ABC-Mart (2670) Q1 2025 earnings summary

Executive summary

• Consolidated net sales rose 8.6% year-over-year to ¥96.2 billion, driven by strong domestic and overseas demand.

• Operating income increased 9.0% year-over-year to ¥18.4 billion, with net income attributable to parent up 10.1% to ¥13.1 billion.

• Comprehensive income surged 65.3% year-over-year to ¥15,938 million.

• Store network expanded to 1,500 locations, with 23 new openings and 10 closures during the quarter.

Financial highlights

• Gross profit margin declined by 0.6pt to 52.2% due to higher national brand sales mix and increased procurement costs for private label products.

• Gross profit increased to ¥50,190 million from ¥46,809 million year-over-year.

• SG&A expenses rose 6.2% year-over-year, but the SG&A ratio improved by 0.8pt to 33.0%.

• EPS for the quarter was ¥52.93, up from ¥48.09, reflecting the 3-for-1 stock split.

• Total assets as of May 31, 2024, were ¥402,431 million, up from ¥387,336 million at the previous fiscal year-end.

Outlook and guidance

• Full-year forecast for fiscal year ending February 28, 2025, projects net sales of ¥365,800 million (up 6.3% year-over-year), operating profit of ¥58,700 million (up 5.4%), and profit attributable to owners of parent of ¥40,300 million (up 0.7%).

• Basic earnings per share for the full year is forecast at ¥162.75.

• Domestic market supported by yen depreciation, inbound tourism, and expanding consumer demand.

• Overseas, Asian markets showed growth despite inflation concerns; U.S. e-commerce performed well.