ABC-MART (2670): FY2025 Results Summary — Record Sales and a Fifth Straight Year of Revenue and Profit Growth

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: ABC-MART’s fiscal year ends in February. The latest completed fiscal year ran from March 1, 2025 to February 28, 2026, and the company labels it “FY2/26” or the “Fiscal Year Ended February 2026” in its materials; this site classifies it as FY2025. Figures and period labels below follow the company’s presentation. The company’s full-year briefing materials consist of three documents (results summary, strategic plan, and financial forecast), and dividend figures are taken from its English-language consolidated financial results release.

ABC-MART, Inc. reported record consolidated net sales of ¥378.6 billion for the fiscal year ended February 2026, up 1.7% year on year, marking five straight years of growth in revenue and profit. Consolidated operating income reached ¥63.2 billion, up 1.2%, and consolidated ordinary income reached ¥67.1 billion, up 3.9%. Domestic sales grew on strong existing-store performance and inbound demand, while overseas sales declined on the yen’s appreciation against the won and worsening market conditions in South Korea and the U.S.

Consolidated Results (Full-Year Actual)

The consolidated gross profit margin was 50.7%, up 0.2pt year on year, helped by an improvement in the domestic Q4 gross profit margin; the standalone (non-consolidated) gross profit margin reached 54.2% (up 0.3pt), while the overseas gross profit margin stood at 41.3% (down 1.8pt). The consolidated SG&A expense ratio was 34.0% (up 0.3pt), an increase of ¥3.3 billion in monetary terms, mainly on higher personnel expenses, rent expenses, and payment processing fees. Net income attributable to owners of the parent was ¥46,346 million, up 2.2%, and EPS was ¥187.17.

Item (million JPY)	FY2/26 (ended Feb. 2026)	FY2/25 (ended Feb. 2025)	YoY
Net Sales	378,624	372,202	+1.7%
Gross Profit	191,909 (50.7% of sales)	187,816 (50.5% of sales)	+2.2%
SG&A Expenses	128,621 (34.0% of sales)	125,265 (33.7% of sales)	+2.7%
Operating Profit	63,287 (16.7% of sales)	62,550 (16.8% of sales)	+1.2%
Ordinary Profit	67,156 (17.7% of sales)	64,618 (17.4% of sales)	+3.9%
Net income attributable to owners of the parent	46,346 (12.2% of sales)	45,358 (12.2% of sales)	+2.2%
EPS	¥187.17	–	–

Operationally, the group opened 64 new stores (33 domestic, 31 overseas) and closed 58, ending the year with 1,505 group stores (1,107 domestic and 398 overseas); the company entered the Philippines in October, opening 2 stores. Domestic ABC-MART existing-store sales rose 4.6% for the full year, with customer count up 1.5% and average purchase price up 3.1%. Domestic digital sales (ABC-MART only) grew 7.4%, lifting the digital sales ratio to 10.6% (up 0.2pt). By category, consolidated Sports net sales amounted to ¥213.8 billion with a sales composition ratio of 56.5% (up 0.4pt), while Apparel sales reached ¥28.7 billion (up 17.9%) and Kids sales were ¥31.0 billion (up 11.1%).

On the balance sheet, consolidated total assets stood at ¥455,202 million and total net assets at ¥401,000 million at fiscal year-end, with inventory of ¥106.5 billion, up ¥15.0 billion from the previous fiscal year-end (domestic +¥9.6 billion, overseas +¥5.4 billion). The cash and cash equivalents balance was ¥207.1 billion, up ¥9.5 billion year on year, with operating cash flow of +¥41.8 billion, investing cash flow of -¥15.4 billion, and financing cash flow of -¥18.3 billion, the last of which included dividend payments of ¥17.8 billion.

Segment Results

Domestic net sales rose 5.4% to ¥273,164 million (72.1% of consolidated net sales) and domestic operating profit grew 6.3% to ¥56,441 million. Overseas net sales fell 4.5% to ¥111,378 million (29.4% of consolidated net sales) and overseas operating profit dropped 25.8% to ¥7,031 million. In South Korea (before consolidation adjustments), net sales were ¥69,659 million, down 4.7% in yen terms but up 0.3% in local currency (KRW 658,409 million), and operating profit fell 26.5% to ¥4,731 million (down 22.6% in local currency), with the P/L exchange rate at ¥10.58 per 100 won versus ¥11.13 a year earlier. Taiwan net sales rose 1.1% year on year (NT$2.5 billion in local currency), while U.S. net sales fell 7.3% to ¥29 billion (US$192 million in local currency).

