| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥7000.3B | ¥6653.6B | +5.2% |
| 営業利益 | ¥614.8B | ¥592.4B | +3.8% |
| 経常利益 | ¥636.7B | ¥606.0B | +5.1% |
| 純利益 | ¥444.3B | ¥420.7B | +5.6% |
| ROE | 9.1% | 8.4% | - |
For the fiscal year ended February 2026, consolidated results delivered Revenue of ¥7,000.3B (YoY +¥346.7B, +5.2%), Operating Income of ¥614.8B (YoY +¥22.4B, +3.8%), Ordinary Income of ¥636.7B (YoY +¥30.7B, +5.1%), and Net Income attributable to owners of parent of ¥444.3B (YoY +¥23.6B, +5.6%), achieving revenue and profit growth. Revenue progressed steadily, but Operating Income growth lagged revenue growth, resulting in an Operating Margin of 8.8%, down 0.1pt YoY. SG&A ratio rose to 26.3% from 24.5% a year ago (+1.8pt), with higher personnel costs, lease expenses, and depreciation weighing on margins. The Overseas segment posted high growth with Revenue ¥103.3B (+17.3%) and Operating Income ¥6.7B (+41.0%), but its revenue share remained 1.5%. Operating Cash Flow (OCF) declined to ¥480.5B (YoY -9.0%), driven by inventory increase of ¥40.4B and tax payments of ¥185.8B. Capital expenditures expanded to ¥229.3B, 3.3x depreciation of ¥70.0B, reflecting aggressive store openings and renovations. Free Cash Flow was negative ¥-182.8B, but the company returned ¥607.6B to shareholders via share buybacks ¥456.9B and dividends ¥150.7B, reducing cash at end of period to ¥891.9B (prior year-end ¥1,612.0B). Equity Ratio was 88.1% and Current Ratio 566.6%, maintaining very high financial soundness.
Revenue: Top line was ¥7,000.3B, +5.2% YoY. Japan segment accounted for core sales of ¥6,897.0B (+5.0%), while Overseas was ¥103.3B (+17.3%) with double-digit growth but only 1.5% share. Gross margin improved 0.1pt to 34.8% from 34.7%, aided by product mix and improved purchasing terms.
Profitability: Operating Income was ¥614.8B (+3.8%), lagging revenue growth. SG&A increased ¥107.5B (+6.2%) to ¥1,837.7B, pushing SG&A ratio to 26.3% from 24.5% (+1.8pt). Components rising included salaries and allowances ¥758.9B (prior ¥703.0B), lease expenses ¥334.1B (prior ¥330.2B), depreciation ¥70.0B (prior ¥61.1B), and advertising ¥118.2B (prior ¥115.1B), where fixed costs related to store openings and system investments and upward pressure on personnel costs compressed margins. Non-operating income included interest income ¥10.8B, securities interest ¥10.2B, and foreign exchange gains ¥3.2B, totaling ¥21.9B and boosting Ordinary Income. Extraordinary losses were minor at ¥12.6B (impairment losses ¥7.2B, loss on disposal of fixed assets ¥5.2B), yielding Profit Before Tax of ¥624.1B (+5.0%). Income taxes were ¥179.5B (effective tax rate 28.8%), and Net Income was ¥444.3B (+5.6%). The gap between Ordinary Income and Net Income was due to tax burden and extraordinary losses, while non-operating income partially offset operational slowdown. By segment, Japan Operating Income was ¥608.1B (margin 8.8%, +3.5%), Overseas ¥6.7B (margin 6.5%, +41.0%) showing high growth but small scale. In conclusion, while revenue and profit increased, SG&A rises outpaced gross margin improvement, limiting operating leverage and slightly reducing Operating Margin.
