Tsuruha Holdings (3391) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended November 15, 2024, rose 4.0% year-over-year to ¥536,329 million, but net income attributable to owners of the parent fell 47.7% to ¥8,404 million due to impairment and store closure losses.

• Operating income decreased 1.4% year-over-year to ¥26,776 million, and ordinary income declined 1.8% to ¥27,026 million.

• The company opened 46 new stores and closed 63, resulting in 2,636 directly managed stores in Japan and 22 in Thailand at period-end.

Financial highlights

• Gross profit increased to ¥162,661 million from ¥156,760 million year-over-year, while selling, general and administrative expenses rose to ¥135,884 million.

• Impairment loss of ¥10,578 million and loss on store closings of ¥3,110 million significantly impacted net income.

• Comprehensive income dropped 55.4% year-over-year to ¥9,491 million.

• Cash and cash equivalents at period-end were ¥64,323 million, up ¥5,768 million from the previous year-end.

Outlook and guidance

• Full-year forecast (9.5 months due to fiscal year change): net sales ¥845,600 million, operating income ¥38,200 million, net income attributable to owners of the parent ¥17,400 million, and basic EPS ¥357.64.

• Dividend forecast for FY ending February 28, 2025, is ¥267.00 per share.

• The company revised its full-year forecast during the period.