In Japan, during the three months ended June 30, 2026, the economy showed signs of a moderate recovery, with personal consumption picking up due to improvements in employment and income conditions. However, at the same time, there are concerns that could dampen consumer sentiment, such as trends in resource prices and impacts on the supply side associated with heightened tensions in the Middle East, as well as the continued moderate rise in prices, and the outlook remains uncertain.
In the auto parts and accessories industry, in which the Company operates, concerns over the supply of raw materials and merchandise against the backdrop of the situation in the Middle East, as well as concerns over future price increases, became factors prompting customers’ purchasing behavior, and sales of consumables such as oil and batteries remained strong. In addition, while there was demand for summer seasonal products due to rising temperatures from April, the number of store visits struggled to grow in June due to the effects of typhoons and prolonged rainfall.
Under these circumstances, the Group has worked to maintain inventories of key merchandise, including engine oil, and continued stable supply, while re-examining product assortments and proposal methods, which are the basics of retail stores, and promoting the provision of appropriate merchandise and services. In addition, in order to encourage more customers to use the Yellow Hat official app, which has been offered conventionally, and experience its convenience, we proactively promoted it through in-store customer outreach.
As a result, the operating results for the three months ended June 30, 2026 were as follows. Net sales and gross profit reached record highs.
During the three months ended June 30, 2026, due to strong sales of consumables such as tires, engine oil, and batteries, as well as the impact of increased labor charge income, net sales were 41,248 million yen (102.4% year-on-year, or up 959 million yen) and gross profit was 18,530 million yen (101.3% year-on-year, or up 236 million yen).
Selling, general and administrative expenses amounted to 15,623 million yen (105.6% year-on-year, or up 827 million yen), due to higher store operating costs, including personnel expenses resulting from increased store staff, as well as increases in training expenses as an investment in human capital, the promotion of DX aimed at strengthening the customer base, and commission expenses associated with the renewal of the sales data analysis system.
As a result, operating profit was 2,907 million yen (83.1% year-on-year, or down 591 million yen) and ordinary profit was 3,360 million yen (87.0% year-on-year, or down 503 million yen). Meanwhile, gain on sale of real estate whose profitability did not match its cost of capital was recorded as extraordinary income, and profit attributable to owners of parent was 2,846 million yen (106.3% year-on-year, or up 168 million yen).
As for the breakdown of net sales by key division, the Retail Division amounted to 28,966 million yen (103.6% year-on-year, or up 999 million yen) and the Wholesale Division amounted to 9,674 million yen (99.7% year-on-year, or down 24 million yen).
Going forward, the future outlook is likely to remain uncertain. Nevertheless, the Group will aim to strengthen its brand recognition as a “comprehensive car maintenance services company” by actively opening new stores in areas where cars are essential for daily transportation and offering product assortments tailored to customer needs. It will also focus on the motorcycle business and the “provision of total service that includes Yellow Hat and the motorcycle business,” further reinforcing its business foundations to increase earnings.
We look forward to your continued warm support and guidance.
August 2026
Yasuo Horie (Representative Director and Chairperson)
Akio Kimura (Representative Director and President)
Message from the Chairman and President
Message from the Chairman and President
Message from the Chairman and President
In Japan, during the three months ended June 30, 2026, the economy showed signs of a moderate recovery, with personal consumption picking up due to improvements in employment and income conditions. However, at the same time, there are concerns that could dampen consumer sentiment, such as trends in resource prices and impacts on the supply side associated with heightened tensions in the Middle East, as well as the continued moderate rise in prices, and the outlook remains uncertain.
In the auto parts and accessories industry, in which the Company operates, concerns over the supply of raw materials and merchandise against the backdrop of the situation in the Middle East, as well as concerns over future price increases, became factors prompting customers’ purchasing behavior, and sales of consumables such as oil and batteries remained strong. In addition, while there was demand for summer seasonal products due to rising temperatures from April, the number of store visits struggled to grow in June due to the effects of typhoons and prolonged rainfall.
Under these circumstances, the Group has worked to maintain inventories of key merchandise, including engine oil, and continued stable supply, while re-examining product assortments and proposal methods, which are the basics of retail stores, and promoting the provision of appropriate merchandise and services. In addition, in order to encourage more customers to use the Yellow Hat official app, which has been offered conventionally, and experience its convenience, we proactively promoted it through in-store customer outreach.
As a result, the operating results for the three months ended June 30, 2026 were as follows. Net sales and gross profit reached record highs.
During the three months ended June 30, 2026, due to strong sales of consumables such as tires, engine oil, and batteries, as well as the impact of increased labor charge income, net sales were 41,248 million yen (102.4% year-on-year, or up 959 million yen) and gross profit was 18,530 million yen (101.3% year-on-year, or up 236 million yen).
Selling, general and administrative expenses amounted to 15,623 million yen (105.6% year-on-year, or up 827 million yen), due to higher store operating costs, including personnel expenses resulting from increased store staff, as well as increases in training expenses as an investment in human capital, the promotion of DX aimed at strengthening the customer base, and commission expenses associated with the renewal of the sales data analysis system.
As a result, operating profit was 2,907 million yen (83.1% year-on-year, or down 591 million yen) and ordinary profit was 3,360 million yen (87.0% year-on-year, or down 503 million yen). Meanwhile, gain on sale of real estate whose profitability did not match its cost of capital was recorded as extraordinary income, and profit attributable to owners of parent was 2,846 million yen (106.3% year-on-year, or up 168 million yen).
As for the breakdown of net sales by key division, the Retail Division amounted to 28,966 million yen (103.6% year-on-year, or up 999 million yen) and the Wholesale Division amounted to 9,674 million yen (99.7% year-on-year, or down 24 million yen).
Going forward, the future outlook is likely to remain uncertain. Nevertheless, the Group will aim to strengthen its brand recognition as a “comprehensive car maintenance services company” by actively opening new stores in areas where cars are essential for daily transportation and offering product assortments tailored to customer needs. It will also focus on the motorcycle business and the “provision of total service that includes Yellow Hat and the motorcycle business,” further reinforcing its business foundations to increase earnings.
We look forward to your continued warm support and guidance.
August 2026
Yasuo Horie
(Representative Director and Chairperson)
Akio Kimura
(Representative Director and President)
