Yellow Hat (9882) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, rose 11.1% year-over-year to ¥132,353 million, driven by strong tire and expendable auto parts sales and the consolidation of Y International, Inc. (now Y'sroad Yellow Hat Inc.).

• Gross profit increased 11.4% year-over-year, while profit attributable to owners of parent rose 7.6% to ¥10,468 million, aided by a gain on sale of investment securities.

• Operating profit declined 3.1% year-over-year to ¥12,716 million due to higher SG&A expenses, despite increased gross profit.

• In-store sales of expendable auto parts like tires, oil, and batteries grew steadily, but winter product sales were sluggish due to warm weather.

• Store network expanded with 15 new openings and 5 closings in Q3 FY25, bringing the total to 759 stores as of December 31, 2025.

Financial highlights

• Net sales: ¥132,353 million (+11.1% YoY); gross profit: ¥57,516 million (+11.4% YoY); operating profit: ¥12,716 million (-3.1% YoY); ordinary profit: ¥13,949 million (-1.8% YoY); profit attributable to owners of parent: ¥10,468 million (+7.6% YoY).

• Basic EPS: ¥120.00 (+13.4% YoY, adjusted for stock split); comprehensive income grew 22.6% YoY to ¥12,746 million.

• Total assets: ¥202,183 million (+¥16,648 million from March 31, 2025); net assets: ¥123,540 million (+¥2,945 million), equity ratio 61.0%.

• Interest-bearing debt increased by ¥13,000 million to ¥48,000 million; long-term borrowings up ¥18,000 million, short-term borrowings down ¥5,000 million.

• SG&A expenses increased 16.3% YoY to ¥44,800 million, mainly from increased store and logistics costs.

Outlook and guidance

• FY25 full-year forecast: net sales ¥170,000 million (+10.3% YoY), operating profit ¥15,900 million (+2.9% YoY), profit attributable to owners of parent ¥11,400 million (+1.2% YoY), basic EPS forecast ¥128.59.

• Dividend forecast for FY25: ¥58 per share (post-stock split basis).

• Payout ratio target set at 45% for FY2025–FY2027, with a cumulative total shareholder return ratio of 100% or more.

• No changes to the previously announced full-year forecast.