Treasure Factory (3093) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended August 2024 rose 23.7% year-over-year to ¥19,614 million, with operating profit up 20.5% to ¥1,745 million and profit attributable to owners of parent up 22.8% to ¥1,144 million, driven by strong performance from both existing and new stores.

• Growth was fueled by strong demand in the reuse business, increased international visitors, and the addition of 11 directly-managed stores.

• E-commerce sales surged 31.6% year-over-year, with apparel, fashion, and hobby-related items seeing significant growth.

• Operating cash flows reached a record high, driven by improved inventory efficiency and quality of earnings.

• Expansion and relocation of distribution centers supported inventory for new stores, and base pay was raised by 7% to enhance recruitment.

Financial highlights

• Cumulative Q2 net sales: ¥19,614 million (+23.7% YoY); operating profit: ¥1,745 million (+20.5% YoY); net profit attributable to owners: ¥1,144 million (+22.8% YoY); EPS for the half-year was ¥48.86.

• Gross profit ratio decreased by 1.8 pts YoY to 60.2% due to higher sales of expensive items and changes in accounting.

• Operating cash flows for Q2: ¥1,256 million, up ¥1,414 million YoY; free cash flows increased by ¥1,200 million YoY.

• SGA to sales ratio improved by 1.6 pts YoY, with sales growth absorbing increased expenses.

• Total assets increased to ¥18,966 million, with net assets at ¥9,351 million and an equity capital ratio of 48.9%.

Outlook and guidance

• Full-year net sales forecast: ¥41,862 million (+21.5% YoY); operating profit: ¥4,041 million (+20.7% YoY); EPS: ¥116.23 (+21.1% YoY); profit attributable to owners: ¥2,723 million (+21.5% YoY).

• Dividend per share forecast: ¥34.00 (+21.4% YoY), with a payout ratio target of 30% or higher.

• Plan to open 30 stores in FY2025, with continued investments in new stores and overseas expansion.