| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥315.7B | ¥277.4B | +13.8% |
| Operating Income / Operating Profit | ¥61.5B | ¥50.4B | +22.0% |
| Ordinary Income | ¥60.1B | ¥50.7B | +18.4% |
| Net Income / Net Profit | ¥38.2B | ¥32.3B | +18.3% |
| ROE | 16.0% | 16.0% | - |
The cumulative results for Q3 of the fiscal year ending August 2026 showed Revenue ¥315.7B (YoY +¥38.3B +13.8%), Operating Income ¥61.5B (YoY +¥11.1B +22.0%), Ordinary Income ¥60.1B (YoY +¥9.4B +18.4%), and Net Income ¥38.2B (YoY +¥5.9B +18.3%). These results reflect double-digit top-line growth and profit growth that outpaced revenue expansion. The operating margin improved to 19.5%, up +1.3pt year-on-year, driven by improved cost efficiency. Progress against the full year plan (Revenue ¥423.0B, Operating Income ¥77.0B, Ordinary Income ¥75.7B, Net Income ¥48.5B) stands at Revenue 74.7%, Operating Income 79.9%, Ordinary Income 79.4%, and Net Income 78.8%, aligning with the typical benchmark (~75%) and progressing smoothly.
[Revenue] Revenue was ¥315.7B, up +13.8% YoY. The business consists of a single segment, the Curves Business, and no segment-level breakdown is disclosed. Revenue growth is estimated to have been driven by network expansion of stores and same-store sales increases. Gross margin was 42.7%, down 0.4pt from 43.1% a year earlier, but gross profit increased to ¥134.9B (prior ¥119.6B, +12.8%) due to the larger absolute revenue base, achieving double-digit growth in gross profit.
[Profitability] SG&A expenses were restrained at ¥73.4B, up +6.1% YoY, resulting in an SG&A ratio of 23.3%, improved by 1.6pt from 24.9% a year earlier. With SG&A growth contained relative to revenue growth, operating leverage took effect. Operating Income was ¥61.5B (+22.0%), with an operating margin of 19.5%, up 1.3pt from 18.2% a year earlier, indicating improved core profitability. Non-operating items comprised non-operating income ¥0.2B (interest income ¥0.1B, foreign exchange gains ¥0.7B, etc.) and non-operating expenses ¥1.7B (interest expense ¥0.4B, foreign exchange losses ¥1.2B, etc.), leaving limited impact at the non-operating stage. Ordinary Income was ¥60.1B (+18.4%). Extraordinary items included only impairment loss on fixed assets of ¥0.0B, with negligible effect; profit before tax was ¥60.0B (+18.6%). Corporate taxes were ¥21.8B (effective tax rate 36.4%), up ¥3.5B YoY, and after-tax Net Income was ¥38.2B (+18.3%), with a net margin of 12.1%, up 0.5pt from 11.6% a year earlier. Other comprehensive income was ¥55.4B, significantly exceeding Net Income due to an accumulated increase in foreign currency translation adjustment of ¥17.2B. In conclusion, performance shows high-quality growth with both revenue and profit increases accompanied by an improved operating margin.
[Profitability] Operating margin of 19.5% improved by +1.3pt YoY and remains at a high level. Net margin of 12.1% rose +0.5pt, holding firm despite higher tax burden (effective tax rate 36.4%). ROE of 16.0% is strong relative to historical performance, indicating high capital efficiency. [Cash Quality] Days Sales Outstanding (DSO) is 73 days, longer than standard and indicating room for collection cycle improvement. Inventory days are 34 days, an appropriate level, reflecting good inventory management. [Investment Efficiency] Intangible assets are ¥209.8B, representing 50.4% of total assets, centered on trademark rights of ¥180.6B. Tangible fixed assets are light at ¥6.4B, supporting an asset-efficient business model. [Financial Soundness] Equity Ratio is 57.5%, up +6.1pt from 51.4% a year earlier, indicating a solid financial base. Current ratio is 164.2% and quick ratio is 149.7%, showing ample short-term liquidity. D/E ratio is 0.74x, Debt/Capital is 7.1%, and interest coverage is 143x, reflecting very low reliance on interest-bearing debt and high financial capacity. Long-term borrowings are ¥18.4B, down 44.8% from ¥33.3B a year earlier, indicating reduced financial risk through repayments.
Although direct disclosure of the cash flow statement is not provided, funding trends are analyzed from the balance sheet movements. Cash and deposits were ¥94.3B, up ¥7.3B from ¥87.0B a year earlier, improving liquidity. Retained earnings were ¥174.7B, up ¥20.4B from ¥154.3B the prior year, strengthening equity through internal retention. A 44.8% reduction in long-term borrowings (-¥14.9B) indicates compression of interest-bearing debt and suggests cash returns from financing activities contributed to improved cash management. Accounts receivable were ¥63.0B, up ¥7.1B from ¥55.9B a year earlier; although the increase in receivables (+12.7%) slightly lagged revenue growth (+13.8%), the DSO of 73 days exceeds the standard (60 days), leaving room to improve working capital efficiency. Inventory was ¥16.6B, up ¥2.9B from ¥13.7B, with an inventory days figure of 34 days which is within a healthy range. Given the recorded Operating Income of ¥61.5B and the increase in retained earnings, cash generation from operations is inferred to be robust.
