GLOBERIDE,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥65.57B
• Operating Income: ¥4.89B
• Net Income: ¥3.34B
• EPS: ¥170.85

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Globeride (TSE:7990) delivered stable topline performance in FY2026 Q2 with revenue of ¥65.57bn, up 0.5% YoY, indicating resilient demand despite a softer operating profit trajectory. Gross profit was ¥24.76bn, translating to a solid gross margin of 37.8%, which supports the company’s ability to add value through branding, product mix, and pricing discipline. Operating income declined 2.4% YoY to ¥4.89bn, implying slight margin compression and negative operating leverage against a flat revenue backdrop. Ordinary income of ¥5.09bn exceeded operating income by ¥0.20bn, suggesting a modest net non-operating gain that more than offset interest expense of ¥0.26bn. Net income rose 18.1% YoY to ¥3.93bn with a reported effective tax rate of 0.0%, indicating tax effects (e.g., loss carryforwards or timing effects) that boosted bottom-line growth relative to operating trends. DuPont ROE stands at 6.28%, driven by a 5.99% net margin, 0.578x asset turnover, and 1.81x financial leverage—an overall moderate return profile supported by healthy profitability and prudent leverage. The operating margin is approximately 7.5%, reflecting reasonable operating efficiency but also sensitivity to volume and cost mix. Liquidity appears strong with a current ratio of 251.5% and a quick ratio of 137.7%, providing a sizable buffer against near-term obligations. Capital structure looks conservative-to-moderate with total liabilities-to-equity of 0.84x and interest coverage around 19x, indicating ample capacity to service debt. Inventory of ¥33.13bn represents about 45% of current assets; with cost of sales of ¥40.49bn for the half-year, implied inventory turnover is modest and warrants monitoring for working capital efficiency. The improvement in net income versus operating income suggests that non-operating items and/or a low tax burden contributed to earnings quality this quarter. Cash flow data, depreciation and amortization, taxes, equity ratio, DPS, and share count are not disclosed in the provided XBRL, limiting assessment of cash conversion, capital intensity, and per-share equity. Despite these limitations, the available figures point to a business with stable gross profitability, modest operating headwinds, and sound balance sheet resilience. The flat revenue with slightly softer operating profit signals limited operating leverage in the current environment, putting emphasis on cost control and mix upgrades. FX dynamics may have contributed to ordinary income resilience given interest expense and the small positive non-operating balance, but details are not disclosed. Overall, the quarter shows steady fundamentals with a notable gap between operating and net income trends due to tax and non-operating effects, making future disclosure on cash flows and taxes critical for validating earnings quality.

Profitability Analysis

ROE_decomposition: ROE 6.28% = Net margin 5.99% × Asset turnover 0.578 × Financial leverage 1.81. Net margin is respectable for the category; asset efficiency is moderate; leverage is prudent, jointly producing mid-single-digit ROE. margin_quality: Gross margin 37.8% indicates strong value-add and brand/product strength. Operating margin ~7.5% (¥4.893bn/¥65.573bn) softened vs. revenue growth (+0.5% YoY) and operating income (-2.4% YoY), implying mix or cost pressure. Ordinary margin 7.8% (¥5.094bn/¥65.573bn) benefited from net non-operating gains (¥0.20bn net, implying non-operating income roughly ¥0.46bn vs. interest expense ¥0.26bn). Net margin 5.99% was elevated by a 0% reported tax rate. operating_leverage: With revenue up 0.5% and operating income down 2.4%, incremental margins were negative, suggesting limited operating leverage this quarter. Cost absorption and/or SG&A growth likely outpaced sales growth, compressing operating margin slightly. Sustained margin recovery will require either stronger top-line growth or tighter cost control.

Growth Assessment

revenue_sustainability: Top-line growth of +0.5% YoY indicates stable demand but limited momentum; sustainability will hinge on product refresh cycles, channel performance, and international mix. profit_quality: Operating profit declined modestly despite flat sales, pointing to cost pressure or less favorable mix. Net profit growth (+18.1% YoY) outpaced operating trends due to non-operating and tax effects (effective tax rate 0%), which are not necessarily recurring. Interest coverage remains strong (~19x), but profit quality would be better evidenced by OCF, which is not disclosed. outlook: Short-term outlook appears balanced: solid gross margin supports earnings resilience, but negative operating leverage is a headwind absent stronger growth. FX and non-operating items provided a modest tailwind this quarter; sustainability depends on currency and financial income/expenses. Monitoring inventory normalization and seasonal sell-through will be critical for 2H.

