H2O Retailing (8242) Q1 2025 earnings summary

Executive summary

• Consolidated gross sales and operating profit reached record highs in 1Q, driven by strong Department Store Business performance and rapid growth in inbound sales.

• Net sales for 1Q FY2025 rose 4.6% year-over-year to ¥161,895 million, with operating profit up 94.7% to ¥9,266 million and ordinary profit up 114.6% to ¥10,198 million.

• Profit attributable to owners of parent surged 685.0% year-over-year to ¥26,464 million, driven by extraordinary income from asset sales and step acquisitions.

• Upward revision of 1H and full-year forecasts, with plans to increase dividends.

• Comprehensive income increased to ¥13,443 million from ¥10,413 million in 1Q FY2024.

Financial highlights

• 1Q gross sales: ¥276.4 bn (+13.0% YoY); net sales: ¥161.9 bn (+4.6% YoY).

• Operating profit: ¥9.3 bn (+94.7% YoY); ordinary profit: ¥10.2 bn (+96.4% YoY).

• Profit attributable to owners of parent: ¥26.5 bn (+685.0% YoY).

• Gross profit improved to ¥73,182 million from ¥66,759 million year-over-year.

• Earnings per share (EPS) rose to ¥243.37 from ¥29.11 year-over-year.

Outlook and guidance

• Upward revision of 1H and full-year forecasts; FY2025 gross sales now expected at ¥1,175 bn (+9.4% YoY), operating profit at ¥29.5 bn (+33 YoY), and profit attributable to owners of parent at ¥30 bn (+81 YoY).

• Full-year FY2025 net sales forecast at ¥702,000 million, up 6.8% year-over-year.

• EPS for the full year forecast at ¥293.41.

• Dividend planned at ¥40 per share, up from ¥28 last year.