Shimamura First-Quarter Operating Profit Jumps 17% to ¥17.9bn as Sales Rise 8%

Shimamura Co., Ltd. (TSE: 8227), Japan's largest apparel-focused value retailer after Fast Retailing, posted a strong start to its fiscal year ending February 2027. For the first quarter (February 21–May 20, 2026) under Japanese GAAP, consolidated revenue rose 7.9% year-on-year to ¥181.66 billion, operating profit jumped 16.8% to ¥17.89 billion, ordinary profit climbed 18.9% to ¥18.79 billion and net profit attributable to owners advanced 19.0% to ¥12.86 billion. EPS was ¥61.92, up from a split-adjusted ¥48.98.

Margin expansion drives profit faster than sales

Profit grew more than twice as fast as revenue, reflecting better gross margins and disciplined cost control across the Shimamura, Avail, Birthday and other store formats. The company carried out a 3-for-1 common-stock split effective February 21, 2026, and per-share figures are adjusted accordingly. The balance sheet remains exceptionally strong, with total assets of ¥576.86 billion, net assets of ¥492.64 billion and an equity ratio of 85.4%.

Dividend and stock split

Reflecting the split, Shimamura guides a full-year FY2/2027 dividend of ¥80.00 per share (¥40.00 interim plus ¥40.00 year-end). On a pre-split basis that compares with ¥215.00 a year earlier, so the effective payout is being raised.

Full-year outlook

For full-year FY2/2027, Shimamura guides revenue of ¥729.19 billion (+4.2%), operating profit of ¥66.84 billion (+8.7%), ordinary profit of ¥68.83 billion (+8.1%) and net profit of ¥47.32 billion (+6.4%), for EPS of ¥227.92. The first quarter's double-digit profit growth puts the retailer comfortably ahead of that full-year pace.

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.