Marui Group Co., Ltd. reported strong financial results for the fourth quarter of fiscal 2026, surpassing earnings expectations with an EPS of JPY 158.4, a 6.7% surprise over the forecasted JPY 36.55. Despite this, the company’s stock experienced a 7.39% decline in after-hours trading, closing at JPY 2,761.5. Revenue also exceeded predictions, reaching JPY 71.08 billion against a forecast of JPY 70.96 billion, marking a 0.17% positive surprise.
Marui Group showcased robust growth, achieving an 11% year-over-year increase in EPS and a record-high group total sales of JPY 5.7 trillion. The company continued its upward trajectory with a 13% increase in consolidated operating profit, marking its fifth consecutive quarter of growth. The FinTech segment, in particular, stood out with a record operating profit of JPY 47 billion, driven by a 32% increase in merchant commission rates.
Marui Group’s actual EPS of JPY 158.4 surpassed the forecasted JPY 36.55 by 6.7%. Revenue also slightly exceeded expectations, with a 0.17% positive surprise. This performance aligns with the company’s recent trend of surpassing earnings targets, continuing its streak of positive financial results.
Despite the earnings beat, Marui Group’s stock fell by 7.39% in after-hours trading, closing at JPY 2,761.5. This decline contrasts with the company’s robust financial performance, suggesting potential investor concerns over future growth prospects or broader market conditions. The stock is now trading near its 52-week low of $16.65, with shares down nearly 15% year-to-date. According to InvestingPro analysis, the stock appears overvalued at current levels—a factor that may be contributing to investor caution. Those tracking valuation metrics can explore similar opportunities on InvestingPro’s Most Overvalued stocks list.
Looking ahead, Marui Group is focused on expanding its SUKI-centric business strategy, integrating retail and FinTech offerings. The company anticipates continued growth in its FinTech segment, supported by strategic initiatives and digital transformation efforts. Future EPS forecasts for fiscal 2027 indicate steady growth, with expectations set at 1.08 USD.
For income-focused investors, Marui offers a compelling dividend yield of 4.88%, with dividend growth of 24% over the last twelve months. InvestingPro data reveals the company has maintained dividend payments for 35 consecutive years—a testament to financial stability. The platform offers 6 additional ProTips for Marui Group, along with comprehensive Fair Value analysis and detailed Pro Research Reports covering 1,400+ stocks. These reports transform complex financial data into clear, actionable intelligence for smarter investment decisions.
Marui Group’s executives emphasized the success of their SUKI-centric strategy, highlighting the transformation of the Yokohama store as a model for future expansions. The company remains committed to enhancing customer engagement through personalized offerings and digital innovations.
During the earnings call, analysts inquired about Marui Group’s strategies for mitigating rising operational costs and expanding its digital offerings. Executives reiterated their focus on cost management and leveraging technology to drive efficiency and customer engagement.
Kato, CFO / Financial Executive, Marui Group: My name is Kato. I’ll talk about the overview of the financial results, as well as the outlook for the March end of 2027. First of all, the consolidated financial results. This is the three points in the financial results digest highlights. EPS has increased by 11% to JPY 158.4. ROE is 11.6%. ROIC is 4%. Three indices have been all achieved its targets. In a consolidated operating profit, 13% increase to become JPY 50.2 billion. It is an increase in five consecutive quarters and achieved its target. In segment retail, JPY 2.3 billion increase of the profit. Fintech, JPY 3 billion increase and achieved the targets. Also the 7% increase in JPY 28.5 billion in the current profits and achieved by JPY 500 million to achieve its set plan targets. Financial, 11.6% in ROIC and ROE is 11.6%, exceeding the shareholder equity cost, ROIC exceeding the WACC.
This is the final group, and total sales has a record high, JPY 5.7 billion increase by the previous quarter, JPY 52.2 billion in operating profits, and also JPY 1.9 billion exceeded to become JPY 28.5 billion. The operating profits, current profits also achieved its targets, and the JPY 3 billion increase due to the non-operating expenses, however, the current profits increased by 7%. Extraordinary profits in accordance with the impairment of equity, as well as some of the loss due to the closure of the store. This current profits are 7% increase to achieve JPY 28.5 billion. In the FinTech preference, this is the revenue profit and operating expense profits. Retail operating profits has increased to become JPY 11.2 billion. FinTech operating profits is a record high, JPY 47 billion, for both segments achieved increase the profits.
