26/10 Q2 results: Gross margin improves q-q: Quick Note

Research evidence excerpt

26/10 Q2 results: Gross margin improves q-q: Quick Note

Global Markets Research

15 June 2026Gift Holdings

9279.T 9279 JP / EQUITY: JAPAN RETAILING

Rating26/10 Q2 results: Gross margin improves q-q Buy

Target price JPY 5,200Quick Note

Closing price

15 June 2026 JPY 4,195First impression slightly positive: Q2 operating profits slightly ahead of our forecast

The company announced 26/10 Q2 results after the close on 15 June. A briefing is (Note: Quick Note reports are not a

scheduled for 16 June. In 26/10 Q2 (Feb–Apr), operating profits rose 56% y-y to ¥1.21bn, vehicle for changes to ratings, target

slightly higher than our ¥1.12bn forecast. The outperformance versus our forecast was prices, or earnings forecasts)

mainly due to a further 0.4ppt q-q improvement in the gross margin. The company has

been able to reduce costs since March by making changes to the portion of pork it uses.

The gross margin has also been improving thanks to higher capacity utilization at the

company's own plants. Research Analysts

The company reported 303 stores in the company-owned store business (up 16 from end- Japan small cap

25/10) and 627 stores in the produced stores business (up 13), in line with our forecasts. Satoshi Sakae - NSC

As in other years, the pace of store openings in H1 was low relative to full-year guidance, satoshi.sakae@nomura.com

but this is due to seasonal factors. The number of employees rose, partly owing to the +81 3 6703 3899

hiring of new graduate in the spring, and the company said it aims to increase the pace of

store openings in H2.

In H1, same-store sales rose 3.8% y-y at company-owned stores in Japan and 3.1% at

produced stores in Japan. The boost from price hikes has more or less run its course, but

growth has been driven by higher customer footfall.