Syuppin (3179) Q1 2026 earnings summary

Executive summary

• Net sales for the quarter were ¥12,176 million, down 11.2% year-over-year, with operating profit at 35.6% of the previous year's level due to weak Watch business and increased SGA expenses.

• Operating profit decreased 64.4% to ¥421 million, and net income dropped 66.5% to ¥282–283 million year-over-year.

• Online net sales grew 3.0% year-over-year, but duty-free and cross-border sales dropped sharply.

• The Watch business underperformed due to consumer hesitancy and inventory adjustments, while the Camera business saw strong online sales but overall decline.

Financial highlights

• Net sales for 1Q FY03/2026 were ¥12,176 million, 88.8% of the previous year and 97.1% of plan.

• Gross profit was ¥2,163 million (17.8% margin), down 20% year-over-year.

• Operating profit fell to ¥421 million (3.5% margin), 35.6% of the previous year.

• Ordinary profit for the quarter was ¥422 million, a 65.5% decline year-over-year.

• SGA expenses increased 14.5% year-over-year, mainly from higher promotions and personnel costs.

Outlook and guidance

• Full-year net sales target is ¥54,940 million, with 1Q progress at 22%.

• Full-year operating profit forecast is ¥1,512–3,417 million, with 1Q progress at 12%.

• Net income forecast for the full year is ¥1,028 million, down 24.7% year-over-year.

• Management aims to enhance profitability by focusing on growth businesses and discontinuing underperforming segments.

• Basic earnings per share for the full year are expected to be ¥47.18.