Joshin Corporation (8173): FY2025 Results Summary — Record EC Sales Drive Profit Growth Despite a Net Income Decline

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Joshin Corporation (8173) reported consolidated net sales of ¥436,650 million for the fiscal year ended March 31, 2026 (FY2025), up 8.3% year on year and 8.1% above the company’s initial forecast. Operating income rose 47.0% to ¥5,422 million, supported by growth in mobile phone, entertainment, and air conditioner sales alongside record EC business sales, while net income attributable to owners of parent declined 3.7% year on year to ¥3,280 million even as it exceeded the company’s initial forecast by 17.2%. For the fiscal year ending March 31, 2027 (FY2026), the company forecasts net sales of ¥438,000 million and operating income of ¥6,000 million.

Consolidated Results (Full-Year Actual)

Full-year net sales reached ¥436,650 million (100.0% of net sales), comprising ¥354,911 million (81.3% of net sales) in sales at stores, up 9.2% year on year, and a record ¥79,004 million (18.1% of net sales) in EC business sales, up 14.2% year on year. Gross profit increased 5.5% to ¥107,787 million (24.7% of net sales), while selling, general and administrative (SG&A) expenses rose 3.9% to ¥102,365 million (23.4% of net sales), including personnel expenses of ¥39,295 million, rent and ground rent of ¥11,767 million, logistics expenses of ¥14,731 million, and advertising expenses of ¥6,985 million. Operating income rose 47.0% year on year to ¥5,422 million (1.2% of net sales), and ordinary income rose 46.5% to ¥5,113 million (1.2% of net sales). Net income attributable to owners of parent decreased 3.7% year on year to ¥3,280 million (0.8% of net sales).

Item (Million yen)	FY2025 Actual	% of net sales	FY2024 Actual	% of net sales	YoY
Net sales	436,650	100.0%	403,259	100.0%	+8.3%
Of which, sales at stores	354,911	81.3%	325,001	80.6%	+9.2%
Of which, sales in EC business	79,004	18.1%	69,157	17.1%	+14.2%
Gross profit	107,787	24.7%	102,212	25.3%	+5.5%
Selling, general and administrative expenses	102,365	23.4%	98,524	24.4%	+3.9%
Operating income	5,422	1.2%	3,688	0.9%	+47.0%
Ordinary income	5,113	1.2%	3,491	0.9%	+46.5%
Net income (attributable to owners of parent)	3,280	0.8%	3,407	0.8%	(3.7%)

Segment Results (Sales by Product Category)

By product category for the full year, entertainment products (music, video, games, models, musical instruments, etc.) posted the largest year-on-year increase, up 22.5% to ¥69,066 million (15.8% of net sales), followed by personal computers, up 21.7% to ¥24,308 million (5.6% of net sales), and mobile phones, up 13.8% to ¥55,904 million (12.8% of net sales). Air conditioners increased 10.9% to ¥46,523 million (10.7% of net sales), while refrigerators declined 0.3% year on year to ¥23,909 million (5.5% of net sales).

Product Category	FY2025 Actual (Million yen)	% of net sales	FY2024 Actual (Million yen)	% of net sales	YoY
TVs	25,548	5.8%	25,155	6.2%	+1.6%
Refrigerators	23,909	5.5%	23,988	5.9%	(0.3%)
Washing machines and vacuum cleaners	36,222	8.3%	35,847	8.9%	+1.0%
Microwave ovens and cookers	18,334	4.2%	17,096	4.2%	+7.2%
Air conditioners	46,523	10.7%	41,947	10.4%	+10.9%
Personal computers	24,308	5.6%	19,981	5.0%	+21.7%
Mobile phones	55,904	12.8%	49,110	12.2%	+13.8%
Games, models, toys, musical instruments	69,066	15.8%	56,387	14.0%	+22.5%

Store Network

As of the end of March 2026, Joshin operated a total of 220 stores (217 directly managed and 3 franchise stores). During FY2025, the company opened new stores in Tokyo, Aichi (two locations), and Nagano, and closed stores in Kyoto and Osaka, as part of its strategy to advance the Joshin Group’s dominant strategy by opening new stores outside the Kansai region.

