During the nine months ended December 31, 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 nine-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. However, sales of winter products were sluggish due to the impact of the high temperatures in December.
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. As a result, the number of online reservations for our services increased significantly, reaching 153% year-on-year. Through these series of initiatives, we were able to serve many customers during the nine-month period.
As a result, the Group’s financial position and operating results for the nine months ended December 31, 2025 were as follows.
In the nine months ended December 31, 2025, there were positive factors, including the start of incorporating Y International, Inc. (renamed Y’s Road Yellow Hat Inc. on January 1, 2026), which operates the "Y’s Road" sports bicycle chain stores and was made a subsidiary in January 2025, into consolidated income, strong sales of expendable auto parts such as tires and batteries, and an increase in wage earnings. On the other hand, as temperatures remained high, sales of winter products declined sharply during the peak demand period, which put pressure on profitability. As a result, net sales amounted to 132,353 million yen (111.1% year-on-year, or up 13,204 million yen), and gross profit was 57,516 million yen (111.4% year-on-year, or up 5,870 million yen).
Selling, general and administrative expenses amounted to 44,800 million yen (116.3% year-on-year, or up 6,274 million yen), primarily owing to an increase in subsidiary stores, store operation costs, including personnel costs, and logistics costs.
As a result, operating profit was 12,716 million yen (96.9% year-on-year, or down 403 million yen), ordinary profit was 13,949 million yen (98.2% year-on-year, or down 252 million yen), and profit attributable to owners of parent was 10,468 million yen (107.6% year-on-year, or up 740 million yen), due in part to the recording of gain on sale of investment securities.
As for the breakdown of net sales by key division, the Retail Division recorded net sales of 88,971 million yen (116.8% year-on-year, or up 12,810 million yen), while the Wholesale Division recorded net sales of 35,634 million yen (100.0% year-on-year, or down 8 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.
February 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
During the nine months ended December 31, 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 nine-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. However, sales of winter products were sluggish due to the impact of the high temperatures in December.
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. As a result, the number of online reservations for our services increased significantly, reaching 153% year-on-year. Through these series of initiatives, we were able to serve many customers during the nine-month period.
As a result, the Group’s financial position and operating results for the nine months ended December 31, 2025 were as follows.
In the nine months ended December 31, 2025, there were positive factors, including the start of incorporating Y International, Inc. (renamed Y’s Road Yellow Hat Inc. on January 1, 2026), which operates the "Y’s Road" sports bicycle chain stores and was made a subsidiary in January 2025, into consolidated income, strong sales of expendable auto parts such as tires and batteries, and an increase in wage earnings. On the other hand, as temperatures remained high, sales of winter products declined sharply during the peak demand period, which put pressure on profitability. As a result, net sales amounted to 132,353 million yen (111.1% year-on-year, or up 13,204 million yen), and gross profit was 57,516 million yen (111.4% year-on-year, or up 5,870 million yen).
Selling, general and administrative expenses amounted to 44,800 million yen (116.3% year-on-year, or up 6,274 million yen), primarily owing to an increase in subsidiary stores, store operation costs, including personnel costs, and logistics costs.
As a result, operating profit was 12,716 million yen (96.9% year-on-year, or down 403 million yen), ordinary profit was 13,949 million yen (98.2% year-on-year, or down 252 million yen), and profit attributable to owners of parent was 10,468 million yen (107.6% year-on-year, or up 740 million yen), due in part to the recording of gain on sale of investment securities.
As for the breakdown of net sales by key division, the Retail Division recorded net sales of 88,971 million yen (116.8% year-on-year, or up 12,810 million yen), while the Wholesale Division recorded net sales of 35,634 million yen (100.0% year-on-year, or down 8 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.
February 2026
Yasuo Horie
(Representative Director and Chairperson)
Akio Kimura
(Representative Director and President)
