Trial Holdings (141A) Q3 2025 earnings summary

Executive summary

• Sales for the nine months ended March 31, 2025, rose 11.7% year-over-year to JPY 600.0 billion, driven by 3.8% same-store sales growth and 27 new store openings.

• Gross profit increased 13.0% year-over-year, with gross margin improving to 20.0%.

• Operating profit declined 12.6% year-over-year to JPY 13.4 billion due to a 17.1% rise in SG&A expenses, mainly from new store costs and higher labor and electricity costs.

• Net income attributable to owners fell 11.8% year-over-year to JPY 8.37 billion.

• Store count reached 345, with significant expansion in Super Center and Small Format stores.

Financial highlights

• Nine-month sales: JPY 600.0 billion (+11.7% YoY); gross profit: JPY 120.0 billion (+13.0% YoY); operating profit: JPY 13.4 billion (−12.6% YoY).

• Q3 sales: JPY 196.3 billion (+12.9% YoY); gross profit: JPY 39.96 billion (+15.2% YoY); operating profit: JPY 3.76 billion (−1.7% YoY).

• SG&A expenses for nine months: JPY 108.6 billion (+17.1% YoY), including JPY 550 million advisory fee for Seiyu acquisition.

• Basic earnings per share for the nine months was JPY 68.61, down from JPY 96.72 YoY.

• Equity-to-asset ratio improved to 45.3% as of March 31, 2025, from 40.8% as of June 30, 2024.

Outlook and guidance

• Full-year sales forecast revised to JPY 802.9 billion (−0.7% vs. initial plan), with gross profit at JPY 163.7 billion and net income at JPY 10.4 billion.

• Operating profit is projected at JPY 19.2 billion, nearly flat year-over-year (+0.2%).

• Same-store sales growth plan revised to +3.4%, gross profit margin target raised to 20.4%.

• Dividend forecast for FY2025 is JPY 16.00 per share, up from JPY 15.00 in FY2024.

• Management expects labor costs to rise and plans to account for JPY 3 billion in Q4 for store impairment and other extraordinary losses.