Treasure Factory (3093) Q1 2025 earnings summary

Executive summary

• Consolidated net sales reached ¥10,320 million in Q1 FY2025, up 24.9% year-over-year, driven by strong inbound tourist demand, inflation, and growth in reuse items.

• Ordinary profit and EBITDA grew 30.9% and 32.5% year-over-year, with record-high Q1 profit and upward revisions to interim and full-year forecasts.

• Net profit attributable to owners of parent rose 37.0% year-over-year to ¥923 million.

• Six new stores opened in Q1, on track with the annual plan to open 30 stores, and group companies in the reuse business contributed to profit growth.

• Growth was supported by increased demand from international visitors, improved domestic economic conditions, and strong performance in the reuse business.

Financial highlights

• Net sales: ¥10.3 billion (+24% YOY); ordinary profit: ¥1.36 billion (+30% YOY); EBITDA: ¥1.5 billion (+32.5% YOY); EPS: ¥39.41 (+10.47 yen YOY).

• Gross profit ratio declined 1.8 pts YOY to 60.9% due to higher sales of expensive, high-cost items and changes in accounting for shipping costs.

• SG&A expenses rose 19% YOY, but the SG&A ratio improved by 2.4 pts to 47.8% as revenue growth outpaced expense increases.

• ROE reached 10.5% and ROIC 6.4% as of Q1 FY2025.

• Net profit attributable to owners of parent: ¥923 million (up 37.0% YOY).

Outlook and guidance

• Full-year net sales forecast revised upward to ¥41,862 million (+3.2% vs previous forecast), ordinary profit at ¥4,070 million (+9% vs previous forecast), and operating profit at ¥4,041 million.

• Annual dividend forecast raised to ¥34 per share (payout ratio 29.3%), with interim dividend up by ¥2.

• Gross profit ratio for FY2025 expected at 59.8% (down from 60.6% prior year), reflecting changes in cost allocation and business mix.

• Forecasts reflect continued strong sales and profit trends, with additional SG&A expected due to wage increases and expansion.