Watts (TSE: 2735), which operates "Watts" and "Silk" 100-yen shops in Japan and overseas, reported results for the first nine months of the fiscal year ending August 2026 — the period from September 1, 2025 to May 31, 2026. Sales rose 4.3% to ¥48,010m, operating profit rose 33.8% to ¥1,368m, ordinary profit rose 39.3% to ¥1,416m and net profit attributable to owners rose 36.4% to ¥808m. Nine-month EPS was ¥60.99, up from ¥44.97.
Profit growth far outpaces sales
Profit improved on solid same-store sales, new store openings and a better product mix at the company's 100-yen and variety outlets. Operating profit grew nearly eight times faster than sales, while ordinary profit climbed 39.3% to ¥1,416m and comprehensive income rose 42.1% to ¥836m. The stronger margin reflects tighter cost control alongside higher-value merchandise across the "Watts" and "Silk" store formats.
Balance sheet
Total assets stood at ¥26,674m as of May 31, 2026, while net assets rose to ¥13,628m. The equity ratio strengthened to 51.0% from 47.3% a year earlier, reflecting retained earnings from the improved result.
Dividend raised
Watts guided a full-year FY8/26 dividend totalling ¥23.00 per share — an interim of ¥10.50 and a year-end of ¥12.50, the latter including a ¥5.00 special dividend. That is up from ¥20.00 paid in FY8/25.
Full-year outlook unchanged
Watts left its full-year FY8/26 guidance intact, projecting sales of ¥63,000m (+2.3%), operating profit of ¥1,500m (+5.7%), ordinary profit of ¥1,500m (+5.0%) and net profit of ¥900m (+3.4%), for EPS of ¥68.01. The nine-month result already covers about 76% of the full-year sales target and 91% of the operating-profit target.
| Metric | 9M FY8/26 | 9M FY8/25 | YoY |
|---|---|---|---|
| Sales (¥m) | 48,010 | 46,012 | +4.3% |
| Operating profit (¥m) | 1,368 | 1,022 | +33.8% |
| Ordinary profit (¥m) | 1,416 | 1,017 | +39.3% |
| Net profit attrib. (¥m) | 808 | 592 | +36.4% |
| EPS (¥) | 60.99 | 44.97 | +35.6% |
| Equity ratio | 51.0% | 47.3% | +3.7pp |
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.