ABC-Mart (2670) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 was ¥97.7 billion, up 1.5% year-over-year, with domestic sales growth offsetting declines overseas.

• Operating profit rose 1.9% to ¥18.8 billion, while net profit attributable to parent was ¥12.95 billion, down 1.2% year-over-year.

• Basic EPS for Q1 was ¥52.31, compared to ¥52.93 in the prior year.

• Comprehensive income dropped significantly to ¥7,981 million from ¥15,938 million in the prior year period, mainly due to negative foreign currency translation adjustments.

• Domestic same-store sales increased 5.8%, driven by higher customer traffic and average spend.

Financial highlights

• Gross profit margin improved to 52.5% (+0.3pt YoY), with domestic margin at 56.3% (+0.6pt) and overseas at 40.4% (-3.5pt).

• SG&A ratio rose to 33.3% (+0.3pt YoY), mainly due to higher personnel and advertising costs.

• Inventory increased by ¥11.6 billion from the previous fiscal year-end, mainly from domestic procurement.

• Ordinary profit was ¥19,062 million, slightly down from ¥19,183 million year-over-year.

• Total assets increased to ¥432,543 million as of May 31, 2025, up from ¥418,725 million at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales are forecast to rise 3.1% year-over-year to ¥383,900 million, with operating profit expected to grow 2.3% to ¥64,000 million.

• Profit attributable to owners of parent is projected at ¥45,530 million for the full year, with basic EPS of ¥183.87.

• Interim and year-end dividends are forecast at ¥35.00 per share each, totaling ¥70.00 for the year.

• Domestic market supported by improved employment and inbound demand, while overseas faces inflation and political risks.

• Continued focus on digital advertising, early sales campaigns, and expanding hands-free shoe lineup.