K’s Holdings (8282): FY2025 Results Summary — Air Conditioners, PCs and Mobile Phones Lift Profits Above Plan

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

Note: the company labels this period “FY3/2026” (Apr. 1, 2025 – Mar. 31, 2026); on this site the most recently completed fiscal year is classified as FY2025, and all labels below follow the company’s own presentation.

K’S HOLDINGS CORPORATION, the home appliance and electronics specialty retailer that operates the K’s Denki chain, announced its results for FY3/2026 on May 8, 2026. Net sales came to 759,710 million yen, 102.9% of the previous year (+21,691 million yen), and operating profit came to 26,799 million yen, 123.0% of the previous year (+5,017 million yen), with the company noting that PCs, mobile phones and air conditioners performed well. Profit attributable to owners of parent was 14,317 million yen, 150.3% of the previous year (+4,792 million yen). All three profit lines came in above the company’s own forecast, and for FY3/2027 the company plans further sales and profit growth on the back of what it calls “The 2027 Air Conditioner Problem.”

Consolidated Results (Full-Year Actual)

Net sales of 759,710 million yen were 100.6% of plan and 102.9% of the previous year. Gross profit was 210,213 million yen, 102.9% of the previous year, while the gross profit margin was 27.7%, unchanged from the previous year and below the 27.9% assumed in the plan. SG&A expenses were 183,414 million yen, 100.5% of the previous year, and finished at 97.7% of plan, with depreciation down 1,039 million yen, outsourcing expenses down 379 million yen and utilities expenses down 331 million yen offsetting a 2,041 million yen increase in personnel expenses. Operating profit of 26,799 million yen was 116.5% of plan, ordinary profit of 30,579 million yen was 115.4% of plan, and profit attributable to owners of parent of 14,317 million yen was 143.2% of plan.

Item (million yen)	FY3/2025 Actual	FY3/2026 Forecast	FY3/2026 Actual	+/- from plan	% of plan	+/- from last year	%YoY
Net sales	738,019	755,000	759,710	+4,710	100.6	+21,691	102.9
Gross profit	204,323	210,800	210,213	(586)	99.7	+5,890	102.9
SG&A	182,541	187,800	183,414	(4,385)	97.7	+872	100.5
Personnel expenses	70,888	74,000	72,929	(1,070)	98.6	+2,041	102.9
Advertising expenses	10,365	11,000	10,321	(678)	93.8	(44)	99.6
Depreciation	14,440	13,500	13,400	(99)	99.3	(1,039)	92.8
Operating profit	21,781	23,000	26,799	+3,799	116.5	+5,017	123.0
Ordinary profit	25,910	26,500	30,579	+4,079	115.4	+4,669	118.0
Profit attributable to owners of parent	9,525	10,000	14,317	+4,317	143.2	+4,792	150.3

Momentum built through the year. In the fourth quarter (Jan. 1 – Mar. 31, 2026), net sales were 195,310 million yen, 106.6% of the previous year (+12,022 million yen), and operating profit was 10,174 million yen, 180.5% of the previous year (+4,538 million yen), while profit attributable to owners of parent was 591 million yen against (2,832) million yen a year earlier. Same-store sales were 105.3% in Q4, 104.1% in H2 and 101.8% for the full year. The gross profit margin was 29.0% in Q4 versus 28.4% a year earlier; the company attributes the Q4 improvement to strong sales of high-margin air conditioners, after strong sales of relatively low-margin mobile phones and PCs weighed on the mix in the third quarter.

Merchandise Sales by Category (Full Year)

By product, the ITs category reached 212,813 million yen, 114.9% of the previous year, led by PC / information devices at 130.1% year on year and mobile phones at 118.3%. The company cites PC replacement demand following the end of Windows 10 support on Oct. 14, and a replacement cycle for mobile phones sold two years earlier under the residual value method. Seasonal products reached 127,255 million yen, 105.8% of the previous year, with air conditioners at 101,749 million yen, 108.7% of the previous year, on record high temperatures in June, the expansion of the Tokyo Metropolitan Government’s “Tokyo Zero Emission Points” subsidy program from August 30, and last-minute demand ahead of the April 2027 tightening of energy-saving standards. Home Appliances were 279,012 million yen (98.7% year on year) and Visual / Audio 90,354 million yen (98.4%).

