Axial Retailing reports strong first-half results, plans expansion and higher dividends

Axial Retailing reported a net sales increase of 8,905 million yen to 146,718 million yen for the first half of fiscal year ending March 2026, marking 6.5% year-over-year growth. Ordinary profit rose by 1.5% to 6,026 million yen, while net profit increased by 1.4% to 4,054 million yen. The company projects full-year net sales of 286,000 million yen with an ordinary profit of 12,000 million yen, targeting a 1.5% increase in net sales for the full year.

The company's medium-term management plan (2026/3 – 2028/3) aims for net sales of 310,000 million yen and an ordinary profit ratio of 4.2% by the end of fiscal 2028. This growth will be driven by opening 12 new stores, bringing the total to 140, and redeveloping its foundations in manufacturing, distribution, and IT, including a new Nagano Area Center. Strategic initiatives include vertical MD promotion, centralized purchasing, and ESLP strategy to reduce operational burdens.

Shareholder returns are a key focus, with a projected annual dividend of 29 yen per share for fiscal 2026, an increase of 2 yen from the previous year. The company repurchased 1.2 billion yen in shares in fiscal 2025, part of a 2 billion yen budget. The medium-term plan allocates 7,700 million yen for dividends and 3,975 million yen for strategic investments, including M&A and share buybacks.