Japan segment: Revenue ¥6,897.0B (+5.0% YoY), Operating Income ¥608.1B (+3.5%), Operating Margin 8.8%. This core business represents 98.5% of consolidated revenue. Overseas segment: Revenue ¥103.3B (+17.3%), Operating Income ¥6.7B (+41.0%), Operating Margin 6.5%. Although overseas revenue share is only 1.5%, double-digit growth and margin improvement (4.8% → 6.5%, +1.7pt) are notable. The margin gap between Japan and Overseas is 2.3pt; Overseas is still building scale. Segment assets: Japan ¥5,554.6B, Overseas ¥59.5B, adjusted consolidated total assets ¥5,546.7B. Overseas ROA is about 11.3% (Operating Income ¥6.7B ÷ Segment Assets ¥59.5B), indicating high efficiency but limited absolute contribution. Future growth drivers are strengthening same-store performance and continued domestic openings, plus expanding overseas business foundations.
Profitability: Operating Margin 8.8% (prior 8.9%, -0.1pt), Net Margin 6.3% (prior 6.3%, flat), ROE 9.1% (prior 8.6%, +0.5pt). ROE improved due to stable Net Margin, higher Total Asset Turnover 1.26x (prior 1.17x, +0.09x), and slight increase in financial leverage 1.14x (prior 1.13x). Gross Profit Margin 34.8% (prior 34.7%, +0.1pt) indicates procurement improvement, but SG&A ratio rise to 26.3% (prior 24.5%, +1.8pt) pressured Operating Margin. ROA (on Ordinary Income basis) improved to 11.4% (prior 11.0%).
Cash Quality: OCF ¥480.5B equals 1.08x Net Income ¥444.3B, indicating good cash realization. However, OCF/EBITDA ratio was 0.70x (EBITDA = Operating Income ¥614.8B + Depreciation ¥70.0B = ¥684.8B; OCF ¥480.5B ÷ ¥684.8B), below industry guideline (≥0.9x), with inventory increase ¥40.4B and tax payments ¥185.8B constraining cash conversion. Accrual ratio (Net Income - OCF) ÷ Total Assets is -0.7% (negative), indicating good quality.
Investment Efficiency: CapEx ¥229.3B is 3.3x depreciation ¥70.0B, signaling an active investment phase. Inventory turnover days are about 49 days (ending inventory ¥609.2B ÷ Cost of Goods Sold ¥4,561.3B × 365) — somewhat long. Receivables turnover days about 12 days (Accounts receivable ¥150.0B ÷ Revenue ¥7,000.3B × 365) is short, consistent with retail cash business.
Financial Soundness: Equity Ratio 88.1% (prior 88.3%), Current Ratio 566.6% (prior 666.1%), Quick Ratio 459.4% — extremely sound. Interest-bearing debt is near zero (D/E ratio 0.14x), leaving ample funding capacity. However, cash at period end ¥891.9B (prior ¥1,612.0B, -44.7%) declined significantly; reduction attributable to share buybacks ¥456.9B and increased investments, though liquidity including short-term investment securities remains ample.
OCF was ¥480.5B, down 9.0% YoY (prior ¥528.0B). Starting from Profit Before Tax ¥624.1B, add-backs included Depreciation ¥70.0B, impairment loss ¥7.2B, adjustment for interest/dividend receipts -¥14.0B, foreign exchange P/L ¥2.9B, totaling subtotal ¥654.4B. Working capital changes included inventory increase -¥40.4B, accounts receivable increase -¥12.7B, accounts payable increase +¥16.1B, netting to cash outflow. Corporate tax payments -¥185.8B and interest/dividend receipts +¥11.9B resulted in OCF ¥480.5B. Investing Cash Flow was an outflow of -¥663.3B, mainly CapEx -¥229.3B; net purchase of short-term investment securities -¥212.0B (purchases -¥4,760.0B, sales +¥4,548.0B); net purchase of investment securities -¥204.5B (purchases -¥217.0B, sales +¥12.5B). Proceeds from disposal of fixed assets were minor ¥0.1B. Free Cash Flow was OCF ¥480.5B + Investing CF -¥663.3B = -¥182.8B. Financing CF included share buybacks -¥456.9B and dividend payments -¥150.6B totaling -¥607.5B, leading to net cash decrease during the period of -¥790.2B (including foreign exchange adjustment +¥2.0B). End-period cash ¥891.9B declined from ¥1,612.0B but liquidity remains high when including short-term investment securities ¥1,531.8B. Inventory buildup, aggressive investing, and large shareholder returns were primary cash outflows; short-term liquid assets were used but medium-to-long-term sustainability requires monetization of investments and OCF enhancement.
