H2O Retailing (8242) Q2 2027 earnings summary

Executive summary

• 1H FY27 gross sales rose 5.5% YoY to ¥585,965m; net sales increased 0.1% to ¥333,338m.

• Operating profit rose 15.8% to ¥13,725m, ordinary profit rose 19.3% to ¥14,812m, and parent-attributable profit rose 115.5% to ¥14,890m.

Financial highlights

• Gross profit increased to ¥153,595m from ¥148,570m; SG&A rose to ¥139,869m from ¥136,715m.

• SG&A increased 2.3% YoY; advertising rose 11.7%, sales commissions 10.6% and depreciation 2.6%.

• H1 profit was ¥15,432m versus ¥7,416m; comprehensive income declined to ¥12,775m from ¥18,137m.

Outlook and guidance

• FY27 forecast: gross sales ¥1,230,500m (+5.9%), net sales ¥695,000m (+2.2%), and operating profit ¥33,500m (+3.4%).

• Full-year ordinary profit is forecast at ¥34,000m (-1.5%) and parent-attributable profit at ¥23,500m (-21.5%); EPS forecast is ¥207.69.

• 2H operating profit is forecast at ¥19,774m (-3.7%), ordinary profit at ¥19,187m (-13.2%) and profit at ¥8,609m (-62.6%).