Yellow Hat (9882) Q3 2025 earnings summary

Executive summary

• Achieved record highs in net sales, operating profit, ordinary profit, and profit attributable to owners of parent for the nine months ended December 31, 2024, driven by strong sales of expendable auto parts, enhanced maintenance services, and increased travel demand.

• Existing store sales rose 5.7% year-over-year for Q3 cumulative, with in-store sales of tires, oil, and batteries growing steadily.

• Opened 7 new Yellow Hat stores and 4 Kakuyasu Tire Tread stores, while closing 1 of each.

• Retail Division net sales were 76,161 million yen (up 7.5%), Wholesale Division net sales were 35,643 million yen (up 0.4%).

• Total stores at period end: 885, including 749 Yellow Hat stores.

Financial highlights

• Net sales for Q3/FY24 were ¥119,149 million, up 4.9% year-over-year; gross profit was ¥51,646 million, up 6.6%.

• Operating profit rose 9.6% to ¥13,119 million; ordinary profit increased 7.7% to ¥14,202 million.

• Profit attributable to owners of parent was ¥9,727 million, up 8.4% year-over-year; basic EPS was 211.68 yen.

• Gross profit margin improved to 43.3% from 42.7% year-over-year.

• Selling, general and administrative expenses increased 5.6% due to higher personnel costs.

Outlook and guidance

• FY24 full-year net sales forecast at ¥150,000 million, up 2.3% year-over-year; operating profit forecast at ¥15,000 million (+3.6%), ordinary profit at ¥16,400 million (+2.7%), and profit attributable to owners of parent at ¥10,500 million (+2.3%).

• Dividend planned to increase for the 15th consecutive year, with annual dividend of ¥70 per share and a payout ratio target of 30% or higher.

• Medium-term plan targets FY2027 net sales of ¥180 billion, operating profit of ¥16.8 billion, and ROE of 10% or higher.