Japan retailing sector: 26/8 Q3 and 27/2 Q1 results

Research evidence excerpt

Japan retailing sector: 26/8 Q3 and 27/2 Q1 results

Japan retailing sector: 26/8 Q3 Global Markets Research 11 July 2026

and 27/2 Q1 results

EQUITY: JAPAN RETAILING

Research Analysts

Aeon, Ryohin Keikaku Japan retailing

Hisahiro Yamaoka - NSC

hisahiro.yamaoka@nomura.comQuick Note +81 3 6703 1680

Aeon [8267] (Neutral): 27/2 Q1 results

First impression in line: Strong performance at developer segment, weak

performance at GMS and supermarket segments

In 27/2 Q1, operating profits rose 34% y-y to ¥75.2bn. Profits fell at the supermarket and

GMS segments but rose overall thanks to sharp profit growth at the health & wellness and

developer & entertainment segments. Food retail-related margins look to have remained

weak as the company has continued to step up its discounting. However, profits at the

health & wellness segment were strong, although this had already been evident from

results announcements at subsidiaries. Operating profits at the developer and

entertainment segment rose 43% y-y to ¥27.8bn, which we view as strong performance.

Earnings at Aeon Mall in particular look to have benefited substantially from stores that

have been revitalized in recent years in a bid to provide experiential value. Overall, results

were a mixed bag, on which basis our first impression is in line. We think the main

challenge the company is facing is margins at the GMS and supermarket segments. The

company is looking to improve earnings at food retailing operations by pushing ahead with

initiatives to improve prices and sales promotions. However, we think business conditions

remain tough, with consumers continuing to tighten their purse strings, and we still see

few grounds for optimism about earnings.

Ryohin Keikaku [7453] (Buy): 26/8 Q3 results