Sanyo Shokai Ltd. (TSE: 8011), the Japanese apparel maker behind the Mackintosh, Mackintosh London, Paul Stuart, Epoca and Sanyo Coat brands — and the former Japan licensee for Burberry — opened its fiscal year ending February 2027 with a sharp recovery in profitability. For the first quarter (March 1–May 31, 2026) under Japanese GAAP, consolidated revenue was essentially flat, edging up 0.6% year-on-year to ¥14,594 million, but operating profit more than tripled, surging 210.5% to ¥113 million, ordinary profit jumped 313.0% to ¥103 million and net profit attributable to owners climbed 191.1% to ¥106 million. EPS rose to ¥10.62 from ¥3.44.
Mix and cost control triple a thin first-quarter profit
With revenue broadly unchanged, the profit surge came from tighter cost control and an improved product and brand mix rather than top-line growth — lifting margins off a low first-quarter base. The balance sheet remains very solid, with total assets of ¥56,947 million, net assets of ¥38,915 million and an equity ratio of 68.3%, leaving the company comfortably capitalised as it pursues its turnaround.
Dividend raised and 3-for-1 split
Sanyo Shokai will carry out a 3-for-1 common-stock split effective September 1, 2026. On a pre-split basis, it guides a full-year FY2/2027 dividend of ¥184 per share (¥76 interim plus ¥108 year-end) — a meaningful increase from ¥139 a year earlier (¥69 interim plus ¥70 year-end).
Full-year outlook
For full-year FY2/2027, Sanyo Shokai guides revenue of ¥60,000 million (+2.7%), operating profit of ¥2,100 million, ordinary profit of ¥2,000 million and net profit of ¥4,020 million (−2.3%), for EPS of ¥136.13 on a post-split basis (¥408.39 before the split). Full-year net profit (¥4.02 billion) is guided above operating profit because of expected extraordinary and non-operating gains.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Revenue (¥bn) | 14.59 | 14.51 | +0.6% |
| Operating profit (¥m) | 113 | 36 | +210.5% |
| Ordinary profit (¥m) | 103 | 25 | +313.0% |
| Net profit attrib. (¥m) | 106 | 36 | +191.1% |
| EPS (¥) | 10.62 | 3.44 | +208.7% |
| Equity ratio | 68.3% | 68.3% | ±0.0pp |
| FY2/27 net guidance (¥bn) | 4.02 | 4.12 | −2.3% |
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.