Chori (8014) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 decreased by 7.0% year-over-year to ¥71.6 billion, with operating profit down 9.1% to ¥3.3 billion and net profit attributable to owners of parent down 39.7% to ¥2.5 billion.

• The company is progressing with the Chori Innovation Plan 2025 (CIP2025), focusing on gross profit margin improvement, digital transformation, and sustainable growth.

• The Japanese economy showed moderate recovery, but global uncertainties, including geopolitical risks and U.S. tariff policy, weighed on performance.

• Q1 results were generally in line with the full-year forecast.

Financial highlights

• Net sales fell 7.0% year-over-year to ¥71.6 billion; gross profit rose 2.0% to ¥10.1 billion; gross margin improved to 14.1% from 12.8% year-over-year.

• Operating profit declined 9.1% to ¥3.3 billion; ordinary profit dropped 32.5% to ¥3.3 billion; profit before income taxes fell 42.5% to ¥3.2 billion.

• Net profit attributable to owners of parent decreased 39.7% to ¥2.5 billion; comprehensive income declined 72.3% to ¥1.5 billion.

• Basic earnings per share for the quarter were ¥101.66, compared to ¥168.71 in the prior year.

• Total assets at June 30, 2025, were ¥140.0 billion, down from ¥146.1 billion at March 31, 2025; net assets decreased to ¥91.6 billion, with an equity ratio of 65.4%.

Outlook and guidance

• FY03/2026 is the final year of CIP2025, with focus on profitability and stable profits despite lower net sales expectations.

• Full-year forecast for FY ending March 31, 2026: net sales ¥330,000 million (+5.9% YoY), operating profit ¥15,000 million (+3.5%), ordinary profit ¥16,000 million (-1.2%), net profit attributable to owners of parent ¥11,000 million (-5.6%), and EPS ¥446.32.

• Q1 results represent 21.7% of full-year net sales and 22.8% of full-year net profit forecast.

• No changes to previously announced forecasts; actual results may vary due to external factors.