Earnings quality is broadly good, though cash conversion shows some issues. Operating Income ¥614.8B is driven by recurring retail operations; one-off items were minor (impairment ¥7.2B, 1.2% of Operating Income; loss on disposal of fixed assets ¥5.2B). Non-operating income ¥21.9B (0.31% of Revenue) comprised interest income ¥10.8B, securities interest ¥10.2B, dividend income ¥3.1B, and foreign exchange gains ¥3.2B — mainly interest and investment returns that can be expected to recur. Non-operating expenses were minimal (foreign exchange loss ¥2.0B). Ordinary Income ¥636.7B reflects operating performance. Extraordinary items were limited to losses of ¥12.6B (2.0% of Profit Before Tax); divergence between Ordinary Income and Net Income stems mainly from tax burden (Profit Before Tax ¥624.1B → Net Income ¥444.3B, effective tax rate 28.8%). Accrual (Net Income ¥444.3B - OCF ¥480.5B = -¥36.2B) is negative, indicating cash generation exceeded accounting profit. However, OCF/EBITDA 0.70x is low, with inventory increase ¥40.4B and tax payments ¥185.8B suppressing cash conversion. Working capital changes were driven by inventory build-up; whether this is strategic stocking based on demand forecasts or indicative of sluggish inventory turnover needs monitoring. Comprehensive Income was ¥482.9B (Net Income ¥444.3B + Other Comprehensive Income ¥38.3B), aided by unrealized gains on securities ¥26.3B and actuarial gains ¥12.2B; currency translation adjustment -¥0.5B and deferred hedge P/L ¥0.3B were minor. Valuation gains reflect market improvements but are unrealized.
For FY2027 ending February 2027, management forecasts Revenue ¥7,291.9B (vs prior year +4.2%), Operating Income ¥668.4B (+8.7%), Ordinary Income ¥688.2B (+8.1%), and Net Income attributable to owners of parent ¥470.0B (+5.8%). Operating Margin is expected to improve to 9.2% from 8.8% (+0.4pt), assuming SG&A efficiency gains and gross margin improvement. Revenue growth +4.2% is a slowdown from this year’s +5.2%, but projected profit growth +8.7% far exceeds this year’s +3.8%, implying expected realization of operating leverage. Versus this year’s results, the full-year Operating Income target ¥668.4B corresponds to a progress rate of 92.0% against current results of ¥614.8B, indicating generally steady momentum. Forecast EPS is ¥227.92 with dividend guidance ¥40 (post-split basis), implying a Payout Ratio of approximately 17.5%, a substantial decline from this year’s 35.1%. This reflects the 1-for-3 stock split (1 share → 3 shares) and suggests a reassessment of dividend policy. Achieving the full-year plan hinges on monetization of store opening/renovation investments, inventory efficiency improvements to boost cash generation, and fixed cost control.
