ARCS (9948) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of ¥626.9 billion for the fiscal year ended February 2026, up 3.1% year-over-year, with existing store sales rising 2.9%.

• Operating profit reached ¥17.6 billion, a 10.6% increase year-over-year, and net profit attributable to shareholders grew 12.5% to ¥12.4 billion.

• Gross profit improved 3.2% year-over-year, with all profit stages seeing year-over-year growth due to cost control and productivity gains.

• The group expanded digital initiatives, store renovations, and product offerings, supporting customer growth.

Financial highlights

• Revenue: ¥626.9 billion (up 3.1% year-over-year); operating profit: ¥17.6 billion (up 10.6%); net profit: ¥12.4 billion (up 12.5%).

• Gross profit: ¥157,815 million, up 3.2% year-over-year; gross profit margin improved to 25.2%.

• SG&A expenses were controlled at 2.3% above the previous year, with a ratio of 22.4% to sales.

• EPS: ¥231.36, up from ¥204.96 year-over-year.

• Cash and equivalents at year-end: ¥91,130 million, up from ¥80,035 million.

Outlook and guidance

• Fiscal year ending February 2027 forecasts revenue of ¥648.0 billion (up 3.4% year-over-year) and operating profit of ¥18.0 billion (up 2.1%), both record highs.

• Net income forecast for FY2027 is ¥12.4 billion (−0.4% year-over-year).

• Plans include opening four new stores, remodeling 20 stores, and a new logistics center to improve supply chain efficiency.

• Focus on productivity improvements through AI, automation, and digital transformation.

• Annual dividend forecast maintained at ¥82 per share.