Zensho (7550) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, increased 10.6% year-over-year to ¥936.7 billion, with operating profit up 4.9% to ¥60.9 billion and net profit up 4.1% to ¥35.5 billion.

• Cash flow from operating activities rose 26.7% year-over-year to ¥66.4 billion.

• The number of stores at period end was 14,918, with 818 new stores opened and 1,319 closures during the period.

• The business environment was impacted by geopolitical tensions, U.S. trade policy trends, rising raw material costs, and subdued consumer sentiment amid inflation.

Financial highlights

• Cost of sales increased 12.1% year-over-year, slightly outpacing sales growth, with gross margin percentage declining by 0.6 points.

• Ordinary profit grew 7.0% year-over-year to ¥59.1 billion.

• Gross profit increased to ¥507.7 billion from ¥464.2 billion year-over-year.

• Comprehensive income for the period was ¥50.4 billion, up 11.7% year-over-year.

• Basic earnings per share for the nine months was ¥215.67, up from ¥209.89 in the prior year.

Outlook and guidance

• Full-year forecast (ending March 31, 2026): net sales ¥1,223.5 billion (+7.6%), operating profit ¥82.0 billion (+9.1%), ordinary profit ¥77.4 billion (+7.7%), profit attributable to owners of parent ¥42.5 billion (+8.2%), EPS ¥260.94.

• No changes to previously announced forecasts.