Segment	Metric (million JPY)	FY2/26	FY2/25	YoY
Domestic	Net Sales	273,164	259,095	+5.4%
Overseas	Net Sales	111,378	116,605	-4.5%
Consolidated	Net Sales	378,624	372,202	+1.7%
Domestic	Operating Profit	56,441	53,096	+6.3%
Overseas	Operating Profit	7,031	9,471	-25.8%
Consolidated	Operating Profit	63,287	62,550	+1.2%
South Korea (before consolidation adjustments)	Net Sales	69,659	73,086	-4.7%
South Korea (before consolidation adjustments)	Operating Profit	4,731	6,434	-26.5%

Forecast for the Fiscal Year Ending February 2027 (FY2/27)

For the fiscal year ending February 28, 2027, the company targets consolidated net sales of ¥400.8 billion, up 5.9% year on year (figures below are from the companion document “Financial Forecast for the Fiscal Year Ending February 2027”). Domestic net sales are planned at ¥282.0 billion with 1,128 stores and overseas net sales at ¥118.8 billion with 406 stores, including South Korea at ¥76.5 billion (up 9.9%), the USA at ¥32.2 billion (up 11.2%), and Taiwan at ¥13.3 billion (up 11.3%). Currency assumptions are ¥10.8 per 100 won, ¥155 per U.S. dollar, and ¥5.0 per New Taiwan dollar, all weaker-yen assumptions versus the previous period. The consolidated gross profit margin is forecast at 50.5%, down 0.2pt, reflecting lower profitability in overseas operations, and forecast EPS is ¥187.39.

Item (million JPY)	FY2/27 Forecast	FY2/26 Actual	YoY
Net Sales	400,800	378,624	+5.9%
Gross Profit	202,400 (50.5% of sales)	191,909 (50.7% of sales)	+5.5%
SG&A Expenses	136,800 (34.1% of sales)	128,621 (34.0% of sales)	+6.4%
Operating Profit	65,600 (16.4% of sales)	63,287 (16.7% of sales)	+3.7%
Ordinary Profit	67,400 (16.8% of sales)	67,156 (17.7% of sales)	+0.4%
Net income attributable to owners of parent	46,400 (11.6% of sales)	46,346 (12.2% of sales)	+0.1%

Shareholder Returns

The annual dividend for the fiscal year ended February 28, 2026 was ¥75.00 per share (interim ¥35.00, year-end ¥40.00), up from ¥70.00 for the previous fiscal year, with total cash dividends of ¥18,571 million and a consolidated payout ratio of 40.1%. For the fiscal year ending February 28, 2027, the company forecasts an annual dividend of ¥80.00 per share (interim ¥40.00, year-end ¥40.00), for a forecast consolidated payout ratio of 42.7%. Dividend figures are as stated in the company’s English-language consolidated financial results release; share buybacks cannot be confirmed from the materials.

Item	FY2/26	FY2/25	FY2/27 (Forecast)
Interim dividend per share	¥35.00	¥33.00	¥40.00
Year-end dividend per share	¥40.00	¥37.00	¥40.00
Annual dividend per share	¥75.00	¥70.00	¥80.00
Total cash dividends (million JPY)	18,571	17,333	–
Payout ratio (consolidated)	40.1%	38.2%	42.7%

FY2/27 Strategy / Topics

In the companion document “Strategic Plan for the Fiscal Year Ending February 2027,” the company states that it transitioned to a new executive framework starting March 2026, designed to respond with greater agility to rapidly shifting consumer behaviors. It plans to continue leveraging its frontline capabilities (Genba-ryoku) while further reinforcing specialized brand and category strategies, and to accelerate its growth trajectory in international markets, specifically focusing on expanding profitability in South Korea and scaling its presence in the high-growth Southeast Asian region. In the domestic business, the company strengthened store development for the Grand Stage and ABC-MART SPORTS formats during the year under review and accelerated the opening of multi-format stores to capture a diverse customer base.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.