Yellow Hat (9882) Q4 2025 earnings summary

Executive summary

• Net sales rose 5.1% year-over-year to ¥154.1 billion, with all major profit metrics reaching record highs, driven by strong expendable auto parts sales and expanded maintenance services.

• In-store sales of expendable auto parts, especially tires, oil, and batteries, grew steadily; tire sales up 9.9% and battery sales up 10.4%.

• Acquired Y International, Inc. (Y's Road sports bicycle chain) as a subsidiary, expanding into the sports bicycle segment.

• Opened 14 Yellow Hat stores and 7 motorcycle business stores, while closing 3 Yellow Hat and 1 motorcycle store.

Financial highlights

• Gross profit increased 7.3% year-over-year to ¥67.4 billion; operating profit up 6.7% to ¥15.5 billion; ordinary profit up 5.5% to ¥16.8 billion; profit attributable to owners of parent up 9.8% to ¥11.26 billion.

• Basic EPS was ¥123.55, up 11.3% year-over-year (pre-stock split basis); dividend increased by ¥34 to ¥100 per share.

• Total assets increased to ¥185.5 billion; net assets rose to ¥120.6 billion.

• Extraordinary income included gains on sales of non-current assets and investment securities.

Outlook and guidance

• FY25 net sales forecast at ¥170.0 billion, up 10.3% year-over-year; operating profit projected at ¥15.9 billion; profit attributable to owners of parent forecast at ¥11.4 billion; basic EPS expected at ¥128.59.

• Dividend forecast at ¥58 per share, reflecting the impact of the stock split.

• Plan to open 22 Yellow Hat stores and 8 motorcycle business stores in FY25.

• Focus on expanding store network, strengthening EC and in-store integration, developing mechanics, and growing the motorcycle business.