Yellow Hat (9882) Q4 2026 earnings summary

Executive summary

• Net sales rose 11.2% year-over-year to ¥171.3 billion, driven by strong tire and expendable auto parts sales, and the consolidation of Y's Road Yellow Hat Inc.

• Profit attributable to owners of parent increased 6.3% year-over-year to ¥12.0 billion, reaching a record high, aided by a gain on sale of investment securities.

• Tire sales were strong, supported by pre-price-increase demand and robust travel activity; in-store sales increased 5.7% year-over-year.

• Store network expanded to 936 locations, with 20 new Yellow Hat stores and 7 new motorcycle business stores opened; 6 Yellow Hat and 2 other stores closed.

• Enhanced digital services, including a same-day oil change reservation feature, drove a 157% year-over-year increase in online reservations.

Financial highlights

• Net sales: ¥171.3 billion (+11.2% YoY); gross profit: ¥74.5 billion (+10.5% YoY); operating profit: ¥15.1 billion (-2.4% YoY); ordinary profit: ¥16.6 billion (-1.5% YoY); profit attributable to owners of parent: ¥12.0 billion (+6.3% YoY).

• Basic EPS: ¥137.86 (+11.6% YoY); annual dividend: ¥62 (+24% YoY), marking the 16th consecutive increase.

• Total assets: ¥206.8 billion (+¥20.9 billion YoY); net assets: ¥123.9 billion (+¥3.3 billion YoY); cash and cash equivalents at year-end totaled ¥39,714 million, up ¥8,478 million.

• SG&A expenses rose 14.3% year-over-year to ¥59,389 million, reflecting expansion and higher costs.

• Comprehensive income was ¥13,711 million, up 12.7% year-over-year.

Outlook and guidance

• FY2026 forecast: net sales ¥176.0 billion (+2.8% YoY), operating profit ¥16.0 billion (+6.0% YoY), profit attributable to owners of parent ¥12.2 billion (+1.9% YoY).

• Dividend forecast for FY2026: ¥68 per share.

• Strategic focus on expanding store network, EC integration, customer loyalty, mechanic development, and motorcycle business.

• Continued focus on digital service enhancement and shareholder returns with a payout ratio target of 45% and total shareholder return ratio of 100%+ over three years.

• Uncertainty remains due to global economic and geopolitical risks.