Laxus Technologies (288A) Q1 2027 earnings summary

Executive summary

• Net sales for 1Q FY03/2027 were JPY 519.1 million, representing 92% of the prior year, with operating profit rising to JPY 63.6 million, up 137% YoY, driven by improved advertising efficiency and a shift to profitability-focused sales.

• Subscriptions returned to net growth by quarter-end, reaching 17,245, and high-value bag and EC sales increased, while BtoB sales were reduced to prioritize profitability.

• SG&A expenses decreased to 83% YoY, mainly due to a 37% reduction in advertising costs, totaling a JPY 41 million cut.

• Launched new premium services, including "Royal Closet" and rent-to-own, and began collaboration with ANA Group for expanded reach.

Financial highlights

• Net sales: JPY 519.1 million (down 8.1% YoY).

• Operating profit: JPY 63.6 million (up 137% YoY).

• Ordinary profit: JPY 55.2 million (up 77.7% YoY).

• Net profit: JPY 36.4 million (down 8.5% YoY), mainly due to deferred income tax adjustments.

• ARPU was JPY 8,680, a decrease of JPY 359 YoY.

Outlook and guidance

• FY03/2027 full-year forecast: Net sales JPY 2,546 million (+11.6%), operating profit JPY 295 million (+59.5%), net profit JPY 152 million (+55.1%).

• Forecasts are subject to risks including global economic trends and rising crude oil prices.

• Service expansion planned into new categories (e.g., sunglasses, premium down jackets) and further EC integration.

• Dividend forecasts for FY03/2027 remain undetermined.