Okuwa Co., Ltd. Revises Earnings Forecast Down 38% on Weak Consumer Demand
Okuwa Co., Ltd. (TSE:8217), a Japanese supermarket operator, has downwardly revised its full-year earnings forecast for the fiscal year ending February 2027, citing persistent consumer caution and intensifying price competition.
| Item | Before | After | Change |
|---|---|---|---|
| 営業収益 | JPY 126.3bn | JPY 123.2bn | -2.4% |
| Operating Profit | JPY 600M | △57 | — |
| Ordinary Income | JPY 680M | JPY 13M | -98.1% |
| 親会社株主に帰属する中間純利益 | JPY 300M | △187 | — |
| １株当たり中間純利益 | 7.37 | △4.60 | — |
For the full fiscal year, Okuwa cut operating profit to JPY 1.3bn from JPY 2.1bn (down 38.1%), while net profit plummeted to JPY 50M from JPY 650M (down 92.3%). Full-year revenue is now forecast at JPY 250.8bn, down JPY 4.7bn from the prior estimate.
The company attributed the revision to stronger-than-expected consumer cost-consciousness amid persistent inflation, despite promotional efforts targeting polarized spending patterns. Same-store sales in the second quarter fell 2.3% below plan. Raw material price volatility and currency headwinds continued to pressure procurement costs, while competitive pricing strategies to retain customers eroded gross margins by 0.2 percentage points. Management lowered second-half same-store sales guidance by 1.0 percentage point from initial projections.
The sharp earnings contraction underscores mounting headwinds in Japan’s supermarket sector, where margin compression from price competition and weak consumer demand are offsetting cost-control efforts. Investors should monitor whether Okuwa can stabilize same-store sales trends and restore profitability in the second half of the fiscal year.
Source: Original filing (TDnet) | 日本語版
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