ABC-Mart, Inc. (TSE: 2670), Japan's biggest shoe retailer, reported results for the first quarter of the fiscal year ending February 2027 — the three months to May 31, 2026. Net sales rose 8.0% to ¥105,483m, operating profit rose 8.3% to ¥20,316m, ordinary profit rose 10.3% to ¥21,030m and net profit attributable to owners of the parent rose 10.4% to ¥14,296m. Quarterly EPS was ¥57.74, up from ¥52.31.
Sales lifted by inbound demand and overseas rebound
The company said domestic demand rose gradually amid improving employment and income conditions, while a weaker yen drove a further increase in inbound spending from overseas visitors. Growth in running and walking shoes, high-priced national-brand sneakers and leather boots, plus a recovering overseas business, pushed both the top and bottom lines higher. Comprehensive income jumped 65.8% to ¥13,236m. The group opened 13 new stores and refurbished 25 in Japan and abroad during the quarter, bringing its total network to 1,508 stores.
Profit growth across the board
Every profit line advanced faster than a year earlier, when ordinary and net profit had slipped. Operating profit climbed 8.3%, ordinary profit 10.3% and net profit 10.4%, with the improvement helped by strong proper-price selling and a lower base in the prior-year overseas business.
Domestic and overseas segments
Domestic sales rose 7.2% to ¥77,953m and domestic segment profit rose 7.2% to ¥18,922m, with all-store sales up 7.3% and same-store sales up 6.5%. Overseas sales climbed 10.8% to ¥28,912m and overseas segment profit surged 29.2% to ¥1,387m as the business recovered. By market, South Korea grew 13.1% to ¥17,905m, Taiwan 14.5% to ¥3,821m and the United States 0.9% to ¥6,814m; the overseas store count stood at 393 (Korea 317, Taiwan 63, U.S. 7, Vietnam 4, Philippines 2).
Guidance unchanged, Q1 on track
ABC-Mart left its full-year forecast unchanged, saying results are progressing broadly as planned. For the year to February 2027 it still guides net sales of ¥400,800m (+5.9%), operating profit of ¥65,600m (+3.7%), ordinary profit of ¥67,400m (+0.4%) and net profit of ¥46,400m (+0.1%), for EPS of ¥187.39. The first quarter therefore covered about 31% of the full-year operating-profit target. The company kept its full-year dividend forecast at ¥80.00 (¥40.00 interim, ¥40.00 year-end), up from ¥75.00 a year earlier.
Balance sheet
Total assets stood at ¥466,840m and net assets at ¥404,332m, keeping the equity ratio at a high 86.0% (down from 87.5% at the prior year-end) as inventory rose ¥10,509m on stock building.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Net sales (¥m) | 105,483 | 97,698 | +8.0% |
| Operating profit (¥m) | 20,316 | 18,757 | +8.3% |
| Ordinary profit (¥m) | 21,030 | 19,062 | +10.3% |
| Net profit attrib. (¥m) | 14,296 | 12,953 | +10.4% |
| EPS (¥) | 57.74 | 52.31 | +10.4% |
| Equity ratio | 86.0% | 87.5% | −1.5pp |
| Dividend (¥, FY est.) | 80.00 | 75.00 | +6.7% |
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.