UP GARAGE GROUP Co.,Ltd. [7134.T]
TOKYO, May 18 (Pulse News Wire) – UP Garage Group CO.,LTD. (7134.T) reported robust fiscal year 2026 results, achieving double-digit revenue growth despite initial downward revisions.
The company attributed the strong performance to increased winter tire demand due to cold weather and subsequent summer tire sales as temperatures rose. Additionally, improved sales to long-term trading partners bolstered circulation and wholesale operations. Regarding franchise royalties, the company raised rates from ３% to 3.8% of total sales, aiming to enhance overall chain quality rather than solely boosting headquarters profits.
While geopolitical tensions in the Middle East currently have limited direct impact, rising crude oil prices could further drive consumer preference towards used goods. The company plans continued expansion across Japan, adapting store locations from roadside to shopping centers while maintaining robust inventory levels and staffing through increased hiring and training programs. In the United States, both stores showed positive trends, with the Ontario location turning profitable since February.
Leveraging insights gained from existing operations, UP GARAGE GROUP intends to open another California-based store within the fiscal year.
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