| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥4002.0B | ¥4811.0B | -16.8% |
| Operating Income / Operating Profit | ¥-174.4B | ¥140.0B | -17.4% |
| Ordinary Income | ¥-190.6B | ¥138.2B | -17.2% |
| Net Income / Net Profit | ¥-223.9B | ¥89.8B | -52.9% |
| ROE | -43.5% | 11.0% | - |
For the full year ending May 2026, Revenue was ¥4002.0B (YoY -¥808.9B -16.8%), Operating Loss was ¥174.4B (Operating Income ¥140.0B in the prior year), Ordinary Loss was ¥190.6B (Ordinary Income ¥138.2B in the prior year), and Net Loss attributable to owners of the parent was ¥223.9B (Net Income ¥89.8B in the prior year). A significant decline in sales in the core businesses and deterioration in profitability led to losses at every stage. Gross profit margin fell by 2.1pt to 22.3%, SG&A ratio rose by 5.2pt to 26.7%, and operating margin deteriorated by 7.3pt from 2.9% to -4.4%. Special losses of ¥108.0B (including impairment losses of ¥48.2B) further depressed net results, and ROE declined to -43.5%. Operating Cash Flow (OCF) was ¥-108.0B and Free Cash Flow was ¥-250.2B, indicating a substantial erosion of cash generation capability; funding was supplemented by an increase in short-term borrowings of ¥272.8B and sale-and-leaseback proceeds of ¥130.4B.
[Revenue] Revenue was ¥4002.0B, a substantial decline of ¥808.9B YoY (-16.8%). The core e-commerce business contracted in line to ¥3930.8B (composition ratio 98.3%, YoY -16.8%), with the ASKUL Business at ¥2829.5B (-21.0%) and the LOHACO Business at ¥280.8B (-23.7%), both posting double-digit declines. The Logistics Business declined further to ¥62.8B (-23.6%), and deterioration in market conditions and intensified competition spread across all segments. By geography, domestic sales account for over 90% of consolidated revenue, and overseas expansion is limited.
[Profitability] Cost of sales was ¥3108.9B (YoY -¥254.7B), and gross profit was ¥893.1B (YoY -¥224.4B -20.1%), with gross profit declining more than revenue. Gross margin fell 2.1pt to 22.3% from 24.4% the prior year, mainly due to a worse product mix and higher logistics costs. SG&A was ¥1067.6B (YoY +¥32.2B +3.1%), a slight increase, but SG&A ratio rose 5.2pt to 26.7% due to the revenue decline, revealing inadequate absorption of fixed costs. As a result, operating loss deteriorated by ¥314.4B to ¥174.4B (operating profit ¥140.0B in the prior year). Non-operating expenses increased, with interest expense rising to ¥7.1B (¥3.9B in the prior year), producing a non-operating net expense of ¥-16.2B and expanding ordinary loss to ¥190.6B (ordinary income ¥138.2B in the prior year). Special losses of ¥108.0B (impairment losses ¥48.2B, loss on retirement of fixed assets ¥7.8B, loss on valuation of investment securities ¥0.6B, etc.) were recorded, bringing loss before income taxes to ¥297.9B. Income taxes were a benefit of ¥-79.5B due to recognition of deferred tax assets, and after deducting non-controlling interests of ¥3.1B, Net Loss attributable to owners of the parent was ¥223.9B (Net Income ¥89.8B in the prior year), a deterioration of ¥313.7B. The company moved into significant net losses due to both revenue and profit declines and the booking of special losses.
The e-commerce business reported Revenue of ¥3930.8B (YoY -16.8%) and an Operating Loss of ¥162.7B (Operating Income ¥142.6B in the prior year; margin -4.1%), meaning the core business turned loss-making. The ASKUL Business recorded ¥2829.5B (-21.0%) and the LOHACO Business ¥280.8B (-23.7%), both with large revenue declines, and the ¥820.5B (+6.7%) increase in sales after eliminating intra-group transactions could not offset these decreases. Declines in gross margin and inability to absorb fixed SG&A rapidly deteriorated profitability. The Logistics Business posted Revenue of ¥62.8B (YoY -23.6%) and an Operating Loss of ¥12.0B (Operating Loss ¥3.0B in the prior year; margin -19.1%), with an expanded loss due to reduced delivery demand, lower per-delivery prices, and higher fixed cost burden. Other businesses (manufacturing, etc.) had Revenue of ¥19.8B (YoY -2.4%) and Operating Income of ¥0.1B (Operating Income ¥1.0B in the prior year; margin 0.5%), maintaining a small profit. Consolidated operating loss after intersegment adjustments was ¥174.4B, with the e-commerce business accounting for 93% of the total loss.
