Outlook and guidance

• Full-year operating revenue revised up to ¥776.0B, operating profit to ¥70.0B, and net income to ¥47.0B.

• Operating profit margin forecast at 9.0% for the year; Q4 profit expected to decline due to absence of prior FX gains and higher SG&A.

• LFL+EC sales outlook raised: 113% for Japan, 108% for mainland China, 110% for Europe/North America.

• Basic earnings per share forecasted at ¥177.23 for the fiscal year ending August 31, 2025.

• Dividend per share set at ¥44 for the fiscal year ending August 31, 2025.