ARCS (9948) Q3 2026 earnings summary

Executive summary

• Revenue for the nine months ended November 30, 2025, increased 3.4% year-over-year to ¥464.8 billion, with existing store sales up 3.1%.

• Operating income rose 18.2% to ¥11.89 billion, and net income attributable to shareholders grew 20.6% to ¥8.50 billion year-over-year.

• Gross profit margin remained stable at 25.0%, while SG&A expenses increased 2.1%, contained within gross profit growth.

• The group continued to focus on product differentiation, productivity improvements, and digital initiatives, including expanding online sales and launching a mobile membership app.

• Store renovations and format changes continued, with 16 stores remodeled and one closed, bringing the total to 374 stores at period-end.

Financial highlights

• Gross profit was ¥116.4 billion, up 3.5% year-over-year.

• Operating income reached ¥11.89 billion (+18.2%), ordinary income ¥13.06 billion (+15.7%), and net income attributable to shareholders ¥8.50 billion (+20.6%).

• EPS for the period was ¥157.54, up from ¥130.49 a year earlier.

• Comprehensive income rose sharply to ¥10.07 billion (+76.2% year-over-year).

Outlook and guidance

• Full-year revenue is forecast at ¥623.0 billion (+2.4% year-over-year), with operating income of ¥16.4 billion (+2.9%) and net income attributable to shareholders of ¥11.2 billion (+1.2%).

• No changes have been made to the previously announced earnings forecast.

• Annual dividend forecast is ¥74 per share, unchanged from prior guidance.