H2O Retailing (8242) Q3 2026 earnings summary

Executive summary

• Cumulative consolidated operating profit decreased year-over-year due to a reactionary decline in inbound sales and reduced sales floor space from upscale renovation at Hankyu Main Store, but results exceeded company forecasts.

• Net sales for the third quarter reached ¥515,864 million, a slight increase of 0.2% year-over-year.

• Operating profit declined by 12.6% to ¥25,266 million compared to the same period last year.

• Profit increased significantly due to a gain on the sale of policy-based shareholdings.

• Supermarket and Shopping Center segments performed steadily, offsetting some declines in the Department Store segment.

Financial highlights

• 3Q cumulative gross sales: JPY 872.8 bn (down 0.1% YoY); operating profit: JPY 25.3 bn (down 12.6% YoY); profit: JPY 29.0 bn (down 22.7% YoY).

• 3Q segment operating profit: Department Store down 23.6%, Supermarket up 14.5%, Shopping Center flat, Other up 142.1%.

• Gross profit for the period was ¥232,664 million, up slightly from ¥232,003 million year-over-year.

• Selling, general and administrative expenses increased to ¥207,398 million from ¥203,101 million.

• Earnings per share (diluted) rose to ¥320.92 from ¥314.01 year-over-year.

Outlook and guidance

• Full-year forecast: gross sales JPY 1,163.0 bn (+0.3% YoY), operating profit JPY 30.0 bn (down 13.9% YoY), profit JPY 24.0 bn (down 31.1% YoY).

• Full-year net sales forecast is ¥689,000 million, up 1.1% year-over-year.

• Annual dividend planned at JPY 44, up JPY 2 from previous year.

• Full-year consolidated forecast remains unchanged despite ongoing renovation impacts and uncertain inbound sales recovery.

• Target for full-year inbound sales is JPY 105.0 bn, with 75% achieved by 3Q.