SUMINOE Co., Ltd. Revises Earnings Forecast — Operating Profit Up 7.3%

SUMINOE Co., Ltd. Revises Earnings Forecast — Operating Profit Up 7.3%

SUMINOE Co., Ltd. (TSE:3501) has raised its earnings forecast for the fiscal year ending May 31, 2026, citing strong demand for high-value-added interior products, though a deferred tax asset write-down will swing net profit to a loss.

The textile and interior furnishings company upgraded revenue guidance by JPY 1.6bn and operating profit by JPY 160M, reflecting robust expansion in both commercial and residential high-margin product lines. Ordinary income (keijo rieki), a Japan-specific metric capturing operating profit plus non-operating items, is now forecast at JPY 2.76bn, up 10.4%. Management attributed the improvements to steady sales growth and margin expansion in the interior business segment.

However, the company’s bottom-line profit will reverse to a loss of JPY 340M from a prior forecast of JPY 400M profit, primarily due to a JPY 981M write-down of deferred tax assets and the resulting tax adjustment charge. Management stated it conducted a cautious reassessment of the recoverability of deferred tax assets and determined the write-down was necessary. Earnings per share will decline to negative JPY 25.64 from positive JPY 30.17. The company maintained its dividend forecast unchanged, signaling confidence in operational cash generation despite the accounting charge.

Source: Original filing (TDnet) | 日本語版

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