H2O Retailing (8242) Q3 2025 earnings summary

Executive summary

• Gross sales, operating profit, ordinary profit, and profit all reached record highs, primarily driven by strong Department Store Business performance.

• Net sales for 3Q FY2025 reached ¥514,887 million, up 3.9% year-over-year.

• Operating profit increased across all segments, with steady progress toward full-year targets; operating profit rose 30.4% to ¥28,919 million.

• Profit attributable to owners of parent more than doubled to ¥37,449 million, a 110.7% year-over-year increase.

• Comprehensive income for the period was ¥31,899 million, up 53.2% year-over-year.

Financial highlights

• 1-3Q FY2025 gross sales rose 9.0% year-over-year to ¥874.0 billion; operating profit up 30.4% to ¥28.9 billion.

• Gross profit increased to ¥232,003 million from ¥215,837 million year-over-year.

• Extraordinary income surged to ¥26,618 million, mainly from gains on sale of investment securities and step acquisitions.

• Total assets grew to ¥739,987 million as of Dec. 31, 2024, from ¥710,089 million at the previous fiscal year-end.

• Net assets rose to ¥306,266 million, with an owner's equity ratio of 39.7%.

Outlook and guidance

• Full-year consolidated gross sales forecast slightly revised upward; operating profit, ordinary profit, and profit forecasts unchanged.

• Full-year net sales forecast at ¥682,000 million, up 3.7% year-over-year.

• Operating profit projected at ¥31,000 million (up 18.4%), ordinary profit at ¥32,000 million (up 14.8%), and profit attributable to owners of parent at ¥30,000 million (up 37.0%).

• 4Q expected to see extraordinary losses from impairment of non-current assets.

• Annual dividend planned at ¥40 per share, up ¥12 from previous year.