TOKYO BASE Co.,Ltd. FY2027 Q1 Earnings Report

クイックビュー

Executive Summary

Q1 of FY2026 delivered revenue of ¥61.3B (vs. prior year +¥11.9B +24.1%), Operating Income of ¥4.2B (vs. prior year +¥0.4B +10.1%), Ordinary Income of ¥4.8B (vs. prior year +¥2.3B +89.1%), and Net Income of ¥2.4B (vs. prior year +¥0.5B +23.7%), achieving growth in both top and bottom lines. Revenue continued double-digit growth, and improvement in non-operating items drove substantial gains at the Ordinary Income level; however, Operating Margin fell to 6.8%, down 0.8pt from 7.6% in the prior-year period. A high effective tax rate of 46.8% constrained Net Income growth. Total assets expanded to ¥166.1B (vs. prior year +¥17.5B), with Inventories at ¥46.9B (vs. prior year +¥10.3B +28.0%) and Accounts Payable at ¥22.6B (vs. prior year +¥10.1B +81.4%) rising materially, indicating concurrent growth investments and working capital expansion.

業績変動要因

【売上高】Revenue ¥61.3B (YoY +24.1%) delivered robust top-line growth. As a single-segment company (Apparel Retail Business), detailed segmental breakdown is not disclosed, but the front-loading of inventory (Inventories +28.0%) suggests a sales expansion strategy via new store openings and assortment strengthening. Gross Profit was ¥32.8B (YoY +¥5.9B +21.9%), with Gross Margin at 53.5%, down 1.0pt from 54.5% a year earlier. This suggests changes in product mix and pressure from markdowns.

【損益】SG&A was ¥28.7B (YoY +¥5.5B +23.8%), increasing roughly in line with revenue growth; SG&A ratio improved slightly to 46.8% from 47.0% a year ago (improvement of 0.2pt). As a result, Operating Income ¥4.2B (YoY +10.1%) benefited from revenue growth, but Operating Margin declined to 6.8% from 7.6% a year earlier (-0.8pt). On the non-operating side, Non-operating Income of ¥0.8B, including foreign exchange gains of ¥0.7B, significantly exceeded Non-operating Expenses of ¥0.2B (mainly interest expense), resulting in Ordinary Income ¥4.8B (YoY +89.1%), outperforming the operating-stage result. After recording Extraordinary Losses ¥0.4B (impairment loss ¥0.4B), Pre-tax Income was ¥4.4B. With Corporate Taxes and Others of ¥2.1B (effective tax rate 46.8%), Net Income was ¥2.4B (YoY +23.7%). While all profit stages improved from higher revenue, the decline in gross margin and the high tax rate limited net profitability expansion.

主要財務指標

【収益性】Operating Margin 6.8% decreased 0.8pt from 7.6% year-on-year, but Net Margin 3.8% remains 1.6pt above the industry median of 2.2%. Gross Margin 53.5% is down 1.0pt year-on-year but stays at a high level; SG&A ratio 46.8% improved only 0.2pt YoY, indicating limited operating leverage. 【キャッシュ品質】Operating Cash Flow (OCF) data is undisclosed, but the large increase in Inventories ¥46.9B (28.2% of Total Assets) and expansion of Accounts Payable ¥22.6B (YoY +81.4%) suggest partial financing of inventory buildup through trade payables. Inventory Days (annualized) are approximately 600 days (Inventories ¥46.9B ÷ Quarterly Cost of Goods Sold ¥28.5B × 90 days), indicating risk of long-term stock aging. 【投資効率】ROE 3.7% slightly improved from the prior-year period, but Total Asset Turnover at 0.37x/year (annualized) remains low, leaving room to improve capital efficiency. 【財務健全性】Equity Ratio 38.0% declined 4.0pt from 42.0% in the prior-year period, but current ratio 138.4% and quick ratio 81.7% indicate short-term liquidity is secured. Interest-bearing debt (Short-term Borrowings ¥21.0B + Long-term Borrowings ¥18.97B + Current Portion of Long-term Borrowings ¥21.57B) totals ¥61.54B, yielding a D/E ratio of 1.63x and Interest Coverage of 20.5x (Operating Income ¥4.2B ÷ Interest Expense ¥0.2B), indicating good capacity to service interest.

キャッシュフロー分析

OCF data is undisclosed, but balance sheet movements suggest cash trends: Cash and Deposits were ¥42.3B (YoY -¥1.7B), essentially flat. The ¥10.3B increase in Inventories was nearly offset by a ¥10.1B increase in Accounts Payable, indicating short-term working capital pressure was alleviated by using trade payables. Long-term Borrowings increased to ¥18.97B (YoY +¥4.89B +34.7%), implying funding for capital expenditure and store openings. Retained Earnings stood at ¥50.3B, slightly down from ¥50.5B a year earlier, and internal reserves are maintained due to the continued dividend suspension. Accounts Receivable increased to ¥17.7B (YoY +¥2.1B) in line with revenue growth and remains within a normal range, but together with extended inventory days there is a risk of lengthening the Cash Conversion Cycle (CCC). Property, Plant and Equipment increased to ¥28.0B (YoY +¥3.0B), with Buildings and Structures ¥21.1B (YoY +¥2.4B) indicating investments to expand the store network.

