And ST HD Co., Ltd. (TSE: 2685) — the holding company for Adastria and its family of fashion brands including Global Work, niko and…, LOWRYS FARM and others — opened its fiscal year ending February 2027 with a strong operating performance. For the first quarter (March 1–May 31, 2026) under Japanese GAAP, consolidated revenue rose 3.7% year-on-year to ¥80.32 billion, while operating profit jumped 40.5% to ¥7.88 billion and ordinary profit surged 48.4% to ¥8.05 billion.
Profit surge stops short of the bottom line
Operating and ordinary profit climbed sharply on margin gains and strong brand sales, but the momentum did not carry through to net income. Net profit attributable to owners of the parent slipped 10.6% to ¥3.91 billion, and EPS eased to ¥84.74 from ¥94.70 a year earlier. The decline reflects a markedly heavier effective tax charge this quarter: the year-earlier first quarter carried an unusually light tax burden, so even though ordinary profit rose nearly 48%, that gain did not flow through to the bottom line once tax normalised.
Balance sheet
The group's financial base remained solid, with total assets of ¥147.02 billion, net assets of ¥83.61 billion and an equity ratio of 56.6%. The brand portfolio — spanning Adastria's flagship Global Work, niko and…, LOWRYS FARM and other labels across casual, women's and lifestyle fashion — continued to underpin the top line.
Dividend and outlook
And ST left its full-year FY2/2027 dividend forecast unchanged at ¥90.00 per share (¥45.00 interim plus ¥45.00 year-end), flat year-on-year. Full-year guidance was also held steady: revenue of ¥314.0 billion (+3.2%), operating profit of ¥17.2 billion (+4.1%), ordinary profit of ¥17.2 billion (+2.2%) and net profit of ¥10.5 billion (+10.5%), for EPS of ¥227.63. The strong first-quarter operating result keeps the group running comfortably ahead of that full-year pace.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Revenue (¥bn) | 80.32 | 77.46 | +3.7% |
| Operating profit (¥bn) | 7.88 | 5.60 | +40.5% |
| Ordinary profit (¥bn) | 8.05 | 5.42 | +48.4% |
| Net profit attrib. (¥bn) | 3.91 | 4.37 | −10.6% |
| EPS (¥) | 84.74 | 94.70 | −10.5% |
| Equity ratio | 56.6% | — | — |
| FY2/27 net guidance (¥bn) | 10.50 | 9.50 | +10.5% |
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.