Halows Co., Ltd. (2742): FY2025 Results Summary — 38th Consecutive Year of Revenue Growth and Record Profit

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

Note: Halows Co., Ltd. does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company labels this period the fiscal year ended February 2026 (its 68th term); this site classifies the most recent completed fiscal year as FY2025, while the labels used in the text and tables follow the source materials.

In the results announced by Halows Co., Ltd. for the fiscal year ended February 2026 (the 68th term), operating revenue, operating profit, ordinary profit and net income all exceeded the prior year, producing higher sales, higher profit and record profit. Operating revenue, operating profit, ordinary profit, net income and net income per share all came in above the company’s earnings forecast. Through planned store openings the company achieved its 38th consecutive year of revenue growth, and in ordinary profit its 13th consecutive year of profit growth.

Consolidated Results (FY Ended February 2026, Actual)

Against the prior-year results, operating revenue was +7.10%, operating profit +1.66%, ordinary profit +2.15% and net income +0.84%. Although the gross profit margin declined because of rising prices, a strong top line held the increase in the ratio of selling, general and administrative expenses to sales to a slight rise, and the operating margin was maintained in the 5% range.

Item	Change vs. prior year
Operating revenue	+7.10%
Operating profit	+1.66%
Ordinary profit	+2.15%
Net income	+0.84%

The company continued 24-hour operation at all stores, and existing-store sales were +4.3% year on year while customer numbers were +2.4% year on year.

Number of Stores and Store Formats (As of the End of February 2026)

The company is expanding its store network with the 600-tsubo format as its standard, and as of the end of February 2026, 95 of its 113 stores were of the 600-tsubo format (84.1% of the total). By development type, NSC (neighborhood shopping center) type stores numbered 88 (77.9%) and FS type stores, opened by Halows alone, numbered 25 (22.1%).

Sales floor area	NSC type	FS type	Total	Ratio
600-tsubo type	75 stores	20 stores	95 stores	84.1%
450-tsubo type	11 stores	3 stores	14 stores	12.4%
300-tsubo type	2 stores	2 stores	4 stores	3.5%
Total	88 stores	25 stores	113 stores	100.0%

Earnings Forecast for the Fiscal Year Ending February 2027 (69th Term)

For the fiscal year ending February 2027 the company plans operating revenue of +8.8%, operating profit of +0.9%, ordinary profit of +0.1% and net income of ▲3.6%. It plans five new store openings and seven large-scale renovations of existing stores, and intends to continue 24-hour operation at all stores.

Item	Change vs. prior year (plan)
Operating revenue	+8.8%
Operating profit	+0.9%
Ordinary profit	+0.1%
Net income	▲3.6%

Shareholder Returns

On dividends, for the fiscal year ending February 2027 the company plans an interim dividend of 36 yen and a year-end dividend of 36 yen, for an annual dividend of 72 yen. Under its medium-term management plan, the “Setouchi 2814 Plan,” it has set a payout ratio target of 20% at the end of the plan period and a policy of stable dividends.

Item	FY Ending February 2027 (Forecast)
Interim dividend	36 yen
Year-end dividend	36 yen
Annual dividend	72 yen
Payout ratio target (end of medium-term plan)	20%

Medium-Term Management Plan and Long-Term Vision

Under its long-term vision, the “Western Japan 500 Billion Yen Concept,” the company aims for operating revenue of 500 billion yen, 250 stores, an annual growth rate of 5-10% and a net income margin of 3.5-4%. Under its medium-term management plan, the “Setouchi 2814 Plan” (a five-year plan covering the fiscal years ending February 2026 through February 2030), it targets operating revenue of 280 billion yen, ordinary profit of 14.8 billion yen, net income of 10.3 billion yen and a store network on the scale of 140 stores. It plans to allocate operating cash flow of approximately 84 billion yen (the funds available after 35 billion yen of investment in human capital) to investment in organic growth of 76 billion yen or more (approximately 60 billion yen for new stores, approximately 7 billion yen for logistics, approximately 7 billion yen for existing stores and approximately 2 billion yen for IT) and to shareholder returns and other uses.

The company reached 200 billion yen in sales in February 2025, and as of the end of February 2026 it operates all 113 of its stores 24 hours a day.

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.