収益の質

Of Ordinary Income ¥4.8B, Operating Income ¥4.2B represents core business earnings, with Non-operating Net Income of +¥0.6B (Non-operating Income ¥0.8B - Non-operating Expenses ¥0.2B) adding on top. The primary driver of Non-operating Income was foreign exchange gains ¥0.7B, which include one-off benefits from yen weakness. Non-operating Expenses were mainly Interest Expense ¥0.2B; despite higher interest-bearing debt, interest burden remained limited. Extraordinary Losses ¥0.4B (impairment loss ¥0.4B) are one-off items from reassessment of fixed-asset profitability and should be excluded when evaluating core earnings. Pre-tax Income ¥4.4B faced heavy tax burden Corporate Taxes and Others ¥2.1B (effective tax rate 46.8%), and despite recognizing Deferred Tax Assets ¥1.6B, Net Margin was limited to 3.8%. Comprehensive Income ¥3.1B equals Net Income ¥2.4B plus Foreign Currency Translation Adjustment ¥0.7B, indicating exchange rate movements impacted multiple profit stages. Non-operating Income was 1.3% of sales, under 5%, so dependence on core operations remains high, but attention is warranted for exchange volatility and the frequency of impairment recognition.

業績予想・ガイダンス

Progress against Full Year guidance: Revenue 21.9% (¥61.3B ÷ ¥280.0B), Operating Income 16.6% (¥4.2B ÷ ¥25.0B), Ordinary Income 21.8% (¥4.8B ÷ ¥22.0B), Net Income 15.7% (¥2.4B ÷ ¥15.0B). Compared with a standard Q1 run-rate of 25%, Revenue is behind by -3.1pt, Operating Income by -8.4pt, and Net Income by -9.3pt. The lag in Operating Income and Net Income progress likely reflects lower-than-expected gross margin (possible deviation from plan assumptions), front-loaded SG&A investments, and high tax rate. The full-year target Operating Margin of 8.9% (¥25.0B ÷ ¥280.0B) contrasts with Q1 actual 6.8%; achieving the target depends on profitability improvement across the remaining three quarters (gross margin recovery via inventory drawdown and SG&A ratio reduction). Revenue progress is near standard and the assumption of back-half weighting remains, but profit-side improvements require normalization of inventory turnover and realization of tax effects. No forecast revisions have been made; company guidance remains unchanged.

株主還元

Both dividend forecast and actual dividend for the period are ¥0, with a Payout Ratio of 0%. Retained Earnings of ¥50.3B are being retained for reinvestment in growth (store openings, capital expenditure, digitalization), consistent with the policy to prioritize reinvestment. The no-dividend policy continues from the prior-year period, and shareholder returns are not expected in the near term. Future dividend decisions will depend on whether stable free cash flow can be secured through improvements in inventory turnover and cash generation.

リスク要因

1. Inventory Turnover Risk: Inventories ¥46.9B (YoY +28.0%) have increased at a pace exceeding revenue growth of +24.1%, and Inventory Days of approximately 600 days signal a flag for long-term stock aging. If sales plans fall short or product mix deteriorates, increased markdown pressure or recognition of valuation losses could further compress Gross Margin and Net Income.

2. Risk of Persistently High Tax Rate: Effective tax rate of 46.8% is materially above statutory rates, raising questions about the realizability of Deferred Tax Assets and the composition of taxable income. If tax burden remains elevated, improvement in Net Margin will be constrained and ROE improvement may be delayed.

3. Short-term Liquidity Risk: Short-term Borrowings ¥21.0B and Current Portion of Long-term Borrowings ¥21.57B total ¥42.57B maturing within one year, resulting in a high short-term debt ratio. Cash ¥42.3B provides some coverage, but delayed inventory liquidation that stalls cash generation could increase refinancing pressure and worsen borrowing terms.

業種ベンチマーク（参考・当社調べ）

収益性・リターン

Profitability substantially exceeds the industry median, reflecting the high gross margin, but the year-on-year decline in profit margins warrants attention.

成長性・資本効率

Revenue growth outperformed the industry median by 16.4pt, indicating successful expansion strategies, but the balance between front-loaded inventory buildup and gross margin decline will be a future focal point.

※出所: 当社集計

決算上の注目ポイント

1. Revenue grew strongly at +24.1% YoY, well above the industry median of +7.7%, but Operating Margin fell to 6.8% from 7.6% in the prior-year period, with contraction in Gross Margin (53.5%, -1.0pt) and insufficient SG&A ratio improvement limiting profitability expansion. Achieving the full-year Operating Margin target of 8.9% requires acceleration of inventory drawdown and SG&A efficiency improvements; execution of the back-half-weighted plan is key.

2. The buildup of Inventories ¥46.9B (YoY +28.0%) and expansion of Accounts Payable ¥22.6B (YoY +81.4%) clarify a structure of financing working capital growth via trade payables. Inventory Days of approximately 600 days point to long-term stock aging risk, and potential markdown pressure or valuation losses could affect cash generation and sustainability of profitability. With Short-term Borrowings ¥21.0B and Current Portion of Long-term Borrowings ¥21.57B totaling ¥42.57B due within one year, delayed normalization of inventory elevates refinancing risks.

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