Syuppin (3179) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, were ¥24,424 million, down 7.9% year-over-year, with 2Q FY03/2026 net sales and operating profit at 89.5% and 58.4% of plan, prompting a downward revision of the full-year forecast.

• Operating profit decreased by 53.5% to ¥939 million, and net profit dropped 55.1% year-over-year to ¥613 million.

• Profitability declined at all levels due to lower sales and increased SGA expenses.

• The camera and watch businesses both experienced sales below expectations, with the camera segment impacted by a lack of new product launches and the watch segment by limited high-priced inventory procurement.

Financial highlights

• 2Q FY03/2026 net sales: ¥12,247 million (95.6% YoY), operating profit: ¥517 million (62.0% of plan), net income: ¥339 million (65.0% of plan).

• Ordinary profit for the period was ¥922 million, a 54.0% decrease year-over-year.

• Basic earnings per share fell to ¥28.33 from ¥63.03 in the prior year period.

• SGA expenses increased 13.8% YoY, driven by higher personnel and promotion costs.

• Gross profit margin remained stable at 18.7%.

• Online net sales for the camera business: ¥9,887 million (96% YoY); watch business: ¥2,150 million (99% YoY).

• Total assets as of September 30, 2025, were ¥17,354 million, down from ¥18,088 million as of March 31, 2025.

• Net assets decreased to ¥9,430 million from ¥10,168 million at the previous fiscal year-end.

Outlook and guidance

• Full-year earnings forecast revised downward due to underperformance in core businesses, with net sales forecast at ¥51,699 million (down 1.8% YoY) and operating profit projected to decline 26.8% to ¥2,486 million.

• Net profit forecast for the year is ¥1,637 million, down 19.0% year-over-year.

• Dividend payout ratio for FY03/2026 expected to exceed 60% due to profit decline, but dividend amount maintained, viewing the causes as short-term and improvable.

• Basic earnings per share for the full year is expected to be ¥76.47.

• Medium-term plan targets ROE of 30%+ and operating profit margin of 8%+.