The gap between Ordinary Income ¥60.1B and Net Income ¥38.2B is mainly due to corporate taxes of ¥21.8B, and the progression from operating profit to final profit levels is stable. Non-operating items amount to a net decrease of ¥1.4B relative to Operating Income ¥61.5B (Ordinary Income ¥60.1B); major non-operating expenses were foreign exchange losses ¥1.2B and interest expense ¥0.4B, indicating temporary/structural impacts are minor. Extraordinary items only included impairment loss on fixed assets ¥0.0B, so there is virtually no distortion from one-off items. Other comprehensive income ¥55.4B exceeds Net Income ¥38.2B by ¥17.2B, entirely attributable to foreign currency translation adjustment of ¥17.2B, a non-cash item reflecting valuation of overseas operations. There were no valuation differences on securities recorded, so there is no observed deterioration in earnings quality from unrealized gains/losses. The increase in accounts receivable is broadly consistent with revenue growth, supporting the appropriateness of revenue recognition. Given the improvement in operating margin and progress in cost efficiency, the quality of earnings is assessed as recurring and highly sustainable.
The full-year forecast was maintained at Revenue ¥423.0B (YoY +12.6%), Operating Income ¥77.0B (YoY +21.4%), Ordinary Income ¥75.7B (YoY +16.8%), and Net Income ¥48.5B (EPS ¥52.67). Progress through Q3 cumulative is Revenue 74.7%, Operating Income 79.9%, Ordinary Income 79.4%, and Net Income 78.8%, aligning with the typical ~75% benchmark and on track. The operating income progress rate is slightly high, indicating relatively greater cushion toward achieving full-year targets. The implied Q4 standalone assumptions are Revenue ¥107.3B, Operating Income ¥15.5B, Ordinary Income ¥15.6B, and Net Income ¥10.3B; if the Q3 cumulative profit trend continues, the full-year plan is assessed as achievable.
An interim dividend of ¥10 per share was paid, and the full-year dividend forecast is ¥20 (interim ¥10, year-end ¥10). The year-end dividend consists of ordinary dividend ¥10 and commemorative dividend ¥10. The payout ratio for the interim dividend relative to basic EPS ¥41.48 is 24.1%, and the full-year payout ratio relative to forecast EPS ¥52.67 is 38.0%, remaining at a conservative level. The total dividend amount relative to Net Income ¥38.2B is estimated at approximately ¥18.4B (outstanding shares 93.86 million - treasury shares 1.76 million), indicating ample coverage from earnings. Considering cash and deposits ¥94.3B and operating cash-generating capacity, dividend sustainability is high. Dividends are being paid alongside reduction of interest-bearing debt (long-term borrowings -44.8%), maintaining an appropriate balance between shareholder returns and financial soundness.
Intangible asset concentration risk: Intangible assets of ¥209.8B account for 50.4% of total assets, with trademark rights ¥180.6B comprising the majority. Impairment of brand value, obsolescence, or increased amortization burden could depress profitability and equity. Monitoring for impairment indicators is important.
Accounts receivable collection risk: Accounts receivable of ¥63.0B and DSO of 73 days exceed the standard (60 days), posing potential increases in working capital burden and credit risk from lengthening collection cycles. While receivable growth (+12.7%) is slightly restrained versus revenue growth (+13.8%), there is substantial room for absolute improvement.
Tax burden volatility risk: An effective tax rate of 36.4% is relatively high, and corporate taxes ¥21.8B weigh on Net Income. An increase in deferred tax liabilities of ¥37.9B also exists, which could lead to higher future tax cash outflows or variability in tax effects, impacting earnings quality.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 19.5% | 8.2% (3.6%–18.0%) | +11.3pt |
| Net Margin | 12.1% | 6.0% (2.2%–12.7%) | +6.1pt |
The company’s operating margin and net margin substantially exceed industry medians, placing its profitability among the top in the sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 13.8% | 10.4% (-1.1%–19.5%) | +3.4pt |
Revenue growth outperforms the industry median, indicating superior growth.
※Source: Company aggregation
Achieved both double-digit revenue growth and an operating margin of 19.5% (YoY +1.3pt); progress versus the full-year plan (Operating Income 79.9%) exceeds the standard benchmark. Cost-efficiency gains are becoming entrenched, supporting sustained high profitability.
Noticeable improvement in financial soundness with Equity Ratio 57.5% (+6.1pt), long-term borrowings down 44.8%, and D/E ratio 0.74x, establishing low dependency on debt. Payout ratio 38.0% is conservative, supporting dividend sustainability.
High concentration of intangible assets at 50.4% of total assets and DSO of 73 days are medium-term quality risk factors. Preserving brand value and improving receivables management are essential to sustain margins and cash generation.
This report is an AI-generated financial analysis document created by analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information aggregated by our firm based on public financial statements. Investment decisions are your own responsibility; consult a professional advisor as needed.