ARCS (9948) Q4 2025 earnings summary

Executive summary

• Achieved record-high annual revenue exceeding ¥600 billion, reaching ¥608.3 billion, up 2.8% year-over-year, driven by steady sales, unified merchandising, and strategic initiatives in private brands, digital marketing, and store renovations.

• Profitability improved in the fourth quarter, but operating income declined 5.3% year-over-year to ¥15.9 billion, and net income attributable to shareholders fell 6.0% to ¥11.1 billion, both below prior year and budget due to increased personnel and utility costs.

• Despite inflation and cost pressures, sustainability efforts advanced, including logistics reforms and climate change initiatives, earning external recognition.

Financial highlights

• Full-year revenue reached ¥608.3 billion, up 2.8% year-over-year, but 0.8% below budget.

• Gross profit margin was 25.1%, down 0.2 points year-over-year; gross profit rose to ¥152.9 billion.

• Operating profit was ¥15.9 billion, down 5.3% year-over-year and 7.9% below budget.

• Net income totaled ¥11.1 billion, 6% below the previous year.

• EPS was ¥204.96, down from ¥214.03 the previous year.

Outlook and guidance

• FY2026 revenue forecast at ¥623.0 billion, up 2.4% year-over-year; operating profit projected at ¥16.4 billion, net income at ¥11.2 billion.

• Focus on productivity improvements, digital transformation, and continued store renovations (24 planned for next year), with expansion of online and private label offerings.

• Annual dividend forecast maintained at ¥74 per share.