ARCS (9948) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended November 30, 2024, reached ¥449.6 billion, up 3.0% year-over-year, marking a record high for the period.

• Operating income declined 9.3% year-over-year to ¥10.1 billion, and net income attributable to shareholders fell 10.9% to ¥7.0 billion.

• Despite inflation and strong consumer savings trends, existing store sales rose 2.6% year-over-year, with customer traffic flat and average spend per customer up 2.5%.

• The company continued to expand digital initiatives, including a renewed app and online sales, and invested in store renovations and sustainability efforts.

Financial highlights

• Gross profit margin held steady at 25.0% year-over-year, while SG&A expenses increased, raising the SG&A-to-sales ratio to 22.8%.

• Operating cash flow was ¥15.6 billion, down 4.2% year-over-year; investing cash outflows rose 27.6% to ¥10.0 billion, mainly for store renovations.

• Financial position remained strong with total assets at ¥278.1 billion and equity ratio at 64.6%.

• Dividend forecast was revised upward to ¥72 per share for the full year.

Outlook and guidance

• Full-year revenue is projected at ¥613.0 billion (+3.6% YoY), with operating income of ¥17.3 billion (+2.8%) and net income of ¥11.6 billion (−1.4%).

• No changes were made to the previously announced earnings forecast.