Asahi Co., Ltd. (TSE: 3333), operator of "Cycle Base Asahi," Japan's largest bicycle-retail chain, reported non-consolidated results for the first quarter of the fiscal year ending February 2027 (Q1 FY2/2027; the quarter ran 21 February 2026 – 20 May 2026) under J-GAAP. Net sales rose 2.5% year-on-year to a first-quarter record ¥27,786 million on steady bicycle demand, but profit at every line slipped: operating profit fell 5.3% to ¥3,097 million, ordinary (recurring) profit fell 7.8% to ¥3,138 million, and net profit fell 8.4% to ¥2,140 million from ¥2,336 million. Basic EPS came in at ¥82.18 versus ¥89.71 a year earlier, as cost and margin pressure outpaced the modest top-line gain.
Record Q1 sales, softer profit
The quarter set a first-quarter sales record at ¥27.79 billion, underlining the resilience of bicycle demand at the chain's stores. The profit decline reflects margin pressure rather than weak volumes — operating profit eased 5.3% and ordinary profit 7.8% as costs rose faster than sales. Against the prior-year comparatives of ¥27,104 million in sales, ¥3,270 million in operating profit, ¥3,403 million in ordinary profit and ¥2,336 million in net profit, the result reads as steady demand met by a tighter cost backdrop.
Balance sheet stays strong
Asahi's financial position remained robust at quarter-end, with total assets of ¥58,500 million, net assets of ¥41,669 million and an equity ratio of 71.2% — a conservatively financed balance sheet that leaves ample room to fund store investment from internal resources.
Full-year guidance unchanged; recovery weighted to H2
Despite the soft first quarter, management left its full-year FY2/2027 guidance unchanged, implying a profit recovery over the balance of the year. The forecast still calls for net sales of ¥86,278 million (+6.0%), operating profit of ¥4,300 million (+9.2%), ordinary profit of ¥4,440 million (+6.5%) and net profit of ¥2,730 million (+20.3%), with EPS of ¥104.83. The annual dividend forecast is held flat at ¥50.00 (¥25.00 interim + ¥25.00 year-end), unchanged year-on-year.
Notably, the company's first-half guidance still embeds a profit decline — H1 sales of ¥47,941 million (+4.4%) but operating profit of ¥3,320 million (−11.6%) and net profit of ¥2,223 million (−15.5%). With the full-year targets pointing to growth, the projected recovery is therefore weighted heavily to the second half of the year.
| Metric | Value | YoY |
|---|---|---|
| Net sales (¥ million) | 27,786 | +2.5% |
| Operating profit (¥ million) | 3,097 | -5.3% |
| Ordinary profit (¥ million) | 3,138 | -7.8% |
| Net profit (¥ million) | 2,140 | -8.4% |
| EPS (¥) | 82.18 | — |
| Equity ratio | 71.2% | — |
| FY2/27 net-profit guidance (¥ million) | 2,730 | +20.3% |
| Annual dividend, forecast (¥) | 50.00 | — |
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.