FY2026 Forecast

For the fiscal year ending March 31, 2027 (FY2026), Joshin forecasts consolidated net sales of ¥438,000 million, up 0.3% year on year, comprising ¥352,000 million (80.4% of net sales) in sales at stores, down 0.8%, and ¥81,000 million (18.5% of net sales) in EC business sales, up 2.5%. Gross profit is forecast to increase 6.2% to ¥114,500 million (26.1% of net sales), and SG&A expenses are forecast to rise 6.0% to ¥108,500 million (24.8% of net sales). Operating income is forecast to increase 10.7% to ¥6,000 million (1.4% of net sales), ordinary income is forecast to increase 7.6% to ¥5,500 million (1.3% of net sales), and net income attributable to owners of parent is forecast to increase 6.7% to ¥3,500 million (0.8% of net sales).

Item (Million yen)	FY2026 Forecast	% of net sales	YoY	FY2025 Actual	% of net sales
Net sales	438,000	100.0%	+0.3%	436,650	100.0%
Of which, sales at stores	352,000	80.4%	(0.8%)	354,911	81.3%
Of which, sales in EC business	81,000	18.5%	+2.5%	79,004	18.1%
Gross profit	114,500	26.1%	+6.2%	107,787	24.7%
Selling, general and administrative expenses	108,500	24.8%	+6.0%	102,365	23.4%
Operating income	6,000	1.4%	+10.7%	5,422	1.2%
Ordinary income	5,500	1.3%	+7.6%	5,113	1.2%
Net income (attributable to owners of parent)	3,500	0.8%	+6.7%	3,280	0.8%

Shareholder Returns

Joshin paid an annual dividend of 100 yen per share for FY2025, unchanged from FY2024, for a payout ratio of 78.9%, up from 76.3% the previous year. Under its shareholder return policy, the company targets a payout ratio of 40% or higher and a dividend on equity (DOE) ratio of 2.5% or higher, and plans to allocate approximately 70-75% of operating cash flow to growth investments and approximately 15-20% to shareholder returns, with the remainder used to reduce interest-bearing debt. The presentation does not disclose a specific per-share dividend forecast for FY2026.

Fiscal Year	Dividend per Share (yen)	Payout Ratio	DOE
FY2022	75 yen	40.2%	2.0%
FY2023	90 yen	48.4%	2.3%
FY2024	100 yen	76.3%	2.5%
FY2025	100 yen	78.9%	2.5%

JT-2028 Management Plan

Joshin launched its new JT-2028 Management Plan (FY2026-FY2028), targeting operating income of 10 billion yen or more and ROE of 7.0% or higher by FY2028, alongside a payout ratio of 40% or higher and a DOE of 2.5% or higher. In its review of the preceding JT-2025 Management Plan, the company reported that net sales of 4,367 (100 million yen) exceeded the FY2025 Plan target of 4,200 (100 million yen), but operating income of 55 (100 million yen) missed the FY2025 Plan target of 110 (100 million yen), and ROE of 3.1% fell short of the 8.0%-or-higher target; the company stated that although revenue exceeded projections, capital efficiency metrics, including operating profit margin and ROE, all fell short of targets. Key strategies under JT-2028 include closing up to 15 unprofitable real stores, full-scale entry into private-label (PB) products, expansion of the EC business toward a 50% sales ratio via the company’s proprietary site, and expansion of the renovation business through Joshin Reform Kinki.

Topics

During FY2025, Joshin acquired DO Reform as a subsidiary; the company subsequently changed its name to Joshin Reform Kinki Co., Ltd. and began considering collaboration with the HOUSE DO Group, as part of Joshin’s strategy to expand from packaged renovations into custom-made renovation services. Joshin’s EC store also received the Overall Grand Prix at the Rakuten Shop of the Year 2025 awards, its fourth time winning the award, and ranked first in the newly established smartphone category at the Yahoo! Auctions Best Store Awards 2025.

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.