During the six months ended September 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 six-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 for travel and homecoming visits.
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 net sales, operating profit, and ordinary profit that exceeded its plans as well as the results for the same period of the previous fiscal year. Furthermore, profit attributable to owners of parent reached a record first-half high. The Group’s financial position and operating results for the six months ended September 30, 2025 were as follows.
In the six months ended September 30, 2025, net sales amounted to 79,305 million yen (114.5% year-on-year, or up 10,014 million yen). This was due to the results of Y International, Inc. being included in consolidated profit and loss for the first time. Y International, which was acquired as a subsidiary in January 2025, operates the “Y’s Road” sports bicycle chain stores. Other factors contributing to the growth in net sales included strong sales of expendable auto parts, such as tires and batteries, and an increase in wage earnings. Gross profit was 35,009 million yen (115.0% year-on-year, or up 4,558 million yen).
Selling, general and administrative expenses amounted to 29,504 million yen (117.6% year-on-year, or up 4,407 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 5,505 million yen (102.8% year-on-year, or up 151 million yen), ordinary profit was 6,129 million yen (103.5% year-on-year, or up 209 million yen), and profit attributable to owners of parent was 4,320 million yen (108.8% year-on-year, or up 350 million yen).
As for the breakdown of net sales by key division, the Retail Division recorded net sales of 54,203 million yen (121.2% year-on-year, or up 9,485 million yen), while the Wholesale Division recorded net sales of 19,911 million yen (101.3% year-on-year, or up 259 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.
November 2025
Yasuo Horie (Representative Director and Chairman)
Akio Kimura (Representative Director and President)
Message from the Chairman and President
Message from the Chairman and President
Message from the Chairman and President
During the six months ended September 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 six-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 for travel and homecoming visits.
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 net sales, operating profit, and ordinary profit that exceeded its plans as well as the results for the same period of the previous fiscal year. Furthermore, profit attributable to owners of parent reached a record first-half high. The Group’s financial position and operating results for the six months ended September 30, 2025 were as follows.
In the six months ended September 30, 2025, net sales amounted to 79,305 million yen (114.5% year-on-year, or up 10,014 million yen). This was due to the results of Y International, Inc. being included in consolidated profit and loss for the first time. Y International, which was acquired as a subsidiary in January 2025, operates the “Y’s Road” sports bicycle chain stores. Other factors contributing to the growth in net sales included strong sales of expendable auto parts, such as tires and batteries, and an increase in wage earnings. Gross profit was 35,009 million yen (115.0% year-on-year, or up 4,558 million yen).
Selling, general and administrative expenses amounted to 29,504 million yen (117.6% year-on-year, or up 4,407 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 5,505 million yen (102.8% year-on-year, or up 151 million yen), ordinary profit was 6,129 million yen (103.5% year-on-year, or up 209 million yen), and profit attributable to owners of parent was 4,320 million yen (108.8% year-on-year, or up 350 million yen).
As for the breakdown of net sales by key division, the Retail Division recorded net sales of 54,203 million yen (121.2% year-on-year, or up 9,485 million yen), while the Wholesale Division recorded net sales of 19,911 million yen (101.3% year-on-year, or up 259 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.
November 2025
Yasuo Horie
(Representative Director and Chairman)
Akio Kimura
(Representative Director and President)
