Chiyoda revises forecasts down amid slower sales growth

Chiyoda Corporation revised its consolidated and non-consolidated financial forecasts for the fiscal year ending February 2026, citing discrepancies between previously announced expectations and actual performance for the second quarter (March 1 to August 31, 2025). The company reported that while its "Spat Shoes" private brand achieved over 170% growth, overall sales, particularly for other products and national brands, were approximately 90% of the plan, leading to a JPY 2,170 million shortfall in revenue. This resulted in a JPY 821 million decrease in operating profit against the initial forecast.

For the full year, the consolidated revenue forecast was revised down by JPY 4,150 million, from JPY 86,000 million to JPY 81,850 million, a 4.8% decrease. Operating profit is now projected at JPY 1,700 million, a 52.8% reduction from the initial JPY 3,600 million. Ordinary profit is expected to be JPY 1,950 million, down 48.7%, and net income attributable to owners of parent is forecast at JPY 1,000 million, a 63.6% decrease from the original JPY 2,750 million. Diluted EPS for the full year is now projected at JPY 29.07, down from JPY 78.17.

The non-consolidated full-year forecasts also saw substantial cuts, with revenue falling JPY 4,600 million (5.5%) to JPY 79,400 million, and ordinary profit revised down by JPY 2,140 million (57.2%) to JPY 1,600 million. Net income for the full year is now forecast at JPY 750 million, a 72.7% decrease. The company plans to implement promotional measures and cost reductions in the second half, alongside the business transfer of Oak N. Japan, but anticipates a delay in customer recovery.