PAL GROUP Holdings CO (2726) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached a record ¥207.825bn, up 7.9% YoY; operating income rose 27.1% to ¥23.656bn and ordinary income rose 27.0% to ¥23.929bn.

• Net income attributable to owners of parent fell 7.8% to ¥11.848bn, mainly due to a ¥3.158bn founder retirement-award provision.

• A June server failure caused lost sales opportunities and manual order processing; improved gross margin and inventory management partly offset the impact.

Financial highlights

• Gross profit rose 9.4% to ¥116.256bn; gross margin increased 0.7 percentage points to 55.9%.

• Operating profit margin improved to 11.4% from 9.7%; SG&A ratio fell 0.9 points to 44.6%.

• Combined standalone results: revenue ¥182.632bn, up 6.1%; operating income ¥21.284bn, up 27.2%; net income ¥11.630bn, down 1.7%.

Outlook and guidance

• FY2026 consolidated guidance: revenue ¥231.0bn, up 11.2%; operating and ordinary income ¥26.4bn each; net income ¥16.85bn, up 42.2%.

• Guidance assumes contributions from acquired brands, recovery from prior-year server-related sales losses, stable foreign exchange and continued cost controls.

• FY2026 gross margin is forecast at 56.2%; existing-store sales at 105.0% of prior year, including 100.5% for retail and 113.2% for online.

• Planned FY2026 ending store count is 1,155; focus areas include efficient store operations, inventory control and big-data-led merchandising.