TOP CULTURE plunges after revising FY10/2026 earnings forecast to 'undetermined'

TOP CULTURE Co.,Ltd. <7640> shares tumbled after revising its consolidated forecast for the year ending October 2026 to "undetermined" after the close on June 11.

The revision reflects ongoing renovations at existing stores and continuing deliberations on future operational policies, including potential renovations, for stores inherited in April. TOP CULTURE expects the impact on earnings to vary depending on the outcome of those deliberations.

The company also reported first-half results for the period ended April. Net sales rose 1.0% year-on-year to 9.398 billion yen, while operating profit reached 142 million yen, reversing a 111 million yen operating loss a year earlier. Net profit was 812 million yen, compared with a 262 million yen net loss a year earlier.

Sales were supported by solid performance in its core books and stationery segments, alongside contributions from new initiatives including its Kaitai Daikichi buyback business, amusement operations, and subsidiaries' card and cafe businesses. Sales from Meibundo, acquired in April, also contributed. However, both net sales and operating profit missed initial projections, weighed down by store closures and higher-than-expected renovation costs. Conversely, net profit significantly exceeded forecasts due to a bargain purchase gain.

Source: MINKABU PRESS

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