This fiscal year’s dividend comprised an interim dividend ¥100 and year-end dividend ¥115, totaling ¥215 (prior ¥95, +126.3%), maintaining a stable dividend policy with a Payout Ratio of 35.1% (same as prior year). Share buybacks amounted to ¥456.9B, and treasury shares at period-end were 13.86B shares (outstanding shares 22.15B, 6.3%) with a book value of ¥470.8B. Total dividend payout was approximately ¥150.7B (¥215 per share × weighted average shares 219.7M), and combined with share buybacks total shareholder returns were ¥607.6B. Total Return Ratio was 136.7% (Total Return ¥607.6B ÷ Net Income ¥444.3B), substantially exceeding Net Income and also exceeding OCF at 126.4%. Coverage of Free Cash Flow -¥182.8B by total returns was -3.32x, indicating returns were funded by drawing down on cash. End-period cash ¥891.9B fell 44.7% from ¥1,612.0B, but liquidity including short-term investment securities ¥1,531.8B remains ample (total ¥2,423.7B), equivalent to 49.6% of shareholders’ equity ¥4,885.4B. Next period dividend guidance ¥40 (post-split basis; pre-split equivalent ¥120) appears materially lower than this year’s ¥215, but due to the 1→3 split the effective payout is not a cut. Nevertheless, the projected Payout Ratio ~17.5% indicates reallocation of funds toward investments. For sustainability, (1) monetization of CAPEX to increase OCF, (2) inventory efficiency improvements to enhance cash conversion, and (3) stabilization of share buyback scale are essential for continued shareholder returns.
Industry position (reference, company research): Compared with the retail industry median for FY2025, the company’s Operating Margin 8.8% far exceeds the industry median 4.6% (IQR: 1.7%-8.2%), positioning the company near the upper quartile. Net Margin 6.3% also exceeds the industry median 3.3% (IQR: 0.9%-5.8%), indicating superior profitability. ROE 9.1% slightly exceeds the industry median 5.9% (IQR: 2.6%-12.0%). Equity Ratio 88.1% dramatically exceeds the industry median 50.2% (IQR: 40.1%-63.6%), placing the company among the most financially sound within the sector. Current Ratio 566.6% also far exceeds the industry median 184% (IQR: 126%-254%). Inventory turnover days ~49 days are shorter than the industry median 65.7 days (IQR: 17.4-111.4 days), indicating good inventory efficiency, though the YoY increase merits attention. CapEx/Depreciation ratio 3.3x far exceeds the industry median 1.16x (IQR: 0.75-1.92x), signaling an investment expansion phase. Revenue growth +5.2% is roughly in line with industry median +4.3% (IQR: +2.2%-+13.0%). Payout Ratio 35.1% slightly exceeds the industry median 27% (IQR: 20%-34%). Overall, the company ranks highly on profitability and financial soundness, with the ability to pursue investment and shareholder returns, but controlling SG&A ratio trends and managing inventory efficiency will be key to maintaining relative advantage.
Three key points from the results: (1) Balancing aggressive investment and margin improvement: CapEx is large at 3.3x depreciation, reflecting investments in store openings, renovations, and IT infrastructure. Guidance expects Operating Margin 9.2% next year (+0.4pt from 8.8%), making realization of investment benefits the litmus test. With SG&A ratio trending up (+1.8pt), absorption via gross margin improvement and operating leverage is assumed; timing of revenue contribution from renovated/new stores is critical. (2) Large shareholder returns and capital allocation redesign: Total returns ¥607.6B (Return Ratio 136.7%) far exceeded OCF and Free Cash Flow, reducing cash by 44.7% at year-end. Financial soundness remains very high, but sustaining return pace amid investment requires monetization of CAPEX and stronger OCF. Next year’s dividend guidance (post-split ¥40, Payout Ratio ~17.5%) indicates re-prioritization of capital allocation. (3) Inventory management and cash conversion efficiency: Inventory increase ¥40.4B exceeded sales growth, with turnover days ~49 and OCF/EBITDA 0.70x below industry guideline (≥0.9x). Whether the strategic stock build will capture demand and improve gross margin or become stale inventory causing markdown pressure will determine next year’s margins and cash generation. Given domestic concentration (98.5% of sales), sensitivity to domestic consumption and weather is high, requiring flexible inventory management.
This report is an AI-generated earnings analysis based on XBRL financial statement data. It does not constitute an investment recommendation for any specific security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions are your responsibility; please consult a professional advisor as needed.