Shares of and ST HD Co., Ltd. (ACOLF,2685.T) were down around 5 percent on the Tokyo Stock Exchange after the fashion company on Monday reported lower net profit in fiscal 2026 due to extraordinary losses, despite higher sales. Looking ahead for fiscal 2027, the company projects higher profit and sales.
Net profit for the year fell 1.2 percent to 9.498 billion Japanese yen or 205.86 yen per share from 9.614 billion Japanese yen or 208.93 yen per share last year, due to extraordinary losses.
However, ordinary profit increased 5.4 percent from last year to 16.827 billion yen. Operating profit grew 6.5 percent to 16.524 billion yen from 15.510 billion yen in the prior year.
For the financial year 2026, net sales increased 3.8 percent to 304.351 billion yen from 293.110 billion yen in the previous year. The company noted that sales and profit performance did not meet its initial forecasts due to challenges in responding to climate change in Japan and overseas, as well as the impact of the performance of major brands.
Further, for fiscal 2026, and ST HD expects to pay a year-end dividend of 45 yen per share, lower than last year's 55 yen per share. The full-year dividend would be 90 yen per share, same as last year.
For the fiscal year ending February 2027, the company maintained interim and final dividend at 45 yen per share each, resulting in full-year dividend of 90 yen per share.
Looking ahead to the next year, and ST HD forecasts net income attributable to owners of the parent of 10.500 billion yen or 227.63 yen per share, representing a 10.5 percent increase from last year, Ordinary profit of 17.200 billion yen, an increase of 2.2 percent, and operating profit of 17.200 billion yen, up 4.1 percent year-over-year.
Consolidated net sales are expected to be 314.000 billion yen, marking a 3.2 percent gain year- over- year.
On the Tokyo stock exchange, shares of and ST HD closed Monday's regular trading 4.61 percent lower at 2,919.00 yen.
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