Yellow Hat (9882) Q1 2025 earnings summary

Executive summary

• Net sales reached a record high for Q1 at ¥34,672 million, up 1.1% year-over-year, driven by strong expendable auto parts sales and increased travel demand.

• Gross profit rose 2.5% year-over-year to ¥15,568 million, but operating profit declined 4.6% to ¥3,117 million due to higher store operation costs.

• Profit attributable to owners of parent decreased 6.5% year-over-year to ¥2,256 million.

• Retail sales grew 5.3% year-over-year, while wholesale sales declined 7.7%; three new stores opened and one closed in Q1.

Financial highlights

• Net sales: ¥34,672 million (+1.1% YoY); Gross profit: ¥15,568 million (+2.5% YoY).

• Operating profit: ¥3,117 million (-4.6% YoY); Ordinary profit: ¥3,463 million (-3.0% YoY).

• Profit attributable to owners of parent: ¥2,256 million (-6.5% YoY); Comprehensive income: ¥2,478 million (-19.5% YoY).

Outlook and guidance

• Full-year FY24 net sales forecast: ¥150,000 million (+2.3% YoY); operating profit: ¥15,000 million (+3.6% YoY).

• Profit attributable to owners of parent forecast at ¥10,500 million (+2.3% YoY); annual dividend planned at ¥70 per share, up for the 15th consecutive year.

• In-store sales expected to be flat YoY, with a 1% decline in 1H and 1% growth in 2H; no change to previously announced forecasts.