JM Holdings Co.,Ltd. Revises Earnings Forecast — Net Profit Down 30%
JM Holdings Co.,Ltd. (TSE:3539) has revised its earnings forecast for the fiscal year ending July 31, 2026, raising revenue guidance while sharply cutting profit expectations due to input cost pressures and store impairment charges.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 196.0bn | JPY 198.5bn | +1.3% |
| Operating Profit | JPY 10.9bn | JPY 9.00bn | -17.4% |
| Ordinary Income | JPY 11.0bn | JPY 9.10bn | -17.3% |
| Net Profit | JPY 7.00bn | JPY 4.90bn | -30.0% |
| EPS | JPY 137.37/share | JPY 96.16/share | JPY -41.21/share |
The supermarket and foodservice divisions are performing steadily, with four new store openings contributing to the upward revenue revision of JPY 2.5bn. However, the company faces margin compression from rising food commodity costs. Management is proceeding cautiously with price increases while monitoring competitive dynamics, resulting in lower gross profit margins than previously anticipated. The net profit decline is primarily driven by a JPY 1.04bn impairment charge on underperforming subsidiary-operated stores, which the company recognized as a special loss. Operating profit and ordinary income (keijo rieki)—a Japan-specific metric combining operating profit with non-operating income and expenses—both declined approximately 17%.
The revision underscores challenges facing Japan’s retail sector amid persistent input inflation and pricing power constraints. While comparable-store sales momentum remains intact, the company’s inability to fully pass through cost increases to consumers, combined with store-level profitability issues, has significantly pressured bottom-line results. Investors should monitor whether management’s remediation efforts at underperforming locations yield improvement in coming quarters.
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.