Joshin Denki unveils new strategic plan despite mixed financial results

Joshin Denki reported a 9.6% increase in net sales to 210,452 million yen for the first six months of fiscal year 2025 (ending March 31, 2026), with operating income rising by 16.3% to 2,138 million yen. However, net income attributable to owners of parent saw a 13.7% decrease to 1,894 million yen. The company maintains its full-year forecast, projecting net sales of 404,000 million yen and operating income of 4,000 million yen.

The company's new medium-term management plan, "JT-2028," outlines a strategy to become a "lifestyle support company" by enhancing core businesses, developing growth areas, and exploring new domains through initiatives like full-scale entry into private brand products and leveraging online and AI technologies. This plan aims for operating income of 10 billion yen or higher and an ROE of 7.0% or higher by fiscal year 2028. Additionally, Joshin Denki will change its trade name to Joshin Corporation from April 2026.

Joshin Denki's capital policy under JT-2028 emphasizes an optimal balance between capital cost, stock price, and FCF generation. This includes aggressive investment in future growth businesses, targeting 18 billion yen for stores, 2 billion yen for logistics, and 6 billion yen for business domain expansion. Shareholder returns are set with a payout ratio of 40% or higher and a DOE of 2.5% or higher, alongside a continued reduction in cross-shareholdings to less than 3.0%.