Izumi lowers full-year forecast amid inflationary pressures

Izumi Co., Ltd. has revised its consolidated full-year financial forecast for the fiscal year ending February 28, 2026, lowering expectations across key metrics. Operating revenue is now projected at 570,300 million yen, a 19,800 million yen decrease from the previous forecast, while operating profit is revised down to 26,400 million yen, a 4,300 million yen reduction. Profit attributable to owners of parent is also adjusted to 15,200 million yen, a 3,100 million yen decrease. This revision primarily reflects increased cost pressures from inflation, including higher electricity rates, personnel expenses, and logistics, coupled with a decline in consumer spending.

The company's Second Medium-term Management Plan targets have also been adjusted, with operating revenue revised to 570.3 bn yen and operating profit to 26.4 bn yen. Despite these adjustments, Izumi plans to continue its focus on cost management and strengthening product strategies, including expanding its private brand Youme-Ichi, to adapt to the challenging economic environment. The company noted that first-half sales recovered from last year's ransomware attack, and M&A activities boosted revenue, but did not offset the increased costs and dampened consumer demand.

Izumi also reported that system migration was completed at all SUNNY stores, and KURASHI-MORE products were fully introduced. The company is actively promoting membership for Youme Card and Youme app to increase customer engagement. Capital investment for FY2025 is projected at 17.0 bn yen (construction basis), with new stores and revitalizations continuing as part of its strategic growth plan.