Asahi Co (3333) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended May 20, 2025, rose 0.6% year-over-year to ¥27,104.7 million, driven by strong electric-assist bicycle sales, urban store openings, and e-commerce demand.

• Operating profit declined 10.8% year-over-year to ¥3,270.9 million due to wage increases, new store openings, and higher system costs.

• E-commerce sales grew significantly, with the e-commerce share of retail rising to 19.1%.

• The company reinforced its earnings base through OMO initiatives, expanded repair services, and growth in the reuse business.

• Store count increased to 547, with two new stores opened in Kanto and Chubu regions and a new Tokyo office established.

Financial highlights

• Gross profit for the quarter was ¥12,309.6 million, with a gross margin of 45.4%.

• Ordinary profit decreased 6.7% year-over-year to ¥3,403 million, and net profit fell 6.0% to ¥2,336 million.

• Basic earnings per share for the quarter were ¥89.71, down from ¥95.35 a year earlier.

• Total assets increased 5.6% from the previous fiscal year-end to ¥57,477.8 million, with an equity ratio of 70.8%.

• SG&A expenses increased 4.6% year-over-year, mainly due to higher personnel and system costs; capital expenditures rose 20.1% to ¥331 million.

Outlook and guidance

• Full-year net sales forecast is ¥85,800 million (+5.2%), operating profit ¥5,620 million (+2.4%), net profit ¥3,650 million (+2.6%), and basic EPS ¥140.16.

• Market share expected to rise to 27%.

• Focus on expanding sales of parts, repair, and maintenance services, and strengthening OMO and CRM links.

• No changes have been made to previously announced forecasts.