HOUSE OF ROSE, The Current Fiscal Year Ordinary Profit Revised Downward by 37%

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Wed Feb 5, 2025 2:00 pm JST Earnings

7506 HOUSE OF ROSE Co.,Ltd. 【J-GAAP】

Earnings Report

HOUSE OF ROSE Co.,Ltd. <7506> [TSE Std] announced its financial results in the afternoon session on February 5th (14:00). The ordinary profit (non-consolidated) for the cumulative third quarter of the fiscal year ending March 2025 (April to December) significantly dropped 88.5% from the same period last year to 29 million yen.

In addition, the full-year ordinary profit has decreased 36.9%, from the previous forecast of 293 million yen to 185 million yen (compared to 373 million yen in the previous period), leading to an increase in the profit decline rate from 21.4% to 50.4%.

Based on the full-year plan announced by the company after the downward revision, our estimate of the ordinary profit for the October to March period (2H) has decreased 30.9%, from the previous forecast of 349 million yen to 241 million yen (compared to 344 million yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 29.9% decrease in profit.

In the most recent three-month period, from October to December (3Q), the ordinary profit significantly dropped to 85 million yen, a 61.9% decrease compared to the same period last year. The operating profit margin drastically worsened from 6.9% in the same period last year to 2.8%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Dec, 2022	9,019	137	169	61	13.2	89.9	Feb 3, 2023	J-GAAP
Apr - Dec, 2023	9,071	246	252	105	22.5	67.6	Feb 5, 2024	J-GAAP
Apr - Dec, 2024	8,739	24	29	-43	-9.3	15.7	Feb 5, 2025	J-GAAP
YoY	-3.7%	-90.2%	-88.5%	－	－

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	6,492	360	349	181	38.5	12.50	Nov 5, 2024	J-GAAP
Oct - Mar, 2024 New	5,992	220	241	171	36.4	12.50	Feb 5, 2025	J-GAAP
Revision Rate	-7.7%	-38.9%	-30.9%	-5.5%	-5.5%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	12,200	300	293	100	21.3	25	May 14, 2024	J-GAAP
Mar, 2025 New	11,700	160	185	90	19.1	25	Feb 5, 2025	J-GAAP
Revision Rate	-4.1%	-46.7%	-36.9%	-10.0%	-10.0%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	6,136	342	344	149	31.7	12.50	May 14, 2024	J-GAAP
Oct - Mar, 2024 Guidance	5,992	220	241	171	36.4	12.50	Feb 5, 2025	J-GAAP
YoY	-2.3%	-35.7%	-29.9%	+14.8%	+14.8%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	11,905	153	188	511	108.9	25	May 15, 2023	J-GAAP
Mar, 2024	11,989	367	373	122	26.0	25	May 14, 2024	J-GAAP
Mar, 2025 Guidance	11,700	160	185	90	19.1	25	Feb 5, 2025	J-GAAP
YoY	-2.4%	-56.4%	-50.4%	-26.2%	-26.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	3,218	221	223	132	28.3	6.9	Feb 5, 2024	J-GAAP
Jan - Mar, 2024	2,918	121	121	17	3.6	4.1	May 14, 2024	J-GAAP
Apr - Jun, 2024	2,683	-145	-143	-130	-27.8	-5.4	Aug 5, 2024	J-GAAP
Jul - Sep, 2024	3,025	85	87	49	10.5	2.8	Nov 5, 2024	J-GAAP
Oct - Dec, 2024	3,031	84	85	38	8.2	2.8	Feb 5, 2025	J-GAAP
YoY	-5.8%	-62.0%	-61.9%	-71.2%	-71.1%