Nishimatsuya Chain (7545) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 5.8% YoY to ¥102,636 million; operating income fell 3.7% to ¥7,032 million, ordinary income declined 1.7% to ¥7,378 million, and net income increased 0.5% to ¥4,992 million.

• Strategy focuses on accessible private-label products, domestic store growth, online sales, overseas expansion, and operational efficiency.

Financial highlights

• H1 gross profit rose 4.9% to ¥35,690 million; gross margin eased 0.3 percentage points to 34.8%.

• H1 SG&A was 27.9% of sales versus 27.5%; operating margin was 6.9% versus 7.5%, ordinary income margin 7.2% versus 7.7%, and net income margin 4.9% versus 5.1%.

• Basic EPS was ¥83.50 versus ¥82.79; diluted EPS was ¥83.29 versus ¥82.42.

• Comprehensive income was ¥3,283 million, down 44.0% YoY.

Outlook and guidance

• FY2027 guidance maintained: revenue ¥205,000 million, operating income ¥12,540 million, ordinary income ¥13,000 million, net income ¥8,377 million, and EPS ¥139.78.

• FY2027 revenue, operating income, ordinary income, and net income are projected at 106.0%, 126.1%, 123.0%, and 122.3% of FY2026 results, respectively.

• Mid-term targets: FY2031 revenue of ¥270 billion and ordinary income of ¥23 billion, versus FY2027 targets of ¥205 billion and ¥13 billion.