Nitori Holdings Co., Ltd. (TSE: 9843) released consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) under IFRS. Revenue declined 1.8% to ¥912,248 million from ¥928,828 million a year earlier, as domestic foot traffic and consumer spending on home goods remained subdued amid ongoing cost-of-living pressures. Despite the top-line softness, the group's continued focus on cost efficiency and private-label merchandise drove operating profit up 6.7% to ¥125,526 million, pre-tax profit up 8.4% to ¥127,357 million, and net profit attributable to owners of the parent up 8.1% to ¥89,274 million. Basic EPS stood at ¥157.98 (¥146.08 a year earlier, restated for the October 2025 five-for-one stock split), and return on equity reached 9.4%.
Margin expansion offsets revenue headwinds
Nitori's operating margin widened to 13.8% from 12.7% in FY3/2025, a notable improvement that reflects the retailer's disciplined approach to sourcing, logistics, and inventory management. The group's vertically integrated business model — encompassing product planning, manufacturing, and retail — gives Nitori structural pricing power that allowed it to offset raw-material and logistics cost pressures better than conventional furniture chains. Equity income from associates contributed ¥4,258 million (versus ¥3,265 million in FY3/2025), providing an additional earnings tailwind. The asset-to-equity ratio (pre-tax profit to total assets) stood at 8.2%.
Balance sheet and cash flow remain solid
Total assets grew to ¥1,571,284 million from ¥1,529,421 million, reflecting ongoing store network expansion and infrastructure investment. Equity attributable to owners of the parent rose to ¥988,559 million, lifting the equity ratio to 62.9% from 59.2%. Book value per share (post-split) increased to ¥1,749.49 from ¥1,602.90. Operating cash flow remained robust at ¥148,911 million (versus ¥144,384 million), while investing outflows moderated sharply to ¥55,103 million from ¥127,856 million — the prior year's heavy capex cycle having largely run its course. Cash and equivalents ended the period at ¥145,010 million.
Dividend and FY27 guidance reflect cautious optimism
In FY3/2026 the board paid an interim dividend of ¥77.00 per share (post-split) and declared a year-end dividend, bringing total cash returned to shareholders to approximately ¥17,463 million. For FY3/2027, Nitori guides full-year dividends of ¥48.00 per share (¥16.00 interim + ¥32.00 year-end), implying a payout ratio of approximately 19.9%. The FY3/2027 outlook calls for revenue of ¥957,000 million (+4.9%), operating profit of ¥130,300 million (+3.8%), pre-tax profit of ¥131,000 million (+2.9%), and net profit attributable to owners of ¥91,000 million (+1.9%), with EPS of ¥161.05. The guidance implies steady but measured growth as Nitori continues its domestic store renovation program and evaluates overseas expansion opportunities.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 912.2 | 928.8 | −1.8% |
| Operating profit (¥ billion) | 125.5 | 117.7 | +6.7% |
| Pre-tax profit (¥ billion) | 127.4 | 117.4 | +8.4% |
| Net profit attrib. to owners (¥ billion) | 89.3 | 82.5 | +8.1% |
| EPS (¥, post-split) | 157.98 | 146.08 | +8.1% |
| Operating margin | 13.8% | 12.7% | +1.1pp |
| Equity ratio | 62.9% | 59.2% | +3.7pp |
| Total assets (¥ billion) | 1,571.3 | 1,529.4 | +2.7% |
| Operating cash flow (¥ billion) | 148.9 | 144.4 | +3.1% |
| Annual dividend (¥, post-split) | ~93 | 152.00* | — |
| FY27 revenue guidance (¥ billion) | 957.0 | — | +4.9% |
| FY27 operating profit guidance (¥ billion) | 130.3 | — | +3.8% |
* FY3/2025 dividend shown pre-split (1:5 split effective October 2025). FY3/2026 interim ¥77.00 paid; year-end amount not separately disclosed in the tanshin.
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.