Eco's (7520) Q4 2026 earnings summary

Executive summary

• Revenue increased 0.6% year-over-year to ¥137,985 million, but net income dropped 36% to ¥2,645 million due to higher personnel costs and impairment losses at some stores.

• Operating profit fell 4.8% to ¥5,729 million, and ordinary profit declined 6.3% to ¥5,891 million.

• Three new stores opened, eleven remodeled, and ¥2,236 million in impairment losses recognized for 21 underperforming stores.

• Cash and cash equivalents decreased by ¥3,286 million to ¥10,150 million, mainly due to higher investing and financing outflows.

• Strengthening of prepared and frozen foods led to a higher sales composition in these categories.

Financial highlights

• Operating revenue: ¥137,985 million (+0.6% YoY); operating profit: ¥5,729 million (−4.8% YoY); ordinary profit: ¥5,891 million (−6.3% YoY); net income: ¥2,645 million (−36.0% YoY).

• Comprehensive income was ¥3,050 million, down 27.8% year-over-year.

• Basic earnings per share fell to ¥235.60 from ¥368.46.

• Free cash flow: ¥263 million (−88.1% YoY), mainly due to increased capital expenditures.

• Net assets increased to ¥29,229 million, with an equity ratio of 51.8%.

Outlook and guidance

• FY2026 forecast: Revenue ¥138,000 million, ordinary profit ¥5,500 million, net income ¥3,500 million.

• For the fiscal year ending February 28, 2027, gross revenue is forecast at ¥138,000 million (flat), operating profit at ¥5,500 million (down 4.0%), and net income at ¥3,500 million (up 32.3%).

• Net income expected to recover due to absence of impairment losses.

• Four new stores and ten remodels planned; company to expand private brands and improve customer service.

• Continued cost pressures and competitive challenges anticipated.