Treasure Factory Reports Strong Q1 Results, Raises Full-Year Forecast

TOKYO, Jul 31 (Pulse News Wire) – Treasure Factory CO.,LTD. (3093.T) reported robust first-quarter results, driven by higher sales and gross profit margins despite stable selling and administrative expenses.

The strong performance was attributed to increased demand for reused goods due to cost-cutting trends and early summer merchandise purchases. Additionally, anticipation of stricter energy efficiency standards in 2027 boosted appliance replacement needs. The company raised its full-year forecast, incorporating the positive Q1 results and projecting a higher growth rate for existing store sales in the second half of the fiscal year compared to previous estimates. However, it expects a decline in profitability for the second quarter due to weather-related challenges and high comparables from last year's anniversary campaign.

Regarding operational improvements, the firm adjusted buyback rates, reducing the maximum limit, which positively impacted gross margin ratios. While this adjustment made some high-value items less accessible in certain stores, overall procurement remained steady. Enhanced channels such as home visits and delivery services saw significant growth, contributing to inventory supply for planned expansion. The company also emphasized its e-commerce strategy, increasing online sales and integrating physical store inventories with digital platforms to maximize sales opportunities.