PAL GROUP Holdings CO (2726) Q4 2025 earnings summary

Executive summary

• Net sales rose 7.9% year-over-year to ¥207,825 million, with operating profit up 27.1% to ¥23,656 million and ordinary profit up 27.0% to ¥23,929 million.

• Profit attributable to owners of parent declined 7.8% year-over-year to ¥11,848 million, mainly due to a special retirement payment of ¥3,158 million posted as extraordinary losses.

• The company faced a server failure in June, resulting in lost sales opportunities and manual order processing, but improved gross profit ratio and inventory management offset some impact.

• Brand strength of 3COINS increased, leading to more store openings and improved conditions for new stores.

Financial highlights

• Gross profit increased to ¥116,256 million from ¥106,283 million year-over-year.

• Operating profit margin improved to 11.4% from 9.7% year-over-year.

• Cash and cash equivalents at year-end rose to ¥85,715 million, up ¥18,487 million from the previous year.

• Equity ratio decreased to 47.9% from 50.0% year-over-year.

Outlook and guidance

• For fiscal year ending February 28, 2026, net sales are forecast to rise 11.2% to ¥231,000 million, operating profit to increase 11.6% to ¥26,400 million, and profit attributable to owners of parent to jump 42.2% to ¥16,850 million.

• Growth expected from new brands acquired via M&A and recovery from prior year’s server-related sales loss.

• Continued focus on efficient store operations, inventory control, and leveraging big data for merchandising.