K's Holdings (8282) investor relations material

Executive summary

• Achieved sales and profit growth in FY3/2026, driven by strong air conditioner, PC, and mobile phone sales, with air conditioners benefiting from record high temperatures, government subsidies, and replacement cycles.

• Net sales rose 2.9% year-over-year to ¥759.71 billion, with operating profit up 23.0% and net income up 50.3%.

• Gross profit margin improved in Q4 due to high-margin air conditioner sales, offsetting earlier pressure from lower-margin PCs and mobile phones.

• Store network remained stable at 556 stores, with five openings and five closures, and a slight increase in sales floor area.

Financial highlights

• FY3/2026 net sales: ¥759.7 billion (+2.9% YoY); operating profit: ¥26.8 billion (+23.0% YoY); net income: ¥14.3 billion (+50.3% YoY).

• Q4 net sales: ¥195.3 billion (+6.6% YoY); operating profit: ¥10.2 billion (+80.5% YoY).

• Gross profit margin for FY: 27.7%; Q4: 29.0%; gross profit at ¥210.21 billion.

• Cash and cash equivalents at year-end were ¥10.86 billion, up ¥1.53 billion from the prior year.

• Equity ratio at end of FY3/2026: 58.9%; net assets per share: ¥1,609.62.

Outlook and guidance

• FY3/2027 forecast: net sales ¥785 billion (+3.3% YoY), operating profit ¥30.5 billion (+13.8% YoY), net income ¥20 billion (+39.7% YoY).

• Nine new directly managed stores are planned to open, with five closures.

• Air conditioners expected to drive growth due to anticipated price increases from new energy-saving standards in April 2027.

• Gross profit margin projected to rise to 28.0% as product mix shifts toward higher-margin air conditioners.