ARCS (9948) Q1 2025 earnings summary

Executive summary

• Revenue increased 4.1% year-over-year to ¥148.8 billion for the first quarter, with existing store sales up 3.6%.

• Operating profit declined 2.8% year-over-year to ¥3.87 billion, and net profit attributable to shareholders fell 11.4% to ¥2.66 billion.

• The company transitioned to a new "3C" management structure to accelerate decision-making and strengthen competitiveness.

• Online sales surged by approximately 60% year-over-year, and membership for the RARA card program grew by 38,000 to 3.27 million.

Financial highlights

• Gross profit margin decreased by 0.2 points to 25.1%, with gross profit up 3.1% year-over-year.

• SG&A expenses rose 3.9% due to higher personnel costs and changes in the point reward system.

• Cash and equivalents at quarter-end were ¥77.98 billion, up ¥4.55 billion year-over-year.

• Operating cash flow was ¥7.53 billion, down 12.8% year-over-year; investing cash outflow was ¥2.43 billion, down 26.4%.

Outlook and guidance

• No changes to the previously announced full-year forecast: revenue of ¥613 billion (+3.6%), operating profit of ¥17.3 billion (+2.8%), and net profit of ¥11.6 billion (−1.4%).

• Interim and year-end dividends are planned at ¥34 per share, unchanged from prior guidance.