Aeon (8267) Q3 2025 earnings summary

Executive summary

• Consolidated operating revenue for the third quarter reached JPY 7,470.5 billion, up JPY 444.7 billion year-over-year, marking a record high for the cumulative nine months for the 13th consecutive year.

• Operating revenue for the nine months ended November 30, 2024, rose 6.0% year-over-year to ¥332,729 million, with operating income up 11.9% to ¥38,193 million and ordinary income up 9.3% to ¥29,742 million.

• Net income attributable to owners declined 16.5% year-over-year to ¥12,279 million, mainly due to extraordinary losses from business restructuring and impairment.

• Retail business underperformed due to weak sales of fall and winter items amid record high temperatures, but a strong recovery began in November, driven by enhanced price appeal and sales promotions.

• Overseas, Vietnam saw profit growth and sales up 7.5%, while China faced profit declines due to new mall openings and closures.

Financial highlights

• Third quarter operating revenue: JPY 2.4711 trillion, up JPY 156.6 billion year-over-year.

• Operating income increased 11.9% year-over-year to ¥38,193 million, but net income declined 16.5% due to extraordinary losses.

• Gross profit increased to ¥65,244 million (+10.8% year-over-year); SG&A expenses rose to ¥27,050 million (+9.3%).

• Cash and cash equivalents at period-end: ¥88,408 million.

• Net income per share was ¥53.96, down from ¥64.64 in the prior year period.

Outlook and guidance

• No changes to full-year forecast; strong sales momentum in November and December expected to continue into the fourth quarter.

• Full-year guidance maintained: operating revenue projected at ¥453,500 million (+7.2% YoY), operating income at ¥55,000 million (+18.5%), and net income at ¥16,500 million (-19.1%).

• Revised FY2025 operating income target to ¥69.0 billion, down from previous ¥85.0 billion, reflecting slower-than-expected recovery.

• Annual dividend forecast unchanged at ¥50.00 per share.

• Fourth quarter cost reduction target set at approximately JPY 30 billion versus budget.