Japan Retail Sector "Lawson Q1 FY2/27 results and implications" Kazahaya

Research evidence excerpt

Japan Retail Sector "Lawson Q1 FY2/27 results and implications" Kazahaya

Global Research

17 July 2026ab

Japan Retail Sector Equities

JapanLawson Q1 FY2/27 results and implications

Retail

Takahiro Kazahaya

Summary Analyst

Major convenience store operator Lawson (unlisted) announced (Japanese only) Q1 takahiro.kazahaya@ubs.com

FY2/27 results on 16 July. In this note we summarise the main points and implications. +81-3-5208 6226

Kazuki Oike

Q1 FY2/27: BP at record high, profit growth driven by parent and domestic Analyst

operations kazuki.oike@ubs.com

+81-3-5208 6964

Q1 FY2/27 business profit (BP) (IFRS) rose 19% yoy to ¥32.4bn. BP increased by ¥5.2bn

yoy, with charge income boosting profit by ¥5.5bn, a ¥2.5bn negative impact from Hirotaro Hasegawa

marketing initiative costs, a ¥0.5bn increase from utility costs, a ¥0.5bn decrease from IT Associate Analyst

costs and other expenses, a ¥1.5bn positive impact from group companies, and a hirotaro.hasegawa@ubs.com

+81-3-5208 6684

¥0.5bn boost from others. In addition to strength for the parent company, profit growth

for group companies also contributed to the overall result. For group companies,

domestic CVS operations had a ¥0.5bn positive impact and entertainment boosted

profits by ¥1bn.

Lawson parent entity: profitability also improved with 23% OP increase

Parent results are disclosed under Japanese standards, with parent all chain store sales

up 3% yoy at ¥659.3bn, OP rising 23% yoy to ¥16.3bn, and the all chain store

OP margin improving 0.4ppt to 2.5%. Higher charge income and other factors offset

increases in IT costs and marketing-related expenses, while utilities costs also

contributed to higher profit. The number of parent company stores decreased by 68

since the start of the fiscal period to 14,020 outlets.