Yellow Hat (9882) investor relations material

Executive summary

• Net sales and gross profit reached record highs for Q1 FY26, driven by strong demand for tires, expendable auto parts, and consumables, as well as increased labor charge income amid Middle East tensions and higher temperatures.

• Operating profit declined 16.9% year-over-year due to higher SG&A expenses from expanded store staffing, human capital investment, digital transformation, and increased store operating costs.

• Profit attributable to owners of parent rose 6.3% year-over-year, aided by extraordinary income from the sale of underperforming or non-current real estate assets.

• Retail segment outperformed with strong tire and expendable auto part sales, while wholesale remained flat year-over-year.

• Store network expanded with 1 new Yellow Hat store and 3 new motorcycle business stores opened, offset by 2 store closures.

Financial highlights

• Net sales: ¥41,248 million, up 2.4% year-over-year; gross profit: ¥18,530 million, up 1.3%.

• Operating profit: ¥2,907 million, down 16.9%; ordinary profit: ¥3,360 million, down 13.0%.

• Profit attributable to owners of parent: ¥2,846 million, up 6.3%.

• Basic EPS: ¥33.39, up 10.0% year-over-year (up from ¥30.34 YoY).

• Comprehensive income: ¥4,321 million, up from ¥2,568 million year-over-year.

Outlook and guidance

• FY26 full-year net sales forecast at ¥176.0 billion (+2.8% YoY), operating profit at ¥16.0 billion (+6.0%), and profit attributable to owners of parent at ¥12.2 billion (+1.9%).

• In-store sales at existing stores planned at 104% year-over-year.

• Dividend forecast for FY26/FY27 is ¥68 per share, marking the 17th consecutive increase.

• No changes to previously announced forecasts.