Ryohin Keikaku (7453) Q4 2025 earnings summary

Executive summary

• Operating revenue and all profit levels for FY25/8 reached record highs, significantly exceeding forecasts, driven by strong overseas sales, especially in mainland China, Europe, and North America, as well as steady sales in existing stores and new store openings.

• Enhanced product development, particularly in skincare, and global expansion were key contributors to performance.

• The company is progressing one year ahead of its original 3-year mid-term plan and aims for continued global growth through eight strategic growth drivers, including OMO and ESG initiatives.

• Store count totaled 1,412 globally, with 683 in Japan and 729 overseas, reflecting active expansion and scrap-and-build initiatives, especially in China.

Financial highlights

• Operating revenue rose 18.6% YoY to ¥784.6 billion; operating profit increased 31.5% YoY to ¥73.8 billion, with an operating margin of 9.4%.

• Net income attributable to owners of parent was ¥50.8 billion, aided by a tax benefit from European restructuring.

• Ordinary profit increased 29.6% YoY to ¥72.3 billion; comprehensive income was ¥49.1 billion, up 22.3%.

• Gross profit margin improved by 0.5pp to 51.4%; SG&A ratio improved by 0.4pp to 41.9%.

• Cash and cash equivalents at year-end were ¥135.4 billion, up ¥9.8 billion from the previous year.

Outlook and guidance

• FY26/8 guidance projects operating revenue up 9.6% YoY to ¥860.0 billion and operating profit up 7.0% YoY to ¥79.0 billion.

• Net income is expected at ¥53.0 billion; dividend per share to increase post stock split.

• Store count to exceed 1,500 by August 2026, with major overseas expansion and flagship openings planned.

• Long-term targets for FY28/8: ¥1 trillion in revenue, ¥100 billion in operating profit, and 10% operating margin.

• Basic earnings per share for FY2026 is projected at ¥99.91, reflecting the recent 2-for-1 stock split.