SHIMAMURA (8227): FY2025 Results Summary — Record Highs in Net Sales and All Profit Lines

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

Note: SHIMAMURA closes its books in February and labels the year ended February 20, 2026 as “FY2/26”. Under this site’s convention that year is classified as FY2025, but the company’s own year labels (FY2/26, FY2/27) are kept in the text, tables and slides below.

SHIMAMURA Co., Ltd. reported record highs in net sales, gross profit, operating income and net income for FY2/26, the fiscal year ended February 20, 2026. Net sales rose 5.2% year on year to 700,034 million yen, operating income was 61,483 million yen (YoY 103.8), and net income attributable to owners of parent was 44,460 million yen (YoY 106.1). Net sales and all profit line items achieved the plan, with the gross profit margin improving to 34.8% on better pricing. For FY2/27 the company forecasts net sales of 729,193 million yen and operating income of 66,842 million yen, and has raised the numerical targets of its Medium-term Management Plan 2027.

Consolidated Results (Full-Year Actual)

According to the results presentation, net sales and all profit line items achieved the plan. The gross profit margin improved, driven by better pricing, while the SG&A ratio was generally controlled in line with the plan despite increases in personnel expenses and freight costs. On external factors, the company notes that inbound consumption by visitors to Japan was at a record high level and activity in high-priced goods and experience-based products increased on the back of higher wages, but intermittent price hikes for daily necessities were a burden on households, and the environment for apparel sales remained challenging as consumers remained thrifty. The record-breaking heat wave that lasted into early fall lifted summer goods but delayed the start of fall and early winter goods; temperatures dropped from November onward, and demand for winter goods, especially winter protective goods, remained strong thereafter.

Item (million yen / %)	FY2/26	Ratio to sales	YoY	FY2/25
Net sales	700,034	100.0	105.2	665,358
Gross profit	243,904	34.8	105.6	230,882
SG&A	183,771	26.2	106.2	173,026
Operating income	61,483	8.8	103.8	59,240
Ordinary income	63,672	9.1	105.1	－
Net income attributable to owners of parent	44,460	6.4	106.1	41,885
Net income per share	202.36yen	－	－	－

The company notes that a 3-for-1 stock split was conducted on February 21, 2026, and that net income per share for FY2/26 has been calculated assuming that these stock splits were effected at the beginning of the fiscal year. Within SG&A, total personnel expenses rose 8.1% year on year to 96,521 million yen on wage increases and hiring (wages up 4.37% for full-time employees and 4.1% for regular employees), advertising expenses rose 2.7% to 11,816 million yen on the reinforcement of priority events, and total SG&A expenses rose 6.2% to 183,771 million yen. On the balance sheet, total assets fell 2.2% year on year to 554,667 million yen, mainly due to the repurchase of treasury stock conducted on January 27, total liabilities edged down 0.1% to 66,121 million yen, and total net assets were 488,545 million yen, equivalent to 88.1% of total liabilities and net assets.

Segment Results (Sales by Business)

Net sales exceeded the previous year across all businesses, both in Japan and overseas. Domestic net sales increased 5.0% year on year, and the Si meng le business in Taiwan grew 17.3%.

Business (million yen / %)	FY2/26	Composition ratio	YoY
Shimamura	519,658	74.2	104.4
Avail	70,352	10.1	106.6
Birthday	81,394	11.6	106.4
Chambre	17,254	2.5	111.7
Divalo	1,042	0.1	116.2
Shimamura (non-consolidated)	689,702	98.5	105.0
Si meng le (Taiwan)	10,332	1.5	117.3
Shimamura (consolidated)	700,034	100.0	105.2

Same-store sales at the three core businesses exceeded the previous year, driven by higher customer traffic. The company attributes this to strengthened promotional events and product offerings less sensitive to temperature fluctuations; although the number of items per purchase declined year on year, this was offset by higher customer traffic. In the Shimamura business the unit price per item rose 1.2% for the full year, supported by the enhanced development of high-priced in-house developed brands, private brands (PB), CLOSSHI PREMIUM and jointly developed brands (JB) with suppliers.

Business (%, full year)	Net sales: existing stores	Net sales: all stores	Number of customers	Spending per customer	Number of items purchased	Unit price per item
Shimamura	104.4	104.4	104.1	100.3	99.0	101.2
Avail	105.1	106.6	105.8	100.8	99.8	101.1
Birthday	103.7	106.4	107.1	99.3	95.3	104.0

On gross profit by business, the Shimamura business posted a 4.7% year-on-year increase in gross profit for the full year with a gross margin of 34.1%, price reductions at 100.5% of the previous year and a discount rate of 6.2% (down 0.2 point). Avail posted gross profit at YoY 106.1 with a 39.0% gross margin, and Birthday posted gross profit at YoY 107.0 with a 33.7% gross margin, up 0.2 point year on year on enhanced product assortments.

Business Initiatives, Stores and E-Commerce

In the Shimamura business, private-brand products drove sales, with PB net sales up 7.7% year on year and FIBER HEAT sales up 28.6%; the PB sales composition ratio rose to 25.1% in 2025 from 24.3% in 2024, and the wellness-focused “Iki-Iki Labo” series was selected for Nikkei MJ’s “2025 Hit Products Ranking.” In the Avail business, character products increased 22.4% year on year on line expansion and new character development, and six key promotional events were held during the year. In the Birthday business, the JB brand “Cottoli” grew 11.2% and e-commerce sales rose 112.0%, while the 25th anniversary project lifted customer traffic. Chambre net sales increased 11.7% and Divalo net sales increased 16.2%, with approximately 40% of customers who used the foot measurement service at the newly opened Beppu FM store making a purchase. In Taiwan, Si meng le net sales rose 17.3%, and the newly opened Zhongshan North Road store in central Taipei recorded the highest-ever opening-period sales.

