Eco's (7520) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue and net income, with revenue rising 5.5% year-over-year to ¥137,176 million and net income up 15.4% year-over-year.

• Key initiatives included the acquisition of Cocos Nakamura, opening a new logistics center, and 10 store renovations, resulting in a net increase of 6 stores to 136.

• Focused on efficiency, product assortment, and strengthening private brands.

Financial highlights

• Operating revenue rose to ¥137,176 million, up 5.5% year-over-year.

• Ordinary income reached ¥6,285 million, a 6.0% increase year-over-year.

• Net income was ¥4,131 million, up 15.4% year-over-year; EPS for FY2024 was ¥368.46.

• Free cash flow decreased by 45.6% to ¥2,215 million due to increased working capital needs.

• Gross profit margin improved as gross profit increased to ¥36,067 million.

Outlook and guidance

• Forecasts a slight decrease in profit for FY2025, with ordinary income expected at ¥6,000 million and net income at ¥4,000 million; revenue forecast for FY2026 is ¥140,000 million (+2.1% YoY).

• Plans to open 4 new stores and remodel 10 stores in FY2025.

• Dividend per share to increase by ¥5 to ¥70.

• The company expects a challenging environment due to cost inflation, intense competition, and economic uncertainty.