[Profitability] Operating margin was -4.4% (prior year 2.9%), Net profit margin was -5.6% (prior year 1.9%), and ROE fell to -43.5% (prior year 11.6%). Gross margin fell to 22.3% (prior year 24.4%) (-2.1pt), and SG&A ratio rose to 26.7% (prior year 21.5%) (+5.2pt). Operating leverage reversed, and fixed-cost absorption capacity deteriorated markedly in the revenue decline. [Cash Quality] OCF was ¥-108.0B (prior year ¥129.1B), turning negative, and OCF/Revenue ratio was -2.7% (prior year 2.7%). EBITDA turned negative to ¥-108.5B; while OCF/EBITDA ratio is 1.00x in a formal sense, EBITDA itself being negative indicates the fundamental weakness. Depreciation and amortization was ¥66.0B while OCF was substantially negative, signaling severely impaired cash generation. [Investment Efficiency] Total asset turnover declined to 1.74x (prior year 2.11x), showing worsening asset efficiency. Capital expenditure was ¥82.5B, exceeding depreciation (¥66.0B) at 1.25x, indicating continued investment, but investment under negative OCF increases dependence on external funding. [Financial Soundness] Equity Ratio was 22.4% (prior year 35.7%), down 13.3pt, and D/E ratio rose to 3.47x (prior year 1.75x). Interest-bearing debt increased to ¥406.4B (short-term borrowings ¥272.8B, long-term borrowings ¥133.6B), with short-term borrowings rising sharply from ¥3.8B in the prior year. Interest coverage was -24.4x (prior year 35.6x), indicating substantially weakened debt tolerance. Current ratio was 113.8% (prior year 140.0%) and quick ratio was 95.3% (prior year 118.6%), reducing short-term liquidity cushions.
OCF was ¥-108.0B (prior year ¥129.1B), turning negative, and OCF/Net Income ratio was 0.48x, indicating significant cash outflows even against net losses. In working capital changes, a decrease in trade receivables of ¥53.5B contributed positively, while inventory increase of ¥15.1B and decrease in accounts payable of ¥42.1B pressured cash. Operating cash flow subtotal (before working capital changes) was ¥-69.2B; after adding non-cash expenses such as depreciation ¥66.0B and impairment losses ¥48.2B, OCF remained negative, underscoring weak core cash generation. Investing cash flow was ¥-142.2B (prior year ¥-165.8B), with capital expenditure ¥82.5B, long-term loans ¥0.7B, and acquisition of investment securities ¥3.9B among the main outflows. Considering sale-and-leaseback proceeds of ¥130.4B (financing cash flow), the effective burden of capital expenditure remained large. Free Cash Flow was ¥-250.2B (prior year ¥-36.7B), a substantial negative, and the funding shortfall was covered by financing activities. Financing cash flow showed a net inflow of ¥252.2B (prior year ¥-96.5B), driven by a net increase in short-term borrowings of ¥269.0B, borrowings of long-term debt ¥40.0B, and sale-and-leaseback ¥130.4B; uses included repayment of long-term borrowings ¥61.0B, lease liability repayments ¥44.0B, share buybacks ¥64.5B, and dividend payments ¥17.8B. Cash and deposits at year-end were ¥493.3B, up ¥9.1B from ¥484.2B in the prior year, but this increase was funded externally rather than from internal reserves. As a sign of working capital management, the decrease in accounts payable contributed to cash outflows, suggesting possible liability compression through year-end adjustments.
Recurring earnings are centered on the operating results of the e-commerce and logistics businesses, and an operating-stage loss of ¥174.4B was recorded. One-time items included special losses of ¥108.0B (impairment losses ¥48.2B, loss on retirement of fixed assets ¥7.8B, loss on valuation of investment securities ¥0.6B, etc.), which dragged down net results. Of the ¥48.2B impairment losses, ¥35.2B related to the e-commerce business, including goodwill impairment, reflecting structural deterioration in the revenue base. Non-operating income was ¥4.6B (interest income ¥1.7B, other ¥1.5B), and non-operating expenses were ¥20.8B (interest expense ¥7.1B, other ¥13.7B), with increased interest burden pressuring ordinary income. Comprehensive income was ¥-216.3B; relative to the Net Loss of ¥-223.9B, deferred hedge gains/losses were ¥0.0B and adjustments related to retirement benefits were ¥2.1B, so divergences are small and qualitative differences between comprehensive income and net income are limited. As long as operating-stage losses persist, resilience to volatility in one-off items is low, and improvement in profitability in future periods is a prerequisite for improving quality of earnings.
For the full year ending May 2027, the company forecasts Revenue of ¥4900.0B (YoY +22.4%), Operating Income ¥70.0B, Ordinary Income ¥63.0B, Net Income attributable to owners of the parent ¥40.0B, and EPS ¥44.68. The company plans an improvement of ¥244.4B from this year’s operating loss of ¥174.4B to operating profit ¥70.0B, assuming recovery in gross margin (correction of procurement terms, price revisions, product mix improvement), logistics cost efficiencies (higher delivery density, network optimization, review of outsourcing terms), and fixed-cost reductions (optimization of labor costs, rent, and IT maintenance costs). The 22.4% revenue increase assumes demand recovery and expansion of the customer base, but achieving a V-shaped recovery from this year’s large revenue decline is a high hurdle. The company plans a year-end dividend of ¥10, maintaining the same level as this year. To meet guidance, turning the e-commerce business profitable and restoring profitability in the logistics business are essential, and ongoing monitoring of quarterly gross margin trends, declines in SG&A ratio, and normalization of working capital is required.
