Sougou Shouken Co.,Ltd. Revises Earnings Forecast Down 40.8% on New Year Card Decline
Sougou Shouken Co.,Ltd. (TSE:7850) has cut its operating profit forecast for the fiscal year ending July 2026 by nearly 41%, citing structural demand erosion in its core new year card printing business that is accelerating faster than initially anticipated.
| Item | Before | After | Change |
|---|---|---|---|
| 連結売上高 | JPY 16.3bn | JPY 15.7bn | -3.7% |
| 連結営業利益 | JPY 355M | JPY 210M | -40.8% |
| 連結経常利益 | JPY 435M | JPY 350M | -19.5% |
| 親会社株主に帰属する当期純利益 | JPY 335M | JPY 270M | -19.4% |
| １株あたり連結当期純利益 | JPY 112M | JPY 90M | -19.4% |
The company revised consolidated revenue down 3.7% to JPY 15.7bn, while operating profit (eigyo rieki) fell to JPY 210M from JPY 355M. Net profit attributable to parent company shareholders declined 19.4% to JPY 270M, with earnings per share sliding to JPY 90.02 from JPY 111.69. Ordinary income (keijo rieki), a Japan-specific metric encompassing operating profit plus non-operating items, was trimmed 19.5% to JPY 350M.
Management attributed the shortfall to accelerating structural decline in new year card demand outpacing original projections, which the company’s promotional business segment could not offset. Additionally, the company front-loaded security infrastructure investments and increased personnel spending to support long-term business sustainability, raising selling, general and administrative expenses.
The sharp 40.8% operating profit contraction signals margin compression beyond simple revenue decline, reflecting deteriorating profitability in the company’s traditional core business. With new year card printing representing a significant revenue contributor facing secular headwinds, investors should monitor whether diversification efforts in promotional services can stabilize earnings trajectory.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.