Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

<ul><li>Sales improve in Q3 but personnel and store opening costs weigh on OP – Although Q1-3 FY3/25 sales declined -3.4% YoY to ¥316.16bn, reflecting the difficult annual comps for new games and consoles in H1, in Q3 the absence of this drag meant that this quarter alone rose +4.3% YoY to ¥116.43bn.</li><li>Demand for reuse clothes and smartphones remained robust, buoyed by store openings, year-end sales for clothes and price conscious consumers.</li><li>However, increased hiring, base salary increases and credit card fees continued to eat into OP, which in FY3/25 Q1-3 fell -26.4% YoY to ¥9.82bn.</li></ul>

Sales improve in Q3 but personnel and store opening costs weigh on OP – Although Q1-3 FY3/25 sales declined -3.4% YoY to ¥316.16bn, reflecting the difficult annual comps for new games and consoles in H1, in Q3 the absence of this drag meant that this quarter alone rose +4.3% YoY to ¥116.43bn.Demand for reuse clothes and smartphones remained robust, buoyed by store openings, year-end sales for clothes and price conscious consumers.However, increased hiring, base salary increases and credit card fees continued to eat into OP, which in FY3/25 Q1-3 fell -26.4% YoY to ¥9.82bn.

Geo Holdings (2681 JP) - Q3 Sales Improve, but Costs Weigh on OP

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

<ul><li>Revenue decreased by 3.4% YoY to JPY316.2bn, with a decline in new game console demand impacting sales.</li><li>Gross profit increased by 7.0% YoY to JPY127.3bn, while operating profit margin fell to 3.1% due to higher SG&A expenses.</li><li>Sales of secondhand goods rose 12.5% YoY to JPY140.4bn, driven by increased secondhand market demand and store expansions.</li></ul>

Revenue decreased by 3.4% YoY to JPY316.2bn, with a decline in new game console demand impacting sales.Gross profit increased by 7.0% YoY to JPY127.3bn, while operating profit margin fell to 3.1% due to higher SG&A expenses.Sales of secondhand goods rose 12.5% YoY to JPY140.4bn, driven by increased secondhand market demand and store expansions.

Geo Holdings (2681 JP): Q3 FY03/25 flash update

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.</li>
<li>The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.</li>
<li>This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.</li>
</ul>


Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.
The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.
This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.


<ul><li><strong>Sales and profit fall</strong> – Q1-2FY3/25 sales and OP declined as the difficult annual comps for new games and consoles continued into Q2.</li><li>This ate into strong demand for the company’s reuse (second- hand) clothes and used smartphones.</li><li>Q1-2 sales fell 7.4% to ¥199.7bn while OP declined at a faster 25.9% pace to ¥5.4bn. </li></ul>

Sales and profit fall – Q1-2FY3/25 sales and OP declined as the difficult annual comps for new games and consoles continued into Q2.This ate into strong demand for the company’s reuse (second- hand) clothes and used smartphones.Q1-2 sales fell 7.4% to ¥199.7bn while OP declined at a faster 25.9% pace to ¥5.4bn. 

Geo Holdings (2681 Jp) - Sales, OP Fall Despite Strong Core Product Demand

<ul><li>Revenue decreased by 7.4% YoY to JPY199.7bn, with operating profit declining 25.9% YoY to JPY5.4bn.</li><li>Gross profit increased 7.8% YoY to JPY81.8bn, driven by a change in sales composition and higher gross profit margin.</li><li>Secondhand product revenue rose 10.9% YoY to JPY87.3bn, while new product revenue dropped 40.1% YoY to JPY44.5bn.</li></ul>

Revenue decreased by 7.4% YoY to JPY199.7bn, with operating profit declining 25.9% YoY to JPY5.4bn.Gross profit increased 7.8% YoY to JPY81.8bn, driven by a change in sales composition and higher gross profit margin.Secondhand product revenue rose 10.9% YoY to JPY87.3bn, while new product revenue dropped 40.1% YoY to JPY44.5bn.

Geo Holdings (2681 JP): 1H FY03/25 flash update

Japan

GEO Holdings Corporation operates stores that rent and sell videos, CDs, DVDs, games, and books nationwide. The Company also buys and sells used books and CDs. GEO operates its own stores and also franchise stores.

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Geo Holdings (2681 JP)