ABC-Mart (2670) Q2 2026 earnings summary

Executive summary

• Consolidated net sales for the second quarter reached ¥190.1 billion, up 0.9% year-over-year, with domestic demand improving and overseas demand sluggish due to political and economic instability.

• Operating income was ¥33.6 billion, down 1.2% year-over-year, as higher variable costs and SG&A expenses offset sales growth.

• Gross profit margin improved to 51.4% (+0.2pt), driven by strong domestic sales of regularly priced items, especially hands-free shoes.

• Profit attributable to owners of parent was ¥24.3 billion, up 0.8% year-over-year.

• Comprehensive income declined 24.1% year-over-year to ¥22,420 million.

Financial highlights

• Domestic existing store sales rose 6.0% in the first half, with customer count up 3.4% and average purchase price up 2.5%.

• Overseas sales share declined to 27.8% (down 2.9pt) due to yen appreciation.

• Consolidated SG&A expenses ratio increased to 33.7% (+0.5pt), mainly from higher personnel costs and increased advertising.

• Ordinary profit rose to ¥35,924 million, up 2.3% year-over-year.

• Cash and cash equivalents at period end were ¥199.3 billion, up from ¥191.2 billion a year earlier.

Outlook and guidance

• Full-year consolidated net sales target is ¥383.9 billion (+3.1% YoY), with operating profit forecast at ¥64.0 billion (+2.3%).

• Profit attributable to owners of parent is forecast at ¥45,530 million, up 0.4% year-over-year.

• Overseas sales expected to be ¥118.5 billion (30.9% of total), with Korea slightly down, but USA and Taiwan up year-over-year.

• Annual dividend forecast is ¥70.00 per share, unchanged from the previous year.

• Management will monitor inflation, FX rates, and inbound tourism, with continued inventory adjustments expected.