Financial Health

liquidity: Current ratio 251.5% and quick ratio 137.7% (cash/unreported) indicate robust near-term liquidity. Working capital is ¥44.12bn. solvency: Total liabilities-to-equity is 0.84x, pointing to moderate leverage. Interest coverage of ~19x (operating income/interest expense) suggests a comfortable buffer against rate or earnings shocks. capital_structure: Assets ¥113.38bn, equity ¥62.54bn, implying financial leverage of 1.81x. The reported equity ratio (0.0%) is undisclosed in XBRL; based on totals, implied equity ratio would be roughly 55%, indicating a solid equity base.

Cash Flow Quality

earnings_quality: OCF not disclosed; OCF/NI ratio shows as 0.00 by lack of data, not true zero. This limits validation of accrual quality and cash conversion. The 0% effective tax rate and non-operating gains contributed to net income, which may not fully reflect core cash-generating power. FCF_analysis: Investing and financing cash flows are undisclosed; FCF cannot be computed. D&A is also undisclosed, preventing EBITDA/FCF normalization or capex intensity assessment. working_capital: Inventories at ¥33.13bn (≈45% of current assets) are sizable. Using period-end inventory, half-year turnover approximates 1.22x (COGS ¥40.49bn / inventories ¥33.13bn); this implies moderate capital tie-up and highlights the importance of sell-through in 2H. Receivables and payables detail are not disclosed, limiting a full cash cycle analysis.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are shown as 0.00 due to non-disclosure; EPS is ¥170.85. Without DPS and OCF data, headline payout metrics cannot be assessed. FCF_coverage: FCF is undisclosed; therefore, dividend coverage by FCF cannot be evaluated. Balance sheet strength (implied equity ratio ~55%, leverage 0.84x liabilities/equity) provides capacity, but cash flow evidence is needed. policy_outlook: No dividend policy information is provided. Future distributions will depend on visibility into cash generation, capex needs, and inventory normalization.

Risk Assessment

Business Risks:

• Negative operating leverage amid flat sales could compress margins if costs rise.
• Inventory concentration (¥33.13bn) raises sell-through and obsolescence risks if demand softens.
• Product/mix dependence on discretionary spending exposes earnings to consumer sentiment.
• FX volatility can affect overseas revenue translation and non-operating income.
• Seasonality risk in sporting goods/fishing categories could amplify 2H variability.

Financial Risks:

• Earnings quality sensitivity due to 0% reported tax rate and reliance on non-operating contributions this quarter.
• Interest rate risk, albeit mitigated by strong interest coverage (~19x).
• Working capital tie-up could pressure cash flows if inventory builds persist.
• Data gaps in cash flows and D&A obscure leverage through-the-cycle and capex needs.

Key Concerns:

• Operating income declined despite revenue growth, indicating cost/mix pressure.
• Net income uplift driven by tax/non-operating effects may not be durable.
• Lack of OCF/FCF disclosure prevents verification of cash conversion.

Investment Implications

Key Takeaways:

• Stable topline (+0.5% YoY) with slight operating margin compression (operating income -2.4% YoY).
• ROE of 6.28% underpinned by solid net margin and prudent leverage.
• Strong liquidity (current ratio 2.5x; quick ratio 1.38x) and moderate leverage (liabilities/equity 0.84x).
• Net income growth (+18.1% YoY) buoyed by non-operating/tax effects; core operating trend softer.
• Inventory levels are high relative to current assets, making 2H sell-through critical.

Metrics to Watch:

• Operating margin trajectory and SG&A ratio in 2H.
• OCF/NI and FCF once disclosed, to validate earnings quality.
• Inventory turnover and weeks-on-hand; progress in working capital release.
• FX impacts on ordinary income and gross margin.
• Interest coverage and any changes in funding costs.

Relative Positioning: Within Japanese leisure/consumer durable peers, Globeride exhibits solid gross profitability and conservative-to-moderate leverage, but near-term operating leverage is subdued; maintaining margin discipline and improving cash conversion will be key to sustaining ROE.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis