| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1890.1B | ¥1957.1B | -3.4% |
| Operating Income / Operating Profit | ¥105.9B | ¥125.7B | -15.8% |
| Ordinary Income | ¥109.2B | ¥126.3B | -13.5% |
| Net Income / Net Profit | ¥51.2B | ¥84.5B | -39.4% |
| ROE | 2.8% | 4.7% | - |
For the fiscal year ended March 2026, Revenue was ¥1890.1B (YoY -¥67.0B -3.4%), Operating Income was ¥105.9B (YoY -¥19.8B -15.8%), Ordinary Income was ¥109.2B (YoY -¥17.1B -13.5%), and Net Income attributable to owners of the parent was ¥69.2B (YoY -¥24.8B -26.4%), resulting in declines in both sales and profits. Weak sales in the core Business Wear segment reduced leverage benefits and compressed profits, causing the operating margin to fall 0.8pt from 6.4% to 5.6% year-on-year. The recognition of Special Losses of ¥11.1B (including impairment losses of ¥6.3B) widened the reduction in Net Income, and EPS decreased by 24.4% from 63.44 yen to 47.95 yen.
[Revenue] Revenue declined to ¥1890.1B (YoY -3.4%). By segment, the core Business Wear business recorded a significant revenue decline to ¥1243.0B (YoY -6.6%), representing 65.8% of sales and serving as the primary driver of company-wide revenue contraction. Conversely, the Card Business ¥55.1B (YoY +4.6%), Franchisee Business ¥175.4B (YoY +8.2%), and Comprehensive Repair Services Business ¥146.2B (YoY +3.4%) achieved revenue growth, mitigating the overall decline. Real Estate Business ¥45.1B (YoY -1.2%), Printing & Media Business ¥108.1B (YoY -1.4%), and Miscellaneous Goods Retail ¥152.7B (YoY +1.0%) finished with slight decreases or gains. Gross margin improved 0.5pt to 51.9% (prior year 51.4%), but SG&A remained nearly flat at ¥875.8B (YoY -¥4.3B), pushing the SG&A ratio up 1.3pt to 46.3% (prior year 45.0%).
[Profitability] Operating Income totaled ¥105.9B (YoY -15.8%), and the operating margin declined 0.8pt to 5.6% (prior year 6.4%). Operating Income for the Business Wear segment fell sharply to ¥51.8B (YoY -38.1%), and the segment margin deteriorated to 4.2% (prior year 6.3%). In contrast, the Card Business delivered Operating Income of ¥24.2B (YoY +22.6%) with a high margin of 44.0%, and the Franchisee Business ¥13.2B (YoY +18.1%) and Comprehensive Repair Services Business ¥3.7B (YoY +128.6%) also achieved profit increases. Non-operating income was ¥13.2B (including interest income ¥3.1B and dividend income ¥1.4B), and non-operating expenses were ¥9.9B (including interest expense ¥6.5B), resulting in Ordinary Income of ¥109.2B (YoY -13.5%). Extraordinary items were net -¥11.0B (recording gain on sales of investment securities ¥13.3B against impairment losses ¥6.3B and loss on disposal of fixed assets ¥4.1B), producing Profit before Tax of ¥98.2B (YoY -21.1%). After deducting income taxes of ¥28.3B, Net Income attributable to owners of the parent was ¥69.2B (YoY -26.4%), and the net margin fell to 3.7%. In conclusion, the company finished with lower revenue and profits.
The Business Wear segment recorded Revenue ¥1243.0B (YoY -6.6%), Operating Income ¥51.8B (YoY -38.1%), and margin 4.2% (prior year 6.3%), with underperformance in the core segment weighing on overall results. The Card Business posted Revenue ¥55.1B (YoY +4.6%), Operating Income ¥24.2B (YoY +22.6%), and margin 44.0%, maintaining high margins and contributing stable earnings. Printing & Media recorded Revenue ¥108.1B (YoY -1.4%) and Operating Income ¥0.5B (YoY +128.2%), turning profitable. Miscellaneous Goods Retail had Revenue ¥152.7B (YoY +1.0%) and Operating Income ¥1.6B (YoY +9.9%). Comprehensive Repair Services reported Revenue ¥146.2B (YoY +3.4%) and Operating Income ¥3.7B (YoY +128.6%), showing notable earnings improvement. The Franchisee Business expanded steadily with Revenue ¥175.4B (YoY +8.2%) and Operating Income ¥13.2B (YoY +18.1%). Real Estate Business recorded Revenue ¥45.1B (YoY -1.2%) and Operating Income ¥11.0B (YoY -2.8%), maintaining a high margin of 24.4%.
[Profitability] Operating margin was 5.6% (prior year 6.4%), and net margin was 3.7% (prior year 4.8%), both declining. Despite a high gross margin of 51.9%, a persistently high SG&A ratio of 46.3% pressured profitability. [Investment Efficiency] ROE fell to 3.8% (prior year 5.3%), and ROA declined to 2.3% (prior year 2.7%), indicating weaker capital productivity. Total asset turnover was 0.617x (prior year 0.615x), a marginal increase, suggesting significant room for asset efficiency improvement. [Financial Soundness] Equity Ratio was 59.1% (prior year 57.8%), remaining high, and the Current Ratio was 313.5% (prior year 282.1%), indicating very strong short-term payment ability. Debt/EBITDA was 3.74x (Total interest-bearing debt ¥662.0B, EBITDA ¥177.0B), showing moderately high leverage, but Interest Coverage was 27.15x (EBITDA / interest expense), indicating ample interest-paying capacity. [Cash Quality] Operating Cash Flow / Net Income multiple was 1.44x, showing good cash backing of profits, but Operating Cash Flow / EBITDA was 0.56x, indicating low cash conversion efficiency, driven by working capital deterioration such as inventory increases and accounts payable decreases.
Operating Cash Flow was ¥99.95B (YoY -27.5%), exceeding Net Income of ¥69.2B, yielding an OCF/NI multiple of 1.44x and showing good cash backing of profits. Operating CF before working capital changes was ¥139.6B (including depreciation ¥71.1B), but inventory changes (¥20.4B decrease) and decreases in accounts payable (¥52.3B decrease — working capital tied up) together resulted in a net cash outflow of ¥31.9B. Corporate tax payments of ¥37.1B also pressured Operating CF. Investing Cash Flow was -¥88.0B, primarily due to capital expenditures ¥42.7B and intangible asset acquisitions ¥11.9B totaling ¥54.6B, partly offset by proceeds from tangible fixed asset sales ¥0.3B and net decrease in time deposits. Free Cash Flow was limited to ¥11.99B. Financing Cash Flow was -¥189.8B, with main uses of funds including net repayment of long-term borrowings ¥46.4B, dividend payments ¥77.8B, share buybacks ¥30.0B, and redemption of corporate bonds ¥150.1B, and a net decrease in short-term borrowings of ¥42.5B. As a result, cash and cash equivalents decreased ¥175.7B during the period to an ending balance of ¥485.3B.
There is a large divergence between Ordinary Income ¥109.2B and Net Income ¥69.2B, primarily due to the recognition of Special Losses of ¥11.1B (including impairment losses ¥6.3B and loss on disposal of fixed assets ¥4.1B). Conversely, Special Gains included gain on sales of investment securities ¥13.3B, and the net extraordinary items amounted to a temporary net loss of ¥10.9B. Of non-operating income ¥13.2B, interest income ¥3.1B and dividend income ¥1.4B are recurring returns from financial assets, while foreign exchange gains ¥1.0B are dependent on exchange rate movements. Of non-operating expenses ¥9.9B, interest expense ¥6.5B is a recurring cost corresponding to interest-bearing debt of ¥662.0B (average interest approximately 1.0%). The fact that Operating CF exceeds Net Income by 44.1% indicates good cash realization of earnings, but the Operating CF/EBITDA remaining at 0.56x suggests that inventory stagnation and shortened accounts payable payment terms — i.e., deterioration in working capital — are degrading the quality of earnings.
The full-year guidance plans Revenue ¥1947.0B (YoY +3.0%), Operating Income ¥117.0B (YoY +10.5%), Ordinary Income ¥119.0B (YoY +9.0%), and Net Income ¥57.0B (YoY +11.3%), indicating expected increases in sales and profits. Progress against first-half results (Revenue ¥1890.1B, Operating Income ¥105.9B, Ordinary Income ¥109.2B, Net Income ¥51.2B) is 97.1% for Revenue, 90.5% for Operating Income, 91.8% for Ordinary Income, and 89.8% for Net Income, which is generally on track. However, achieving the planned second-half recovery will require a rebound in the core Business Wear segment and inventory normalization. The dividend forecast is an annual ¥19 (pre-stock split), implying a Payout Ratio of 35.5% against the full-year EPS forecast of 53.54 yen.
Annual dividends totaled ¥136 (interim ¥55, year-end ¥81), resulting in a Payout Ratio of 283.7%, substantially exceeding Net Income for the period. The company also executed share repurchases of ¥30.0B; combined with total dividends of ¥77.8B, total shareholder returns amounted to ¥107.8B, yielding a Total Return Ratio of approximately 156%. Free Cash Flow was limited to ¥11.99B, producing an FCF coverage of 0.06x, indicating a significant shortfall in internal funds to finance dividends and buybacks. Consequently, cash and cash equivalents declined by ¥175.7B to ¥485.3B at year-end, and the sustainability of the dividend depends on improvements in Operating CF and working capital efficiency through inventory reduction.
Working capital efficiency risk: Inventory turnover days are 177 days (ending inventory ¥41.14B ÷ daily Cost of Sales ¥2.33B) and CCC is 165 days, indicating increased cash tied up. Inventory stagnation can lead to markdowns or higher impairment losses, reducing cash generation capability. This is the primary reason Operating CF/EBITDA remains at 0.56x, and inventory rationalization is the top priority.
Concentration risk in the core business: The Business Wear segment accounts for 65.8% of sales and 48.9% of operating income, but posted Revenue YoY -6.6% and Operating Income YoY -38.1%, showing significant deterioration. Continued demand recovery delays or intensified competition could, via operating leverage, further depress margins, representing a structural vulnerability.
Sustainability risk of high returns: With a Payout Ratio of 283.7% and a Total Return Ratio of approximately 156%, shareholder distributions substantially exceed Net Income and FCF, and cash and cash equivalents fell ¥175.7B year-on-year. If Operating CF improvements and inventory reductions do not materialize, the company may be forced to revise return levels or increase borrowings due to liquidity constraints.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.6% | 4.6% (1.7%–8.2%) | +1.0pt |
| Net Margin | 2.7% | 3.3% (0.9%–5.8%) | -0.6pt |
Operating margin exceeds the industry median by 1.0pt, indicating relatively favorable profitability, but net margin lags the median by 0.6pt, reflecting the impact of Special Losses.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -3.4% | 4.3% (2.2%–13.0%) | -7.7pt |
Revenue growth is 7.7pt below the industry median, indicating weaker growth within the retail sector.
※Source: Company aggregation
Inventory turnover days of 177 and CCC of 165 indicate worsening working capital efficiency that suppresses cash generation; progress in inventory reduction is the most important indicator for improving Operating CF and FCF coverage. With Operating CF/EBITDA remaining at 0.56x, the sustainability of high dividends and share buybacks is uncertain.
The Business Wear segment’s operating margin fell 2.1pt from 6.3% to 4.2% amid Revenue growth of -6.6%, underscoring deteriorating profitability in the core segment. Achieving next fiscal year’s profit growth plan (Operating Income +10.5%) will require same-store sales recovery, reduced markdown rates through inventory rationalization, and improvement in the SG&A ratio.
High profitability in non-apparel areas such as the Card Business (Operating margin 44.0%), Franchisee Business (7.5%), and Real Estate Business (24.4%) suggests diversification could lift company-wide margins. However, these segments need time to scale and cannot immediately offset the core Business Wear segment’s scale; rebuilding the core business remains the priority.
This report is an earnings analysis document automatically generated by AI analyzing XBRL earnings disclosure data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on public financial statements. Investment decisions are your responsibility; please consult professionals as necessary before making investment decisions.
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