Product (million yen)	FY3/2025 Sales	FY3/2026 Sales	% of sales	%YoY
TV	61,580	62,054	8.2	100.8
Blu-ray/DVD/Other	16,432	14,970	2.0	91.1
Audio	13,838	13,329	1.8	96.3
Visual・Audio subtotal	91,852	90,354	11.9	98.4
PC・information device	42,536	55,351	7.3	130.1
PC peripheral device	31,762	31,928	4.2	100.5
Mobile phone	87,294	103,278	13.6	118.3
Other (ITs)	23,575	22,255	2.9	94.4
ITs subtotal	185,169	212,813	28.0	114.9
Refrigerator	71,605	68,339	9.0	95.4
Washing machine	71,592	70,317	9.3	98.2
Vacuum cleaner	26,330	25,958	3.4	98.6
Cooking appliance	51,521	52,454	6.9	101.8
Beauty & health appliance	33,445	33,819	4.5	101.1
Other (Home Appliances)	28,329	28,124	3.7	99.3
Home Appliances subtotal	282,824	279,012	36.7	98.7
Air conditioner	93,602	101,749	13.4	108.7
Other (Seasonal)	26,654	25,506	3.4	95.7
Seasonal subtotal	120,256	127,255	16.8	105.8
Others	57,916	50,275	6.6	86.8
Total	738,019	759,710	100.0	102.9

Store Network and Financial Position

The store count was unchanged over the year at 556 stores as of Mar. 31, 2026 (552 directly managed stores and 4 franchisee stores), with 5 openings and 5 closings during the year. Total sales floor area increased by 6,982 square meters to 2,059,244 square meters (100.3% year on year), and average sales floor area per store was 3,703 square meters.

Total assets were 422,482 million yen as of Mar. 31, 2026, down 199 million yen from a year earlier. Merchandise inventories increased 6,656 million yen to 175,116 million yen. Short-term borrowings fell 45,300 million yen to 2,500 million yen while long-term borrowings of 40,000 million yen were newly recorded. Total net assets were 248,875 million yen and the equity ratio was 58.9%, down 0.5 points from 59.4% at the end of March 2025 but up 1.6 points from 57.3% at the end of December 2025. ROE was 5.7% in FY3/2026 and is targeted at 7.8% in FY3/2027. EPS was 91.31 yen.

FY3/2027 Forecast (Apr. 2026 – Mar. 2027)

For FY3/2027 the company plans net sales of 785,000 million yen (103.3% year on year), operating profit of 30,500 million yen (113.8%), ordinary profit of 33,500 million yen (109.5%) and profit attributable to owners of parent of 20,000 million yen (139.7%). The sales plan assumes 103.3% year on year for all stores and 102.8% for same stores over the full year, with H1 at 105.7% (same stores 105.2%) and H2 at 101.1% (same stores 100.5%). The gross profit margin is planned at 28.0% for the full year, +0.3 points year on year, on the assumption that the share of low-margin PCs and mobile phones declines while the share of high-margin air conditioners rises, and that the competitive environment does not intensify. For FY3/2027 the company plans 9 store openings and 7 closings for 558 stores as of Mar. 31, 2027, sales floor area of 2,071,301 square meters (100.6% year on year), and store capital investment of 16 billion yen including renovation.

Item (million yen)	FY3/2026 Actual	FY3/2027 Plan	% of sales (Plan)	%YoY
Net sales	759,710	785,000	100.0	103.3%
Gross profit	210,213	219,500	28.0	104.4%
SG&A	183,414	189,000	24.1	103.0%
Personnel expenses	72,929	75,900	9.7	104.1%
Advertising expenses	10,321	11,000	1.4	106.6%
Operating profit	26,799	30,500	3.9	113.8%
Ordinary profit	30,579	33,500	4.3	109.5%
Profit attributable to owners of parent	14,317	20,000	2.5	139.7%

Shareholder Returns

The shareholder return policy sets a target total payout of 80%, with flexible stock buybacks, and a target consolidated dividend payout ratio of 40%. The company will maintain a minimum annual dividend per share of 48 yen throughout the Medium-term Management Plan (republished content announced on Nov. 6, 2025; the minimum dividend was updated on May 8, 2026). The FY3/2026 annual dividend was 46.00 yen per share (22.00 yen at the second quarter-end and 24.00 yen at the fiscal year-end), for a dividend payout ratio of 50.4%. For FY3/2027 the company forecasts 48.00 yen (24.00 yen at each of the second quarter-end and fiscal year-end), a payout ratio of 37.1%. Based on the closing price of 1,673.5 yen as of Mar. 31, 2026, the FY3/2026 dividend yield was 2.75%.

Dividend per share (yen)	Second quarter-end	Fiscal year-end	Total
FY3/2026 Actual	22.00	24.00	46.00
FY3/2027 Forecast	24.00	24.00	48.00

Medium-Term Plan and Topics

The presentation cites excerpts from the “Medium-Term Management Plan 2027” announced on May 9, 2024, whose pillars are to generate stable profits by specializing in home appliances and electronics, to streamline business processes and increase sales through DX, and to increase corporate value through enhanced capital efficiency. Its principles are to lay the foundations for longer-term growth by re-examining existing store efficiency and boosting customer service.

On ESG, K’S HOLDINGS CORPORATION was certified as a “KENKO Investment for Health 2026 (Large Enterprise Category)” on March 9, 2026, a joint certification for the entire Group as in the previous year. The company received an “A-” score in the 2025 CDP “Climate Change” category, its second “A-” score and an improvement over the previous year’s “B” score, and has joined the TNFD Forum after endorsing the Taskforce on Nature-related Financial Disclosures initiative.

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.