HUMAN MADE (456A) Q1 2027 earnings summary

Executive summary

• Q1 FY27 non-consolidated results for the three months ended April 30, 2026: net sales of ¥4.299bn, operating income of ¥1.233bn and net income of ¥870m.

• Sales rose 59.6% YoY and operating profit increased 75.9%, exceeding prior sales guidance; management described results as on track against the FY27 plan.

• Board resolved to acquire all shares of UNDERCOVER CO., LTD.; consolidation is targeted from Q1 of the fiscal year ending January 2028.

Financial highlights

• Gross profit increased 65.4% YoY to ¥2.784bn; gross margin expanded 2.3 points to 64.8%.

• Operating expenses rose 58.0% to ¥1.550bn; operating margin improved 2.7 points to 28.7%, despite initial costs for new stores and relocation.

• Ordinary profit rose 70.7% YoY to ¥1.198bn; basic and diluted EPS were ¥9.50 and ¥9.28, respectively.

• Total assets were ¥15.352bn and net assets ¥12.671bn at April 30, 2026.

Outlook and guidance

• FY27 forecast remains sales of ¥18.5bn, operating profit of ¥4.8bn, ordinary profit of ¥4.75bn and net income of ¥3.3bn; EPS forecast is ¥36.01.

• FY27 forecast gross margin is 65.4% and operating margin 25.9%; operating expenses are forecast to rise 52.0%.

• Forecast includes ¥1.0bn of flagship pre-opening and overseas expansion costs; excluding these costs, core operating profit is forecast at ¥5.7bn and margin at 30.8%.

• Q2 sales guideline is ¥4.0–4.4bn; operating margin is expected to decline QoQ as flagship pre-opening rent and personnel costs ramp up.

• No dividends are forecast for FY27; UNDERCOVER acquisition impact on FY27 results is expected to be minor.