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Tea Life extends losses in late afternoon trading, hitting new yearly low as it forecasts operating profit decline

Thu Jun 4, 2026 3:20 pm JST Catalyst

Shares of Tea Life Co.,Ltd <3172> extended losses in late afternoon trading on Thursday, hitting a new year-to-date low. Around 3:00 p.m., Tea Life revised its full-year earnings forecast alongside the announcement of its cumulative third-quarter consolidated financial results for the fiscal year ending July 2026. The company lowered its net sales forecast to 11.11 billion yen (down 3.4% year-on-year) from the previous estimate of 11.98 billion yen, and its operating income forecast to 258 million yen (down 43.3% year-on-year) from 533 million yen. With operating and ordinary income now projected to decline instead of grow, selling pressure intensified as investors reacted to the deteriorating business performance.

In the wellness segment, net sales declined due to market headwinds, including sluggish growth in TV shopping, contraction of the catalog mail-order market, and intensifying competition in e-commerce malls. On the profit front, rising raw material costs, higher shipping fees, and increased platform commissions, alongside upfront investments for the U.S. market, weighed on earnings. For the cumulative third-quarter period, net sales were 7.96 billion yen (down 8.2% year-on-year) and operating income was 195 million yen (down 31.7% year-on-year).

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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