Nitori First Take Slightly Above Expectations

Nitori's FY3/26 operating profits slightly beat expectations due to narrowing Shimachu losses and improved gross margins. Goldman Sachs maintains a Neutral rating while monitoring the impact of new product launches and a multi-year store fixture review.

Key Takeaways

• 1.FY3/26 operating profits of ¥125.5 bn (+7% yoy) slightly exceeded Goldman Sachs' estimates of ¥121.4 bn.
• 2.The earnings beat was driven by narrowing losses in the Shimachu business and gross margin improvements (GPM up 2.0 pp).
• 3.FY3/27 is viewed as a year for addressing product development and store fixture issues, with a return to significant growth expected in FY3/28.

Table of Contents

• Results overview
• Key results briefing takeaways
• Price Target Risks and Methodology - Nitori

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