27/2 Q1 results: We like progress with cost savings: Quick Note

研报英文原文证据摘录

27/2 Q1 results: We like progress with cost savings: Quick Note

Global Markets Research

29 June 2026Shimamura

8227.T 8227 JP / EQUITY: JAPAN RETAILING

27/2 Q1 results: We like progress with cost Rating Neutralsavings

Target price JPY 3,500Quick Note

Closing price

29 June 2026 JPY 3,313First impression positive: Q1 profits beat our forecast on strong demand for

summer merchandise, cost savings (Note: Quick Note reports are not a

Shimamura released 26/2 Q1 (Mar–May) results and held a briefing after the market close vehicle for changes to ratings, target

on 29 June. Q1 operating profits of ¥17.9bn (up 17% y-y) beat our forecast of ¥15.6bn and prices, or earnings forecasts)

our estimate of ¥16.4bn based on monthly sales. Our view is that Q1 profits compared

favorably to full-year guidance given that overhead reduction benefits emerged sooner

than the company anticipated and hot weather boosted sales and the gross margin.

The Q1 gross margin of 35.0% was higher than the prior-year figure of 34.9% and our Research Analysts

forecast of 34.8%. The gross margin at the mainstay Shimamura segment of 34.2% was Japan retailing

higher than our forecast of 33.9%. The gross margin at the segment fell slightly y-y, partly

Shintaro Umeda - NSCbecause of the high prior-year comparison base of 34.3%. However, the gross margin at shintaro.umeda@nomura.com

the segment was better than we had expected as strong sales of summer merchandise +81 3 6703 1741

resulting from hot weather kept the rise in the discounting rates to a minimum.

Hisahiro Yamaoka - NSC

Q1 SG&A costs totaled ¥45.9bn (up 5% y-y) versus our forecast of ¥46.9bn. The main hisahiro.yamaoka@nomura.com

discrepancies versus our forecast were some costs associated with the introduction of +81 3 6703 1680