Morito's 3Q sees record sales and profits, acquisitions boost performance

Morito Corporation announced record-breaking financial results for the third quarter of the fiscal year ending November 2025, with net sales reaching JPY40,595 million, a 14.0% increase year-over-year. Operating profit surged by 10.6% to JPY2,381 million, and ordinary profit rose by 15.7% to JPY2,644 million, marking the highest figures since quarterly disclosures began. This growth was significantly bolstered by the consolidation of Ms.ID in 2Q and Mitsuboshi Corporation in 3Q, along with a recovery in the domestic apparel market.

The gross profit margin has consistently stayed above 30% since the second quarter, reflecting improved profitability in existing businesses. Despite increased personnel expenses due to human capital strengthening and Ms.ID-related sales expenses, the acquisitions contributed positively to the overall operating profit. Net income for the quarter reached JPY3,013 million, a substantial 57.0% increase year-over-year, partly due to a provisional gain on the bargain purchase of Mitsuboshi Corporation totaling JPY1,105 million.

Morito maintains its full-year forecast, anticipating net sales of JPY56,000 million and ordinary profit of JPY3,300 million, with a cautious approach to goodwill and trademark valuation given uncertainties in U.S. trade policy and accelerated local production. The company continues to focus on environmental initiatives, with products like MURON and ASUKAMI displayed at Expo 2025, and emphasizes shareholder returns with a dividend payout ratio target of 50% or more and a DOE of 4.0%.