ABC-Mart has raised its full-year earnings forecast for the fiscal year ending February 2027. Consolidated sales are now projected to reach 403 billion yen, with operating income up 6.0% from the prior year.
The company announced revisions to its consolidated performance projections for the fiscal year ending in February 2027 on November 4. The adjustment reflects strong first-half results and steady progress against second-half plans.
Consolidated sales are revised upward by 0.5% to 4,030 billion yen. Operating income sees a significant increase of 2.4%, or 1,600 million yen, reaching 6 billion 720 million yen.
Other key metrics also reflect this positive trend. Consolidated ordinary income is projected at 6 billion 980 million yen, while net income attributable to parent company shareholders rises 2.8% to 4 billion 770 million yen. Earnings per share are forecast at 192.64 yen, up 5.25 yen. Individual segment figures show consolidated sales of 2,742 billion yen and operating income of 5 billion 890 million yen. Compared to prior-year actuals, this represents a 6.3% increase in sales and a 6.2% rise in operating income, indicating robust growth driven by effective cost management and optimized sales strategies.
The upward revision incorporates the surplus from the initial first-half plan. During this period, rising prices and a weak yen boosted corporate profits and personal income, while increased inbound tourism further drove up average transaction values.
Conversely, the company maintains a cautious stance regarding the second half. It anticipates potential impacts from declining consumer sentiment due to inflation and changes to the domestic tax-free system starting in November, which shifts to a refund method.
To manage these uncertainties, ABC-Mart has decided not to carry the first-half surplus into further second-half expansion but will adhere to the original plan. This conservative yet realistic approach aims for steady achievement rather than aggressive growth, preserving stability for shareholder returns and strengthening the management foundation.
The revision forecasts growth significantly exceeding prior-year actuals for the fiscal year ending February 2026. Consolidated sales are expected to grow 6.3% annually, while operating income is projected to rise 6.2%. This performance stems from successful price pass-through in the fashion sector and sustained inbound consumption benefiting from a weak yen.
| Item | Prior Year Actual (Feb 2026) | Revised Forecast (Feb 2027) | YoY Change |
|---|---|---|---|
| Consolidated Sales | 378.6 billion yen | 403.0 billion yen | +6.3% |
| Consolidated Operating Income | 6.3287 billion yen | 6.72 billion yen | +6.0% |
| Consolidated Ordinary Income | 6.7156 billion yen | 6.98 billion yen | +3.9% |
| Net Income | 4.6346 billion yen | 4.77 billion yen | +2.9% |
While the broader retail industry struggles with rising labor and logistics costs, ABC-Mart differentiates itself through high-value product mix and tourism demand, competing on quality and experience rather than price. This demonstrates the company's ability to maintain and expand profitability even amid challenging market conditions.
Analyst take
Analyst View: This disclosure represents a healthy upward revision, linking short-term strength to mid-term stability. Crucially, holding the second-half forecast steady signals prudence regarding the structural shift in the tax-free system. While this hedges against potential inbound tourism downturns, the first-half surplus likely enhances fixed cost absorption and profit margins. Investors can expect sustained dividend payouts and potential share buybacks based on solidified earnings power.
