Nishimatsuya Chain Co., Ltd. (TSE: 7545) reported consolidated first-quarter results for the three months ended May 20, 2026 — the opening quarter of its fiscal year ending February 2027 (Q1 FY2/2027), prepared under Japanese GAAP. Net sales came to ¥54,554 million, operating profit to ¥5,321 million, ordinary profit to ¥5,471 million and net profit attributable to owners of the parent to ¥3,768 million, for basic earnings per share of ¥62.98 (diluted ¥62.79). Comprehensive income was ¥2,237 million, the gap to net profit reflecting a negative swing in retirement-benefit and available-for-sale valuation adjustments.
No year-earlier comparison — and why
An unusual feature of this report is the absence of any year-on-year percentages. Nishimatsuya only began preparing consolidated financial statements from the interim period of FY2/2026, so there is no consolidated first quarter for the prior year to compare against; the company states explicitly that prior-period comparative analysis has not been performed. Investors should therefore read the quarter against management's own full-year guidance rather than against a year-ago base. On that yardstick the start is encouraging: the ¥5,321 million in operating profit already represents roughly 42% of the full-year operating-profit target, well ahead of a simple pro-rata pace.
Store network expands to 1,183; gross margin firm
The core operating story is steady store-network growth. During the quarter Nishimatsuya opened 12 new stores and closed 10, lifting the period-end store count to 1,183 as it presses ahead with a standardized, convenient store format. Gross profit reached ¥19,451 million on the higher sales, while selling, general and administrative expenses rose to ¥14,130 million, reflecting the cost of an aggressive opening program. On the merchandise side, the apparel division benefited from warmer weather that lifted spring and summer clothing — with continued momentum in older-elementary-school sizes — and the sundries division saw strength in food items such as infant formula, plus paper diapers, hygiene products, toys, large items including child car seats, and rainwear. The official online store also grew, helped by an increase in new members. The group runs a single reportable segment — the sale of baby and children's daily-living goods — so no segment breakdown is provided.
Balance sheet steady; buyback continues
Total assets stood at ¥162,048 million at quarter-end, up ¥1,797 million from the prior year-end, as accounts receivable rose ¥3,503 million while investment securities declined ¥2,176 million. Net assets rose ¥845 million to ¥99,514 million, leaving the equity ratio at a robust 61.2%. The increase in equity came chiefly from the ¥3,768 million of quarterly net profit, partly offset by ¥958 million of dividend payments, ¥499 million of treasury-share purchases (229,200 shares acquired under a board resolution dated April 2, 2026) and a ¥1,504 million decline in valuation differences on available-for-sale securities. Depreciation for the quarter was ¥443 million; the company did not prepare a quarterly cash-flow statement.
Dividend held at ¥32; full-year guidance points to 26% profit growth
Nishimatsuya left its FY2/2027 dividend forecast unchanged at ¥32.00 per share (¥16.00 interim plus ¥16.00 year-end), matching the prior year. Full-year guidance — also unrevised from the April 2, 2026 release — calls for net sales of ¥205,000 million (+6.0%), operating profit of ¥12,540 million (+26.1%), ordinary profit of ¥13,000 million (+23.0%) and net profit attributable to owners of ¥8,377 million (+22.3%), for projected EPS of ¥139.78. The first-half (interim) plan envisions sales of ¥102,934 million (+6.1%) and operating profit of ¥7,460 million (+2.1%). With first-quarter operating profit already covering more than two-thirds of the interim target, the quarter sets a constructive tone against a full-year plan that leans on continued store openings, firm merchandise demand and online growth.
| Metric | Q1 FY2/2027 | Note |
|---|---|---|
| Net sales (¥ million) | 54,554 | No prior-year comparison |
| Operating profit (¥ million) | 5,321 | No prior-year comparison |
| Ordinary profit (¥ million) | 5,471 | No prior-year comparison |
| Net profit attrib. to owners (¥ million) | 3,768 | No prior-year comparison |
| Basic EPS (¥) | 62.98 | Diluted ¥62.79 |
| Comprehensive income (¥ million) | 2,237 | — |
| Total assets (¥ million) | 162,048 | +¥1,797M vs year-end |
| Net assets (¥ million) | 99,514 | +¥845M vs year-end |
| Equity ratio | 61.2% | — |
| Store count (period-end) | 1,183 | +12 opened, -10 closed |
| FY2/27 dividend forecast (¥) | 32.00 | ¥16 interim + ¥16 year-end |
| FY2/27 sales guidance (¥ million) | 205,000 | +6.0% |
| FY2/27 operating-profit guidance (¥ million) | 12,540 | +26.1% |
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.