Toho Lamac Co., Ltd. (TSE: 7422), a wholesaler of footwear, reported first-half (interim) results for the six months to June 20, 2026 of its fiscal year ending December 2026 under Japanese GAAP on a non-consolidated basis. Revenue edged up 2.1% to ¥2,442 million, but gross profit fell 6.3% to ¥663 million. The operating loss narrowed to ¥11 million from ¥29 million a year earlier, while the ordinary loss widened to ¥53 million from ¥11 million. The net loss narrowed to ¥7 million from ¥13 million, and the basic loss per share improved to ¥1.39 from ¥2.56.
Real estate offsets soft footwear
The modest top-line gain masked a divergence between the company's two segments. Shoe sales, the core business, fell 7.6% to ¥2,171 million and posted a segment operating loss of ¥30 million, narrowing from a ¥42 million loss a year earlier. Real estate more than made up the difference: segment revenue surged 531.3% to ¥270 million and segment profit rose 43.9% to ¥18 million, lifted by rental growth and the handover of resale properties.
Within footwear, consumer belt-tightening amid inflation weighed on demand. Sneakers, sports-casual styles and hands-free (easy on/off) shoes held up well, but women's licensed brands were soft and men's shoes revenue slid 24.9%. The company's private brands — B.C.COMPANY, Fit Partner and CORE CUSHION — held up comparatively well.
Margins squeezed by a weaker yen
Gross profit fell despite the revenue gain, as a weaker yen raised the cost of imported footwear and compressed the gross margin. That squeeze, combined with the shift in sales mix, kept the shoe segment in the red even as the overall operating loss narrowed to ¥11 million.
One-off items weigh on the ordinary line
The ordinary loss widened to ¥53 million even as the operating loss shrank, reflecting non-operating expenses that included a valuation loss on crypto-asset holdings and costs tied to a special investigation. Below the ordinary line, a reversal of the reserve for directors' retirement benefits was booked as an extraordinary gain, which helped limit the net loss to ¥7 million. The balance sheet remained solid: total assets stood at ¥6,698 million and net assets at ¥4,463 million, for an equity ratio of 66.6%.
Full-year guidance unchanged
Toho Lamac left its full-year forecasts unchanged from the guidance issued on January 30, 2026. For the fiscal year ending December 2026 it continues to project revenue of ¥5,104 million (+12.2%), operating profit of ¥88 million, ordinary profit of ¥88 million and net profit of ¥71 million (+306.2%), with EPS of ¥13.95. The company also kept its annual dividend forecast at ¥11.40 per share (¥5.70 interim and ¥5.70 year-end), flat year on year.
| Metric | H1 FY12/2026 | H1 FY12/2025 | YoY |
|---|---|---|---|
| Revenue (¥M) | 2,442 | 2,392 | +2.1% |
| Gross profit (¥M) | 663 | 707 | -6.3% |
| Operating loss (¥M) | -11 | -29 | — |
| Ordinary loss (¥M) | -53 | -11 | — |
| Net loss (¥M) | -7 | -13 | — |
| Basic EPS (¥) | -1.39 | -2.56 | — |
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.