Arcs Q1 Operating Profit Rises 5.9% to ¥4.1bn as Hokkaido Supermarket Sales Grow 2.7%

Arcs, the supermarket holding company that operates food chains across Hokkaido and northern Japan, posted first-quarter revenue up 2.7% to ¥158.48 billion and operating profit up 5.9% to ¥4.10 billion, keeping its full-year guidance and ¥82 dividend unchanged.

Arcs Arcs Group · TSE

Arcs Co., Ltd. (TSE/Sapporo: 9948), one of northern Japan's largest food-retail groups — operating supermarket banners including Ralse and Universe across Hokkaido and the Tohoku and Koshinetsu regions — reported first-quarter results for the three months to May 31, 2026. Under Japanese GAAP, consolidated revenue rose 2.7% to ¥158.48 billion, operating profit rose 5.9% to ¥4.10 billion, ordinary profit rose 5.6% to ¥4.47 billion and net profit attributable to owners rose 3.0% to ¥2.88 billion. EPS was ¥54.09, up from ¥51.85.

Steady food-retail demand

Modest sales growth reflected resilient grocery demand across the group's northern-Japan store network, while cost discipline lifted margins slightly. Comprehensive income was ¥2.17 billion, down 33.1% on lower valuation gains on securities holdings.

Balance sheet

Arcs retains one of the strongest balance sheets in the sector, with total assets of ¥302.88 billion, net assets of ¥195.92 billion and an equity ratio of 64.7%.

Dividend and outlook

The company kept its annual dividend guidance at ¥82 (¥41 interim plus ¥41 year-end). For the first half it guides revenue of ¥323.50 billion (+3.1%) and operating profit of ¥8.43 billion (+5.6%); for the full year to February 2027 it guides revenue of ¥648.00 billion (+3.4%), operating profit of ¥18.00 billion (+2.1%), ordinary profit of ¥19.60 billion (+2.3%) and net profit of ¥12.40 billion (−0.4%), for EPS of ¥232.73.

Arcs — Q1 FY2/2027 Key Financials (J-GAAP, consolidated)
MetricQ1 FY2/27Q1 FY2/26YoY
Revenue (¥m)158,479154,294+2.7%
Operating profit (¥m)4,1043,874+5.9%
Ordinary profit (¥m)4,4724,233+5.6%
Net profit attrib. (¥m)2,8812,798+3.0%
EPS (¥)54.0951.85+4.3%
Equity ratio64.7%65.2%−0.5pp
FY2/27 OP guidance (¥m)18,00017,626+2.1%

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.