TAKA-Q Co., Ltd. (TSE: 8166), a specialty retailer of men's suits, dress shirts and business-casual apparel operating a nationwide store chain, reported results for the first quarter (three months to May 31, 2026) of the fiscal year ending February 2027. On a non-consolidated basis, net sales fell 8.9% to ¥2,196m, operating profit fell 62.3% to ¥57m, ordinary profit fell 59.3% to ¥74m and quarterly net profit fell 74.1% to ¥46m. The company operates a single clothing-sales segment, so no segment breakdown is provided.
Sales weighed down by weak spring demand
Same-store sales fell 8.0% year on year. While refreshed core dress shirts and set-up (jacket-and-trousers) items held firm and real-store customer counts rose above the prior year, unseasonable weather during the quarter dampened demand for spring and summer goods. Sales of order suits, ready-made suits and cut-and-sewn tops were sluggish, and a deliberate narrowing of the e-commerce range as the company reviews that business's scale also weighed on the top line. By category, heavy clothing (suits and jackets) fell to ¥1,069m, medium clothing to ¥1,020m and other apparel to ¥62m, while light clothing edged up to ¥45m.
Profit falls as gross margin misses plan
Despite tight cost control — selling, general and administrative expenses fell 3.5% year on year to ¥1,356m — profit dropped sharply because the first-quarter gross margin came in below the company's initial assumptions. Gross profit fell 9.2% to ¥1,413m. Operating profit of ¥57m compared with ¥151m a year earlier, ordinary profit was ¥74m against ¥182m, and net profit was ¥46m against ¥176m.
Store network and balance sheet
TAKA-Q opened one T/Q store during the quarter, lifting the store count to 114 at the end of the period, up one from a year earlier. Total assets stood at ¥5,959m, down ¥96m from the prior year-end, while net assets rose ¥148m to ¥2,137m — helped by an increase in capital surplus — lifting the equity ratio to 35.9%. Interest-bearing long-term borrowings were unchanged at ¥1,618m.
Outlook and dividend
TAKA-Q left its full-year forecast for the fiscal year ending February 2027 unchanged from the guidance published on April 10, 2026, saying it will press ahead with its business-reconstruction plan aimed at a full revival of the company. The company plans preferred-share dividends of ¥0.90 on Class A shares and ¥10.00 on Class B shares for the full year.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Net sales (¥m) | 2,196 | 2,411 | −8.9% |
| Gross profit (¥m) | 1,413 | 1,557 | −9.2% |
| Operating profit (¥m) | 57 | 151 | −62.3% |
| Ordinary profit (¥m) | 74 | 182 | −59.3% |
| Net profit (¥m) | 46 | 176 | −74.1% |
| Stores (end of period) | 114 | 113 | +1 |
| Same-store sales | −8.0% | — | — |
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.