■ Business performance for the first half of fiscal year 2025
●Net sales increased, but profits were lower than the previous year.
Net sales for the first half of fiscal year 2025 (interim period) were 385,668 million yen, an increase of 101.4% compared to the same period last year. Existing store Net sales also performed well, increasing 0.9% compared to the previous year.
However, despite efforts to reduce gross profit margins and cut expenses, operating profit was 13,787 million yen (95.1% compared to the same period last year), and interim net profit attributable to owners of parent was 9,336 million yen (93.1% compared to the same period last year), resulting in a decrease in profits despite an increase in revenue.
●Sales of PCs, mobile phones, game consoles, etc. drove the results.
Due to rising temperatures following record-breaking heat, seasonal products such as air conditioners performed well in First Quarter from April to June. In addition, demand for replacement purchases of PCs running Windows 10, for which support ends in October 2025, a significant increase in mobile phone sales, and the launch of new home game consoles all contributed significantly to the increase in sales.
●The main factors behind the decrease in profits were a change in sales composition and an increase in labor costs.
The gross profit margin was 29.89%, a decrease of 0.27 percentage points from the same period last year. This was due to an increase in the sales composition ratio of PCs, mobile phones, game consoles, and other products with relatively low gross profit margins (a deterioration in the gross profit mix). On the other hand, personnel expenses increased due to base salary increases, but the selling, general and administrative expenses ratio improved by 0.04 percentage points due to Net sales etc.
■Financial outlook for fiscal 2025
●For the full fiscal year 2025, we expect both sales and profits to increase.
For the full fiscal year 2025, we forecast consolidated Net sales 790 billion yen (up 2.8% year-on-year), operating profit of 25 billion yen (up 6.9% year-on-year), and Profit attributable to owners of parent 14.5 billion yen (up 2.7% year-on-year), which are the same as the figures initially announced, and we expect increases in both sales and profits.
●Efforts to improve productivity and further strengthen private label products, renovations, and cleaning services.
Since last year, we have been working to standardize store operations by reviewing operations at the individual store level, creating more time for employees to serve customers and improving operational efficiency.We are also working to further strengthen our business foundation by further expanding the product lineup of our private brand "e angle," providing consultation support for renovations, and providing cleaning services.
●New store opening plans
Regarding new store openings, we plan to open one new store and relocate or rebuild two stores in the second half of this fiscal year, bringing the total number of new store openings for the year to eight, including the five stores opened in the first half.