During the three months ended June 30, 2025, the Japanese economy showed signs of an upturn in personal consumption due to improvements in employment and income conditions, together with a moderate recovery in business conditions. Meanwhile, the future outlook remains uncertain, with concern that factors such as the impact of U.S. trade policy and continuing price hikes may depress consumer sentiment.
In the auto parts and accessories industry, in which the Company operates, tire sales were strong throughout the three-month period, partly due to a last-minute demand rush in anticipation of price increases associated with the price revisions implemented by tire manufacturers. In-store sales of expendable auto parts such as oil and batteries also progressed steadily, driven by driving demand during the long holiday in May.

In this environment, the Group actively pursued key measures to meet the needs of customers who use cars for daily transportation. Specifically, we strengthened our product lineup and inventory system for tires, our main products, and launched full-scale sales of seasonal products such as sunshades well in advance of the summer season. In our installation and maintenance services, we informed customers that the period for vehicle inspections has been extended from one month to two months due to regulatory changes in April 2025, and promoted proposals for body coating and air conditioning-related services. We also worked on enhancing the convenience of the existing Yellow Hat official app, including the addition of a same-day oil change reservation feature. Sales progressed strongly, with many customers utilizing the app.

As a result, the Group achieved record first-quarter highs in net sales, gross profit, operating profit, and ordinary profit, with the following financial position and operating results for the three months ended June 30, 2025.

In the three months ended June 30, 2025, net sales amounted to 40,288 million yen (116.2% year-on-year, or up 5,616 million yen). This was due to the results of Y International, Inc., acquired as a subsidiary in January 2025, which operates the “Y’s Road” sports bicycle chain stores, as well as strong sales of expendable auto parts, such as tires and batteries, an increase in wage earnings, and other factors. Gross profit was 18,293 million yen (117.5% year-on-year, or up 2,725 million yen).
Selling, general and administrative expenses amounted to 14,789 million yen (118.8% year-on-year, or up 2,338 million yen), mainly owing to an increase in subsidiary stores and a rise in store operating costs, primarily in personnel costs.
As a result, operating profit was 3,504 million yen (112.4% year-on-year, or up 387 million yen), ordinary profit was 3,870 million yen (111.8% year-on-year, or up 406 million yen), and profit attributable to owners of parent was 2,677 million yen (118.7% year-on-year, or up 421 million yen).

Going forward, it is likely that the future outlook will 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 2025
Yasuo Horie
(Representative Director and Chairman)
Akio Kimura
(Representative Director and President)