Gift Holdings (9279) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months reached ¥20,592 million, up 23.8% year-over-year, with operating profit at ¥2,065 million (+29.2%) and profit attributable to owners of parent up 22.6% to ¥1,385 million.

• Aggressive new store openings and strong existing store sales, especially for flagship brands, drove business expansion.

• The company invested in production and logistics infrastructure, including a new factory, distribution centers, and relocated its head office to Shibuya.

• Despite one-time refurbishing and new store expenses in 3Q, the company secured a strong foundation for future earnings.

• Monthly sales per company-owned store hit record highs, supported by quality enhancements and price revisions.

Financial highlights

• Operating profit margin was 10.0%, with ordinary profit at ¥2,120 million, up 28.4% year-on-year.

• Net sales per man-hour at company-owned stores rose to ¥6,329 from ¥6,133 year-over-year.

• Labor cost rate slightly decreased to 24.5% from 24.7% year-over-year.

• Basic earnings per share increased to ¥69.44 from ¥56.67 year-on-year.

• Total assets grew to ¥15,584 million, up ¥3,056 million from the previous fiscal year-end, mainly due to property, plant, and equipment investments.

Outlook and guidance

• Full-year forecast for FY2024: net sales ¥28,500 million (+24.0% YoY), operating profit ¥3,000 million (+27.5%), profit attributable to owners ¥1,960 million (+22.7%), and EPS ¥98.20.

• Store opening plan targets 832 stores by October 2024, a net increase of 87 stores year-over-year.

• Medium-term plan aims for ¥40 billion in net sales and ¥3.8 billion in operating profit by FY2026.

• No revisions to earnings forecasts announced since June 14, 2024.