Ryohin Keikaku (7453) Q2 2026 earnings summary

Executive summary

• Operating revenue and all profit levels reached record highs in H1 FY26/8, driven by strong overseas performance and cost controls.

• Operating revenues for the six months ended February 28, 2026, rose 14.8% year-over-year to ¥438,549 million.

• Operating profit increased 24.8% to ¥45,045 million, and profit attributable to owners of parent grew 34.5% to ¥34,262 million year-over-year.

• Comprehensive income for the period surged 69.2% year-over-year to ¥53,336 million.

• Gross profit margins improved across all regions due to in-house production and reduced discounts.

Financial highlights

• H1 operating revenue rose 14.8% YoY to ¥438.5B; operating profit up 24.8% YoY to ¥45.0B; net income up 34.5% YoY to ¥34.2B.

• Basic earnings per share for the six months was ¥64.57, reflecting a 2-for-1 stock split.

• Net assets as of February 28, 2026, were ¥384,304 million, with a capital adequacy ratio of 59.6%.

• Gross profit margin improved by 1.3pp YoY to 52.4%; operating margin reached 10.3%.

• Extraordinary gains from sale of cross-shareholdings and FX gains contributed to net income.

Outlook and guidance

• Full-year revenue forecast revised up to ¥887.0B (+13.0% YoY); operating profit to ¥89.0B (+20.5% YoY); net income to ¥62.0B (+21.9% YoY).

• Basic earnings per share for the full year is forecast at ¥116.80.

• Dividend per share raised to ¥32, targeting a 30% payout ratio.

• Overseas business expected to drive growth; impact from Middle East situation considered limited for now.

• Store count projected to reach 1,489 by August 2026, with 77 net new stores YoY.