On the store network, 52 stores were opened during the year, in line with the plan, including the first five-business FM (fashion mall) store in Beppu, Oita Prefecture, and 115 stores were renovated, exceeding the plan. E-commerce sales amounted to 19.6 billion yen, up 51.7% year on year, with EC sales by business up 42.5% at Shimamura, 35.1% at Avail, 112.0% at Birthday and 158.1% at Chambre, and Divalo newly added. By category, children’s products accounted for 30.9% of EC sales, women’s outerwear 27.1%, household items 23.7% and others 18.3%. Following the integration of the online stores in late October into “Shimamura Park,” website traffic increased approximately three-fold and sales increased 58.2% year on year.

On ESG, the fully cyclical recycling ratio for hanger recycling was 80.9% against a target of 80%, and the volume collected reached 2,302 tons. Clothing collection was expanded from 200 to 900 stores and the amount collected doubled from the previous year to 143.1 tons. The ratio of female managers rose to 20.2% and the employment rate of persons with disabilities was 5.36%, against a legally mandated rate of 2.5%. Under the “Shimasapo” shopping support service, there were 281 on-site sales events and 201 shopping tours.

FY2/27 Forecast

For the fiscal year ending February 20, 2027, the company plans net sales of 729,193 million yen (up 4.2% year on year) and operating income of 66,842 million yen (up 8.7%), for an operating margin of 9.2%. SG&A expenses are expected to increase 3.0% year on year, with personnel expenses up 4.2% and expenses for consumables and display fixtures also rising, reflecting renovations of existing stores. The annual dividend per share is expected to be 80 yen.

Item (million yen / %)	FY2/27 Forecast	YoY	Ratio to sales	FY2/26 Result
Net sales	729,193	104.2	100.0	700,034
Gross profit	254,728	104.4	34.9	243,904
SG&A	189,292	103.0	26.0	183,771
Operating income	66,842	108.7	9.2	61,483
Ordinary income	68,825	108.1	9.4	63,672
Net income attributable to owners of parent	47,321	106.4	6.5	44,460
Net income per share	227.92yen	－	－	202.36yen
Dividend per share	80yen	－	－	215yen

The FY2/27 management policy carries the unified theme “Next Challenge 3rd – Evolving Challenges,” organised around strengthening product appeal, strengthening sales power, and strengthening base and foundation. For the store network, the group plans 65 new store openings and 38 store closures for a net increase of 27 stores, taking the consolidated store count to a planned 2,305 at the end of FY2/27, together with a renovation plan covering 100 stores. The company also cites accelerated store openings in urban areas (Tokyo and the Keihanshin region) and improved store profitability through expansion via relocations and fashion mall formats.

Business	End-FY2/26 number of stores	Planned opening stores	Planned closing stores	End-FY2/27 number of stores (Plan)	Number of renovation plan
Shimamura	1,423	25	18	1,430	73
Avail	323	15	9	329	14
Birthday	343	9	6	346	8
Chambre	125	11	3	133	5
Divalo	19	0	0	19	0
Shimamura (non-consolidated)	2,233	60	36	2,257	100
Si meng le (Taiwan)	45	5	2	48	0
Shimamura (consolidated)	2,278	65	38	2,305	100

Shareholder Returns

The results presentation states that the dividend per share for FY2/26 was 215 yen and that the dividend per share for FY2/27 is expected to be 80 yen for the full year. The company also notes that a 3-for-1 stock split was conducted on February 21, 2026. In addition, the materials state that total assets decreased by 2.2% year on year mainly due to the repurchase of treasury stock conducted on January 27. Further details of the shareholder return policy cannot be confirmed from the materials.

Medium-term Management Plan 2027

The company revised three numerical targets for the final year of its Medium-term Management Plan 2027 after consolidated net sales in the second year exceeded the initial plan. Consolidated net sales for FY2/27 were raised by 4.1 billion yen from the initial 725.0 billion yen to 729.1 billion yen; consolidated operating income was raised by 0.3 billion yen from 66.5 billion yen to 66.8 billion yen; and EC sales were raised by 3 billion yen from 18.0 billion yen to 21.0 billion yen. The plan chart shows net sales of 665.3 billion yen for 2025/2, 700.0 billion yen for 2026/2 and 729.1 billion yen for 2027/2, operating income of 59.2 billion yen, 61.4 billion yen and 66.8 billion yen respectively, operating profit margins of 8.9%, 8.8% and 9.2%, and EC sales of 12.9 billion yen, 19.6 billion yen and 21.0 billion yen.

Medium-term Management Plan 2027 target (FY2/27)	Initial Plan	Revised Plan	Change
Consolidated net sales	725.0 billion yen	729.1 billion yen	＋4.1 billion yen
Consolidated operating income	66.5 billion yen	66.8 billion yen	＋0.3 billion yen
EC sales	18.0 billion yen	21.0 billion yen	＋3 billion yen

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.