K's Holdings (8282) Q2 2027 earnings summary

Executive summary

• H1 net sales rose 9.4% YoY to ¥412.124B; operating profit increased 92.2% to ¥25.042B and net income rose 75.1% to ¥18.386B, exceeding initial forecasts.

• Strong air-conditioner demand ahead of April 2027 energy-efficiency standards offset weaker PC sales following prior-year Windows 10 support-termination demand.

Financial highlights

• H1 net sales were ¥412.124B, gross profit ¥118.993B, operating profit ¥25.042B, ordinary profit ¥26.968B and net income attributable to owners of parent ¥18.386B.

• Gross profit increased from ¥104.390B and SG&A rose from ¥91.363B to ¥93.950B YoY; operating profit increased from ¥13.026B.

• H1 gross margin was 28.9% vs. 27.7% YoY; operating margin was 6.1% vs. 3.5%, and net margin was 4.5% vs. 2.8%.

• Basic EPS was ¥118.97 vs. ¥66.15 YoY; diluted EPS was ¥118.84 vs. ¥66.06.

Outlook and guidance

• FY2027 guidance: net sales ¥790B, operating profit ¥30.5B, ordinary profit ¥33.5B, net income ¥20B and EPS ¥129.41; guidance was unchanged after the Nov. 4 upward revision.

• Net sales forecast increased to ¥790B from ¥785B; gross margin forecast rose to 28.3% from 28.0%, while SG&A forecast increased to ¥193B from ¥189B.

• Same-store sales forecast was revised to 103.9% YoY from 102.8%; H2 same-store sales forecast was cut to 98.5% from 100.5%.

• FY2027 annual dividend forecast remained ¥48 per share, including ¥24 at the second-quarter end.