Retail & restaurant sectors: 4Q results review

Research evidence excerpt

Retail & restaurant sectors: 4Q results review

18 May 2026

Mizuho Securities Equity Research Retail / Retailing

Industry Overview

Retail & restaurant sector investment strategy (May 2026)

Spotlight: See Figure 3 for key reports ACT: 4Q results review

on the retail and restaurant sectors For 82 major retailers and restaurant operators in 4Q FY25 (Dec–Feb or

Jan–Mar depending on the company), aggregate sales were up 5.6% andSenior Analyst:

OP was up 10.5%, marking the 17th straight quarter of OP growth. WhileToshio Takahashi

+81 3 6202 8325 the record warm winter temperatures in December had a partially negative

toshio.takahashi@mizuho-sc.com impact on companies closing books in Dec–Feb, weather conditions were

generally favorable in Jan–Mar. In addition, retailers rolled out merchandiseSenior Analyst: and sales strategies tailored to changes in consumer behavior, such asHideya Asaeda polarization in consumption and more selective spending, which supported+81 3 6202 8598

broadly steady sales trends overall.hideya.asaeda@mizuho-sc.com

By subsector, profits grew by double digits for department stores, specialty

apparel retailers/apparel, home improvement centers and furniture stores,

and restaurants, and also grew at general retailers/general merchandise

stores. At drugstores, sales of cold medicines were sluggish, and Tsuruha

Holdings (3391) saw a heavy increase in goodwill amortization, resulting

in only slight profit growth. Meanwhile, profits declined at supermarkets,

convenience stores, and home appliance retailers.

KNOW: Ability to execute response to external changes is key

Amid expectations for cost increases and inflation driven by the situation

in the Middle East, consumers—growing weary of prolonged inflation—