During the fiscal year ended March 31, 2026, the Japanese economy showed a mild recovery in economic conditions along with improvements in employment and income conditions, leading to signs of recovery in personal consumption. However, the future outlook remains uncertain, with concerns that could lower consumer sentiment, such as the impact of U.S. trade policies, continued price increases, as well as the impact of escalating tensions in the Middle East on resource prices and supply chains.
In the auto parts and accessories industry, in which the Company operates, tire sales performed strongly throughout the period due to price revisions implemented by various tire manufacturers, which generated rush demand before the price increases. Additionally, in-store sales of expendable auto parts such as oil and batteries progressed steadily, driven by driving demand for travel and homecoming visits. Although sales of winter products were sluggish due to the high temperatures in December, the tire changeover season in March produced solid results, supported by the robust demand seen throughout the year.
In this environment, the Group actively implemented key measures to meet the needs of customers who rely on cars as their daily transportation. Specifically, we strengthened our product lineup and inventory system for tires, which are core products, and began full-scale early deployment of seasonal products, including sunshades, in preparation for summer. Furthermore, in installation and maintenance services, we issued notifications regarding the extension of the vehicle inspection acceptance period from one month to two months due to regulatory changes in April 2025, and promoted proposals for body coating and air conditioning services. Additionally, we improved convenience by adding a same-day oil change reservation feature to the Yellow Hat official app we have been rolling out. As a result, the number of online reservations for our services increased significantly, reaching 157% year-on-year. We also began handling direct auto insurance in collaboration with NTT DOCOMO, INC. as part of a new initiative to support customers’ car life. Through these series of initiatives, we were able to serve many customers during the period.
As a result, the Group’s operating results for the fiscal year ended March 31, 2026 were as follows.
During the fiscal year under review, 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. As a result, net sales amounted to 171,280 million yen (111.2% year-on-year, or up 17,213 million yen), and gross profit was 74,477 million yen (110.5% year-on-year, or up 7,085 million yen).
Selling, general and administrative expenses amounted to 59,389 million yen (114.3% year-on-year, or up 7,449 million yen), primarily owing to an increase in subsidiary stores, an increase in depreciation expenses due to the commencement of operations at the Tohoku Distribution Center and upgrades to existing store facilities, an increase in personnel costs aimed at strengthening our human resource base, higher store operation costs, higher logistics costs, an increase in goodwill amortization due to the consolidation of Y’s Road Yellow Hat Inc., as well as one-time costs arising from the relocation and renovation of distribution facilities and improvements to systems infrastructure carried out throughout the fiscal year.
As a result, operating profit was 15,087 million yen (97.6% year-on-year, or down 363 million yen), and ordinary profit was 16,582 million yen (98.5% year-on-year, or down 256 million yen). Profit attributable to owners of parent was 11,968 million yen (106.3% year-on-year, or up 707 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 114,925 million yen (117.0% year-on-year, or up 16,724 million yen), while the Wholesale Division recorded net sales of 46,049 million yen (99.8% year-on-year, or down 78 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.
May 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 fiscal year ended March 31, 2026, the Japanese economy showed a mild recovery in economic conditions along with improvements in employment and income conditions, leading to signs of recovery in personal consumption. However, the future outlook remains uncertain, with concerns that could lower consumer sentiment, such as the impact of U.S. trade policies, continued price increases, as well as the impact of escalating tensions in the Middle East on resource prices and supply chains.
In the auto parts and accessories industry, in which the Company operates, tire sales performed strongly throughout the period due to price revisions implemented by various tire manufacturers, which generated rush demand before the price increases. Additionally, in-store sales of expendable auto parts such as oil and batteries progressed steadily, driven by driving demand for travel and homecoming visits. Although sales of winter products were sluggish due to the high temperatures in December, the tire changeover season in March produced solid results, supported by the robust demand seen throughout the year.
In this environment, the Group actively implemented key measures to meet the needs of customers who rely on cars as their daily transportation. Specifically, we strengthened our product lineup and inventory system for tires, which are core products, and began full-scale early deployment of seasonal products, including sunshades, in preparation for summer. Furthermore, in installation and maintenance services, we issued notifications regarding the extension of the vehicle inspection acceptance period from one month to two months due to regulatory changes in April 2025, and promoted proposals for body coating and air conditioning services. Additionally, we improved convenience by adding a same-day oil change reservation feature to the Yellow Hat official app we have been rolling out. As a result, the number of online reservations for our services increased significantly, reaching 157% year-on-year. We also began handling direct auto insurance in collaboration with NTT DOCOMO, INC. as part of a new initiative to support customers’ car life. Through these series of initiatives, we were able to serve many customers during the period.
As a result, the Group’s operating results for the fiscal year ended March 31, 2026 were as follows.
During the fiscal year under review, 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. As a result, net sales amounted to 171,280 million yen (111.2% year-on-year, or up 17,213 million yen), and gross profit was 74,477 million yen (110.5% year-on-year, or up 7,085 million yen).
Selling, general and administrative expenses amounted to 59,389 million yen (114.3% year-on-year, or up 7,449 million yen), primarily owing to an increase in subsidiary stores, an increase in depreciation expenses due to the commencement of operations at the Tohoku Distribution Center and upgrades to existing store facilities, an increase in personnel costs aimed at strengthening our human resource base, higher store operation costs, higher logistics costs, an increase in goodwill amortization due to the consolidation of Y’s Road Yellow Hat Inc., as well as one-time costs arising from the relocation and renovation of distribution facilities and improvements to systems infrastructure carried out throughout the fiscal year.
As a result, operating profit was 15,087 million yen (97.6% year-on-year, or down 363 million yen), and ordinary profit was 16,582 million yen (98.5% year-on-year, or down 256 million yen). Profit attributable to owners of parent was 11,968 million yen (106.3% year-on-year, or up 707 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 114,925 million yen (117.0% year-on-year, or up 16,724 million yen), while the Wholesale Division recorded net sales of 46,049 million yen (99.8% year-on-year, or down 78 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.
May 2026
Yasuo Horie
(Representative Director and Chairperson)
Akio Kimura
(Representative Director and President)
