H2O Retailing (8242) investor relations material

Executive summary

• Consolidated gross sales and operating profit rose, led by strong Department Store Business performance, especially at the Hankyu Main Store, with high-end merchandise and renovations boosting results.

• Net sales for 1Q FYE2027 rose 0.5% year-over-year to ¥164,541 million, with operating profit up 32.2% to ¥7,278 million and ordinary profit up 31.4% to ¥8,068 million.

• Profit attributable to owners of parent surged 157.9% year-over-year to ¥10,265 million.

• Operating profit and net profit both exceeded forecasts for the quarter.

• Comprehensive income for the quarter was ¥481 million, down from ¥8,538 million in the prior year.

Financial highlights

• 1Q FY2026 gross sales: JPY 290.7 bn (+6.4% YoY); operating profit: JPY 7.3 bn (+32% YoY); net profit: JPY 10.3 bn (+158% YoY).

• Gross profit increased to ¥76,273 million from ¥73,221 million year-over-year.

• Earnings per share (EPS) for 1Q FYE2027 was ¥89.75, up from ¥32.89 in the prior year.

• Total assets decreased to ¥680,482 million from ¥714,709 million at the end of FYE2026.

• Extraordinary income rose due to gain on sale of investment securities.

Outlook and guidance

• Full-year forecasts and dividend guidance remain unchanged due to uncertainties such as geopolitical risks, tax system changes, and consumer behavior ahead of a tax cut.

• FY2026 gross sales forecast: JPY 1,245 bn (+7.1% YoY); operating profit: JPY 32.5 bn (+0.3% YoY); net profit: JPY 23 bn (-23% YoY).

• Full-year net sales forecast at ¥712,000 million, up 4.7% year-over-year.

• Operating profit projected at ¥32,500 million, ordinary profit at ¥33,000 million, and profit attributable to owners of parent at ¥23,000 million (up 23.2% year-over-year).

• Annual dividend forecast raised to ¥48.00 per share.