Pan Pacific International Holdings Corporation (TSE: 7532), operator of Japan's best-known discount retail chain Don Quijote as well as MEGA Don Quijote and UNY supermarkets, reported its third-quarter cumulative (nine-month) results for the fiscal year ending June 2026 on May 13, 2026, covering the period from July 1, 2025 to March 31, 2026. Consolidated net sales rose 8.2% year-on-year to ¥1,826,534 million, driven by sustained inbound tourism spending at Japanese stores and continued overseas store expansion. Operating profit grew 6.9% to ¥137,521 million, ordinary profit advanced 11.7% to ¥140,363 million, and profit attributable to owners of the parent surged 23.8% to ¥93,966 million from ¥75,871 million in the same nine months a year earlier. Earnings per share — calculated on a post-split basis following the October 2025 five-for-one stock split — rose to ¥31.45 from ¥25.42.
The stronger growth in net profit relative to sales and operating profit reflects improved non-operating income items and a more favourable ordinary profit trajectory. Comprehensive income for the nine-month period reached ¥106,378 million (+30.0% YoY), up from ¥81,813 million the prior year, indicating a broad-based improvement in the group's consolidated performance including currency translation effects from its overseas businesses.
Domestic inbound tourism and overseas stores fuel top-line momentum
PPIH's core Don Quijote format — a compressed, treasure-hunt-style discount store with a broad mix of daily necessities, food, cosmetics, electronics, and branded luxury goods — has been a primary beneficiary of Japan's record inbound tourist influx. Stores in major urban tourist destinations including Shibuya, Shinjuku, Akihabara, Osaka Dotonbori, and Namba have reported sustained high foot traffic and spending from international visitors. The company also operates a growing network of stores across Southeast Asia and Hawaii through its overseas subsidiaries, adding incremental revenue to the group total. The combination of inbound-driven domestic same-store sales growth and overseas expansion has underpinned the consistent top-line beat for the current fiscal year, with nine-month net sales already representing approximately 75% of the full-year guidance figure.
Balance sheet strengthens as equity ratio improves to 43.9%
Total consolidated assets rose to ¥1,558,471 million at March 31, 2026, up from ¥1,511,445 million at the prior fiscal year-end (June 30, 2025), reflecting investment in store network expansion and working capital growth on higher revenues. Net assets increased to ¥715,174 million from ¥624,045 million a year earlier, and the equity ratio improved to 43.9% from 40.1%, pointing to a strengthening balance sheet as retained earnings accumulate and the group's capital base broadens. The equity ratio improvement of nearly 3.8 percentage points over the fiscal year to date is a notable structural positive for a retail operator of this scale.
Dividend and full-year guidance maintained
PPIH maintained its full-year dividend forecast at ¥35.00 per share (Q2 interim of ¥9.00 already paid; year-end forecast ¥26.00), a substantial increase from the ¥8.50 split-adjusted total paid for the prior fiscal year, reflecting the group's policy of returning higher earnings to shareholders. For the full fiscal year ending June 2026, the company guides for net sales of ¥2,435,000 million (+8.4%), operating profit of ¥174,000 million (+7.2%), ordinary profit of ¥172,000 million (+8.5%), and net profit attributable to owners of ¥107,000 million (+18.2%), equivalent to full-year EPS of ¥35.80. With three quarters completed and net profit already at ¥93,966 million — 87.8% of the full-year target — execution risk for the remaining quarter appears modest. The company made no revision to these guidance figures at the time of this disclosure.
| Metric | 9M FY2026 | 9M FY2025 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 1,826,534 | 1,688,207 | +8.2% |
| Operating profit (¥ million) | 137,521 | 128,683 | +6.9% |
| Ordinary profit (¥ million) | 140,363 | 125,668 | +11.7% |
| Net profit attrib. to owners (¥ million) | 93,966 | 75,871 | +23.8% |
| EPS (¥, post-split) | 31.45 | 25.42 | +23.7% |
| Comprehensive income (¥ million) | 106,378 | 81,813 | +30.0% |
| Total assets (¥ million) | 1,558,471 | 1,511,445 | +3.1% |
| Net assets (¥ million) | 715,174 | 624,045 | +14.6% |
| Equity ratio | 43.9% | 40.1% | +3.8pp |
| Interim dividend paid (¥, post-split) | 9.00 | 3.00 | +200.0% |
| FY guidance — net sales (¥ million) | 2,435,000 | — | +8.4% |
| FY guidance — operating profit (¥ million) | 174,000 | — | +7.2% |
| FY guidance — ordinary profit (¥ million) | 172,000 | — | +8.5% |
| FY guidance — net profit (¥ million) | 107,000 | — | +18.2% |
| FY guidance — EPS (¥) | 35.80 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.