Apr-Jun Results Preview

Research evidence excerpt

Apr-Jun Results Preview

Idea

July 29, 2026 09:13 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MSpecialty Stores | Japan Hiroshi Koba

Equity Analyst

Apr-Jun Results Preview Hiroshi.Koba@morganstanleymufg.comAi Furukawa +81 3 6836-8942

Ai.Furukawa@morganstanleymufg.com +81 3 6836-5461

Specialty retail earnings for Apr-Jun likely to be mixed. Consumer

electronics retailers should deliver solid earnings growth,

supported by strong demand for air conditioners, etc. However,

some continue to face rising costs and have yet to find catalysts

for sales recovery. Near term, investors are likely to focus on 1Q Specialty Stores

GPM trends as well as Jul orders/sales (peak summer selling JapanIndustry View In-Line

season).

We believe demand trends across products had a significant impact on Apr-Jun Q

earnings: Although end-June order backlogs remain an important point to monitor,

we expect strong results from Yamada Holdings, supported by a sharp increase in

orders during Apr-May, led primarily by air conditioners. We also expect

MatsukiyoCocokara & Co. to deliver resilient earnings, with solid pharmaceutical and

cosmetics sales and expansion of private-brand products offsetting weaker food

sales following a high base last year. In contrast, while Nitori Holdings has made

progress in refreshing its product lineup, we have yet to see a sufficient recovery in

orders. Combined with ongoing yen weakness, we believe earnings growth is likely

to remain subdued.

In the near term, investors are likely to focus on Apr-Jun GPM and orders in July

(summer sales peak): We see two focus points for the near term. First, gross

margins, as retailers continue to face cost pressures from procurement, labor, and

other costs. The ability to preserve gross margins through pricing actions and