Primo Global Lifts Nine-Month Revenue 13.6% as Platinum Cost Surge Squeezes Bridal Ring Margins

Primo Global Holdings Co., Ltd. (TSE: 367A), the Tokyo-listed bridal and fine jewellery group led by President Naoki Sawano, reported consolidated results under IFRS for the first nine months of the fiscal year ending August 2026 (September 1, 2025 – May 31, 2026). Revenue rose 13.6% to ¥23,267 million, operating profit 18.4% to ¥2,906 million and profit before tax 20.6% to ¥2,605 million. Profit for the period, all attributable to owners of the parent, advanced a more modest 7.0% to ¥1,758 million, for basic earnings per share of ¥201.00 against ¥187.80 a year earlier. Total comprehensive income more than doubled to ¥3,688 million, up 110.1%.

Platinum costs run ahead of the price campaign

The gap between the 18.4% operating-profit gain and the 7.0% rise in bottom-line profit points to the quarter's central issue: input costs. Surging precious-metal prices — platinum in particular, the workhorse metal of Japanese engagement and marriage rings — pushed the group's raw-material bill sharply higher. Primo Global has been raising product prices in stages and running cost-improvement programmes to absorb the increase, but in the third quarter the metal-price rise moved faster than those measures, so the gross margin fell. Management expects the margin to trend back up from the fourth quarter onward as the announced price revisions and cost work take full effect. Diluted EPS of ¥190.87 also introduced a first genuine gap to the basic figure; a year earlier the two were identical because the outstanding share options were conditional on listing and therefore non-dilutive.

Domestic: record revenue at every LAZARE DIAMOND store

The Domestic segment delivered revenue of ¥14,780 million, up 14.8%, and segment profit of ¥2,118 million, up 10.6% from ¥1,914 million. Price revisions lifted average spend per customer while customer counts held up well — an unusually clean combination in a discretionary category. LAZARE DIAMOND posted record revenue across all of its stores. In April the group acquired the right to procure the diamonds used in its products directly from Lazare Kaplan, strengthening the brand's operating structure in Japan; the stated aim is to speed decision-making across the whole procurement-to-sale chain and lift profitability through a better gross margin — a notable move given the metal-cost squeeze on the other side of the bill of materials. Also in April, Primo Global relocated and reopened the "Lazare Diamond Boutique Quartz Shinsaibashi" store and staged a "DIAMOND CAFE" pop-up in Omotesando to raise brand awareness. In May it launched two new marriage-ring collections, "GCT" and "TRANSIT", themed on time and travel, at boutiques nationwide. Product differentiation rests on "PRIMO QUALITY DIAMOND" stones for I-PRIMO engagement rings, quality-supervised from the production process, a proprietary comfort-fit method and a proprietary new alloy branded "pale brown gold"; the group is also expanding its anniversary jewellery range.

Overseas: China openings and a Malaysian debut

Overseas revenue rose 11.6% to ¥8,489 million and segment profit jumped 46.1% to ¥788 million from ¥539 million — the fastest-growing profit pool in the group. Overseas now accounts for 36.5% of revenue and 27.1% of segment profit, leaving room for the margin gap to close further. The five overseas subsidiaries operate across Greater China (mainland China, Taiwan and Hong Kong), Singapore and Malaysia. In mainland China, following a November 2025 opening in Zhengzhou, the group opened its third Beijing store, "I-PRIMO Beijing China World Mall Store", and its third Hangzhou store, "I-PRIMO Hangzhou Westlake 66 Store", in April. In Malaysia — a new Southeast Asian market — it prepared its first I-PRIMO store, which opened in June, and added a new consolidated subsidiary, Primo Diamond Malaysia Sdn. Bhd. Inter-segment revenue is immaterial at ¥1–2 million and is eliminated; segment profit is stated on an operating-profit basis.

Balance sheet strengthens; dividend forecast held at ¥120

Total assets grew to ¥50,231 million from ¥45,949 million at the previous fiscal year-end, while total equity — all attributable to owners of the parent — rose to ¥20,329 million from ¥18,052 million. The ratio of equity attributable to owners of the parent improved to 40.4% from 39.2%, and equity per share to ¥2,317.27 from ¥2,060.58. Operating cash flow was broadly flat at +¥2,820 million versus +¥2,843 million, investing cash flow widened to −¥1,287 million from −¥150 million as the store and procurement investments landed, and financing outflows narrowed to −¥2,109 million from −¥2,979 million. Cash and equivalents ended the period at ¥3,191 million against ¥2,919 million a year earlier. On dividends, the group paid a ¥60.00 interim for FY8/2026 and forecasts a ¥60.00 year-end for an annual ¥120.00, unchanged from the previous announcement and up from ¥105.00 in FY8/2025, which was paid entirely as a year-end dividend.

Guidance unchanged with roughly 80% of the year banked

Full-year FY8/2026 guidance is unchanged: revenue of ¥30,000 million (+7.1%), operating profit of ¥3,650 million (+16.5%), pre-tax profit of ¥3,200 million (+17.1%) and profit attributable to owners of the parent of ¥2,170 million (+21.5%), for basic EPS of ¥248.08. The arithmetic leaves the company comfortably positioned: nine-month revenue of ¥23,267 million is 77.6% of the full-year target and nine-month operating profit of ¥2,906 million is 79.6% of its target, with the seasonally significant fourth quarter still to come. Management framed the operating environment as a gradual recovery in the Japanese economy, with personal consumption picking up on improving employment and income, while flagging price trends and developments in the Middle East as items warranting continued attention.

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.