Gift Holdings (9279) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended April 30, 2025, rose 26.9% year-over-year to 17,195 million yen, driven by aggressive new store openings and strong inbound demand, with operating profit at 1,547 million yen, nearly flat year-over-year, despite cost pressures from raw materials and labor.

• Profit attributable to owners of parent was 1,032 million yen, down 2.1% year-over-year.

• Price increases and operational adjustments offset unexpected cost increases, maintaining profit structure.

• Store network expanded to 254 company-owned and 595 produced/franchise stores, with growth in both domestic and overseas markets.

• Substantial wage increases and conversion of part-time staff to regular employees to secure human resources.

Financial highlights

• Gross profit increased to 11,426 million yen from 9,185 million yen year-over-year, with gross margin stable despite higher costs.

• Operating profit margin for the period was 9.0%, below the annual goal of 10.0%.

• Net sales per man-hour increased to 6,671 yen consolidated, up from 6,600 yen year-over-year.

• Basic earnings per share was 51.68 yen, down from 52.85 yen in the prior year.

• Cash and cash equivalents at period end were 2,746 million yen, up from 1,922 million yen a year earlier.

Outlook and guidance

• Full-year forecast for FYE October 31, 2025, remains unchanged: net sales of 36,000 million yen (+26.4%), operating profit of 3,600 million yen (+23.7%), and profit attributable to owners of parent at 2,200 million yen (+17.3%).

• Dividend forecast for FYE October 31, 2025, is 22.0 yen per share, payout ratio of 20.0%.

• Management expects to cover first-half shortfalls in the second half, with April and May performance exceeding plan.

• Store opening plan targets a net increase of 103 stores year-on-year, with 51 company-owned and 52 produced/franchise stores.