Hiraki Reports Lower-than-Estimated Quarterly Results

TOKYO, May 15 (Pulse News Wire) – Hiraki CO.,LTD. (3059.T) reported its quarterly results for the fiscal year ending March 31, 2026, revealing lower-than-estimated figures compared to previous forecasts.

For the fiscal year from April 1, 2025, to March 31, 2026, the company's revenue was ¥11.895 billion, falling below the previously forecasted amount. Operating profit stood at -¥320 million, while ordinary profit reached -¥313 million, also undershooting expectations. Net income attributable to shareholders of the parent company amounted to -¥426 million, down significantly from the estimated -¥310 million. Sales performance varied across segments.

The footwear specialty stores, which opened five new outlets, showed steady progress, aligning closely with projections. However, e-commerce sales fell short due to sluggish growth in promotional items and poor winter merchandise sales during warmer weather conditions. Efforts to cut expenses through cost reevaluation and implementing large-scale campaigns in e-commerce helped stabilize orders in the fourth quarter. Despite these measures, revenues remained below plan, leading to reduced gross margins and additional special losses totaling ¥116 million related to impairment charges recorded in the e-commerce division.

Overall, the company’s performance did not meet initial estimates, reflecting challenges primarily within the e-commerce sector.