The retail plus JPY 2.6 billion in FinTech plus JPY 6.8 billion in total expenses plus JPY 100 million, excluding special factors, that is a JPY 9.5 billion increase of profits. Tenant revenue has increased, and as increased, the expense has increased. That is the achieved the JPY 11.2 billion for the rents and the expenses that those proportional rent has increased. This is the transaction volume in the 44 months has increased the previous year, and it is a higher level than the total region department store. In the 111% compared to the previous year. In the tenant revenue segments, the minus JPY 500 million. Due to the variable rents, JPY 2.3 billion increase in the tenant revenue.
This is the card, this is due to the sales increase at the area, non-operating area has decreased, declined to 4,700 stores due to some of the withdrawal of our own store base. Compared 5% increase and now became 70%. As planned, the category has been increasing. The next is the fintech situations. In the fintech, this is the breakdown of the operating profits. This is due to the change of the revolving and installment payments, the JPY 6.8 billion increase in fintech, this is including the special factors, it is a JPY 3 billion increase. The card credit. This is the card and credit card, in the 10% increase, 1.2, this is a JPY 1.2 trillion. This is a record high. This is the merchant commission rate.
This merchant commission rate, due to the revision of the foreign exchange rate fees, they have increased by 32%. This is the revolving and installment payments in that March ending, and the JPY 473.2 billion expanded. This increase, this is if looking at the industry compared to the March, the 1.1 times in 2020 March, but now it is 1.7 times that we are the case compared to the other peers in the industry. This is the commission fee revenue due to the revision of the fees since October, has expanded to JPY 69 billion, which is a JPY 9.4 billion increase. Next is the new memberships in the 2026 March in the entire new card issuance is still not going, but then card supporting the Suica has increased, and increased by 50,000 to achieve the 870,000 peoplemembers.
These are card numbers of membership is the record high JPY 8.3 million. The Suki supporting card members are 1.38 million people. The Platinum Card and Gold Card, the added percentage including that is a ratio is 64%. This is the decline in the repayment of the profits, the repayment of the yield and interest, and so the JPY 1.5 billion has been placed as a provisions for the loss of the repayment of that.
This is the total asset with the account receivable increase compared to last year end, JPY 87.9 billion increase of JPY 1.1413 trillion. Equity ratio compared to last year end, less by 2%, so 21.4%. In terms of the capital allocation, the basic cash flow will be 2.6, borrowing 4.5, 1.8 for growth, and then dividend 21.4, and then the share buyback 7.7. Also, in terms of the human resource investment, 9.7. Total investment is 27.7. ESG situation. The main external valuation, METI Nadeshiko Brand, we were the first nine years in a row selection. Other health-related management, we are the first for retail. We are selected for the last nine years consecutively. In terms of the renewable energy 100%, we have our own solar generation from 2027. We will be improving by 97% for this year, and then we didn’t have our own generator during the Ukraine crisis.
Aoi, CEO, Marui Group: Our electricity bill went up by 30%, 27 March. Even with the Middle East crisis, with the tenants included, we will be +17% rise. It’s half of the Ukraine crisis. In terms of the outlook for March 27, EPS 4% growth, JPY 16.4 billion ROE 11.8% will be higher than previous year. Group total will be 9% increase, JPY 5.9 trillion, operating profit 10% increase to JPY 55 billion, net income will be 4% increase to JPY 9.5 billion. In terms of the ordinary profit, with the interest rate going, we have -JPY 34, we have the operating profit, some 3% increase of the ordinary profit, JPY 44 billion. By segment, this is the operating profit. Retail 3% increase, JPY 11.5 billion. FinTech 8% increase, JPY 51 billion. The retail segment operating profit, plus and minuses, tenant income and event will be expanding.
In terms of the other utility costs, we have increase of JPY 800 million. Lessening of the real estate increase, they will be down of JPY 500 billion, still we will have a JPY 300 million or so operating profit. For FinTech, with the expansion, the merchant fees and the installment and repayment fee changes, actual operating profit will be JPY 3.5 billion. Because of the interest repayment loss that we accounted for last year, there will be JPY 4 billion for the operating profit. Per head dividend. DOE 10%, we will maintain for March 27. It will increase by JPY 300 to JPY 134. We are increasing for the last 15 terms. That’s all from me. Thank you so muc