Studio Alice Co., Ltd. (TSE: 2305) reported consolidated first-quarter results for the fiscal year ending February 2027, covering March 1 to May 31, 2026, under Japanese GAAP. Revenue fell 3.8% to ¥7,546 million, but operating profit rose 8.5% to ¥229 million and ordinary profit rose 6.3% to ¥241 million. Net profit attributable to owners of the parent fell 29.0% to ¥111 million, and basic EPS declined to ¥6.59 from ¥9.28. Comprehensive income fell 34.5% to ¥158 million.
A seasonally light quarter
The March–May quarter is structurally the weakest of Studio Alice's year. The company states plainly that group revenue is concentrated around the shichi-go-san season in and around November, leaving the business heavily weighted to the second half — so much so that it declines to publish first-half guidance at all, calling an interim forecast "extremely difficult." Q1 revenue of ¥7,546 million represents roughly 22% of the ¥33,600 million full-year target, and Q1 operating profit of ¥229 million is under 10% of the ¥2,450 million annual goal. Judging the year off this quarter would be misleading.
Margins improved even as sales fell
Cost of sales fell faster than revenue — down to ¥6,010 million from ¥6,322 million — so gross profit actually rose to ¥1,537 million from ¥1,522 million despite the top-line decline, and SG&A was held roughly flat at ¥1,307 million. Depreciation dropped to ¥701 million from ¥793 million. The prior-year quarter also carried a ¥22.8 million store impairment charge that did not recur this year. The 29% net-profit drop is therefore a tax artefact, not an operating one: the year-earlier quarter benefited from a ¥74.8 million deferred tax credit that cut its effective tax rate to about 21%, whereas this quarter's total tax charge of ¥127 million against ¥239 million of pre-tax profit implies roughly 53%.
Photo studios and costume wholesale
The core photo business generated revenue of ¥7,494 million (-3.8%) with segment profit up 23.5% to ¥232 million. Within it, studio sales were ¥6,624 million versus ¥6,819 million a year earlier, and other photo-related sales ¥864 million versus ¥966 million. The company pushed bookings for its Furiho coming-of-age kimono rental service, promoted seasonal Doll's Festival and Boys' Festival shoots plus school-entry and graduation portraits, and on April 29 launched its early-bird shichi-go-san campaign and outing-kimono rental reservations. The smaller costume manufacturing and wholesale segment — run through subsidiary Kyoto Housho and its Shanghai unit — saw revenue fall 20.2% to ¥424 million and segment profit fall 12.8% to ¥56 million amid raw-material cost inflation.
Store network and balance sheet
Studio Alice ended the quarter with 406 children's photo studios — 397 directly operated and 9 franchised — after one relocation and one closure, alongside 25 refurbishments including in-mall floor moves. Total assets edged up ¥170 million to ¥38,563 million, while net assets fell ¥691 million to ¥29,538 million on the payment of the prior year's dividend, trimming the equity ratio to 76.6% from 78.7%. Liabilities rose ¥861 million to ¥9,025 million, driven by a ¥600 million short-term borrowing drawn during the quarter.
Guidance and dividend unchanged
Management reaffirmed the full-year forecast issued on April 14, 2026: revenue of ¥33,600 million (+2.0%), operating profit of ¥2,450 million (+16.9%), ordinary profit of ¥2,450 million (+13.4%) and net profit of ¥1,250 million (+7.6%), for EPS of ¥73.60. The annual dividend forecast is held at ¥50.00 per share (no interim payment, ¥50.00 at year-end), matching FY2/2026. No material subsequent events were disclosed, and there were no changes to the scope of consolidation or to accounting policies.
| Metric | Q1 FY2/2027 | Q1 FY2/2026 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 7,546 | 7,844 | -3.8% |
| Operating profit (¥ million) | 229.9 | 211.9 | +8.5% |
| Ordinary profit (¥ million) | 241.4 | 227.2 | +6.3% |
| Net profit attrib. to owners (¥ million) | 111.9 | 157.6 | -29.0% |
| Basic EPS (¥) | 6.59 | 9.28 | -29.0% |
| Photo segment revenue (¥ million) | 7,494 | 7,790 | -3.8% |
| Photo segment profit (¥ million) | 231.9 | 187.8 | +23.5% |
| Costume wholesale revenue (¥ million) | 423.6 | 530.8 | -20.2% |
| Total assets (¥ million) | 38,563 | 38,393 | +0.4% |
| Equity ratio (%) | 76.6 | 78.7 | -2.1 pt |
| Photo studios (stores) | 406 | — | — |
| FY2/2027 revenue guidance (¥ million) | 33,600 | — | +2.0% |
| FY2/2027 operating profit guidance (¥ million) | 2,450 | — | +16.9% |
| Annual dividend forecast (¥) | 50.00 | 50.00 | Flat |
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.