4°C Owner Yondoshi H1 Operating Profit More Than Doubles as Jewelry and Luxury-Watch Resale Surge; Sales Forecast Raised

Jewelry and watch resale drive the half

Yondoshi Holdings Inc. (TSE: 8008), the Tokyo-based owner of the 4°C jewelry brand, reported consolidated results for the first half of FY2/2027, the six months from March 1 to August 31, 2026, on October 9, 2026 under Japanese GAAP. Net sales rose 21.5% to ¥39,442 million, operating profit 141.0% to ¥2,709 million and ordinary profit 119.2% to ¥2,871 million. Net profit attributable to owners of the parent rose 99.2% to ¥1,557 million, or ¥72.50 per share against ¥36.41. Operating profit before goodwill amortization, which the company treats as a key indicator, rose 90.8% to ¥3,337 million.

Gross profit grew 14.9% to ¥12,387 million, while selling, general and administrative expenses were almost flat at ¥9,677 million. Part of the improvement was one-off: after moving current employees to a defined-contribution plan, an apparel subsidiary began expensing actuarial differences on its closed defined-benefit pension in a single year, which cut retirement-benefit costs and lifted operating profit by ¥452 million. The company booked ¥158 million of impairment losses and a ¥36 million loss on terminating a retirement-benefit plan as special losses.

Brand and apparel

The brand segment, centred on F.D.C. Products' 4°C jewelry business, grew sales 33.9% to ¥26,579 million and segment profit 143.4% to ¥2,175 million, as merchandising reforms and channel strategy lifted existing-store sales and the luxury-watch resale subsidiary widened its range, sharply increasing both sales and profit. The apparel segment grew sales 1.9% to ¥12,863 million and profit 30.6% to ¥1,033 million; a weak yen and higher costs weighed, but the lower pension expense and new stores and events at the Palette daily-fashion chain helped.

Balance sheet and outlook

Total assets rose 2.1% to ¥70,276 million from the end of February, mainly on higher inventories, and net assets 2.5% to ¥42,088 million, for an equity ratio of 59.9%. Short-term borrowings rose ¥1,900 million, operating cash flow was an outflow of ¥195 million, and cash and cash equivalents ended August at ¥1,568 million. The interim dividend rises to ¥42.50 from ¥41.50, with an annual ¥85 planned against ¥83.

Reflecting the first half, the company raised its full-year net sales forecast to ¥77,000 million (+10.1%) from ¥75,000 million, but kept operating profit at ¥4,300 million (+53.4%), ordinary profit at ¥4,600 million (+45.4%) and net profit at ¥2,650 million (+47.9%), citing the business environment and planned investment. FY2/2027 is the final year of its seventh medium-term management plan.

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.