A year-end dividend of ¥10 was paid, making the full-year dividend ¥10 (a decrease of ¥9 from ¥19 in the prior year). Total dividend payments of ¥17.8B against a Net Loss attributable to owners of the parent of ¥223.9B are arithmetically negative for payout ratio and have limited reference value. Dividend coverage relative to Free Cash Flow of ¥-250.2B is -27.87x, indicating dividends were not covered by internal funds. Additionally, share repurchases of ¥64.5B were conducted, and combined with dividends of ¥17.8B, total shareholder returns amounted to ¥82.3B. While Total Return Ratio is incalculable under loss conditions, executing total returns of ¥82.3B amid large negative Free Cash Flow indicates reliance on external funding—an increase in short-term borrowings of ¥272.8B and sale-and-leaseback proceeds of ¥130.4B—to maintain shareholder returns. Next year’s guidance assumes Net Income of ¥40.0B and dividends of ¥10; if profitability recovers, payout ratio would be approximately 22.4%. However, if operating profitability is not achieved, the sustainability of maintaining dividends is questionable.
Profitability deterioration and continued loss risk: The reverse margin dynamics—gross margin 22.3% (YoY -2.1pt) and SG&A ratio 26.7% (YoY +5.2pt)—led to an operating loss of ¥174.4B. High business concentration in e-commerce (composition ratio 98.3%) means that under intensified price competition, pressure for free shipping, and rising logistics costs, delays in gross margin recovery and improvement in fixed-cost absorption could prolong loss-making operations and further damage the financial base. Achieving next year’s guidance requires 2–3pt gross margin improvement and 5pt reduction in SG&A ratio, but the lack of a track record in execution is a concern.
Liquidity and refinancing risk: Short-term borrowings surged to ¥272.8B, with short-term liabilities concentrated at 67% maturity. D/E ratio is 3.47x and interest coverage is -24.4x, indicating fragile debt tolerance; if negative OCF and FCF of ¥-250.2B persist, refinancing conditions may worsen, additional collateral or covenant breaches may be required. Cash and deposits of ¥493.3B provide some buffer, but continued operating cash deficits could quickly erode liquidity, and in a rising interest rate environment, funding costs could increase further.
Working capital management and inventory risk: Inventory increased to ¥244.0B (prior year ¥229.1B), and inventory turnover declined due to lower sales. On an OCF basis, inventory increase of ¥15.1B and decrease in accounts payable of ¥42.1B together caused ¥57.2B of cash outflow, and deteriorating working capital efficiency is pressuring funding. Risks include valuation losses on excess inventory or increased disposal costs if demand forecasting worsens or product mix adjustments lag, which could further harm cash flows.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | -4.4% | 4.6% (1.7%–8.2%) | -9.0pt |
| Net Profit Margin | -5.6% | 3.3% (0.9%–5.8%) | -8.9pt |
Profitability is significantly below the industry median, and with operating and net margins turning negative, the company ranks near the bottom within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -16.8% | 4.3% (2.2%–13.0%) | -21.1pt |
Revenue underperformed the industry median of +4.3% by 21.1pt, showing a marked downtrend within the sector.
※Source: Company compilation
Recovery of gross margin and fixed-cost absorption is the top priority: The reverse spread of gross margin 22.3% (YoY -2.1pt) and SG&A ratio 26.7% (YoY +5.2pt) produced an operating loss of ¥174.4B. Next year’s guidance assumes Operating Income of ¥70.0B, a ¥244.4B improvement, but achieving this requires 2–3pt gross margin improvement (price revisions, correction of procurement terms, product mix optimization) and a 5pt reduction in SG&A ratio (optimization of labor costs, logistics, and rent). Quarterly monitoring of gross margin trends, progress in fixed-cost reductions in SG&A, and the pace of e-commerce profitability turnaround is necessary.
Increased reliance on external funding and refinancing risk: OCF ¥-108.0B and FCF ¥-250.2B funding shortfall was covered by short-term borrowings ¥272.8B (¥3.8B in prior year) and sale-and-leaseback ¥130.4B, sharply increasing dependence on external financing. With D/E ratio 3.47x and interest coverage -24.4x, debt tolerance is weak, and short-term liabilities concentrated at 67% raise refinancing risk. The timing of OCF turning positive, refinancing terms for short-term borrowings, and interest cost trends will be key to financial stability next year.
This report was automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in specific securities. Industry benchmarks are reference information compiled by the company based on publicly disclosed financial statements. Investment decisions are your responsibility; please consult a professional advisor as needed.