TSE-3349 Store Growth Lifts Sales 8.7% as Margins Narrow

The Tip Desk · August 27, 2026 · 3 min read

TSE-3349 reported a 3.4% rise in net income attributable to parent company shareholders for the fiscal year ended May 2026.

TSE-3349 posted consolidated revenue of 1,099,583 million yen for the fiscal year ended May 31, 2026, up 8.7% from the prior year.

The company opened 105 new stores over the year, including 24 in the Kanto region, 23 in Chubu, 17 in Kansai, seven in Chugoku, nine in Shikoku and 25 in Kyushu, and closed six stores, ending the fiscal year with 1,708 stores in operation.

General food sales, one of the company's merchandise categories, rose 11.7% to 691,670 million yen for the fiscal year.

Gross profit margin narrowed by 0.2 percentage point to 20.9% for the fiscal year, as TSE-3349 restrained its pass-through of inflation-driven cost increases into prices to preserve its price positioning.

Selling, general and administrative expenses rose 8.4% to 187,330 million yen, which the company attributed to rising costs from inflation together with an increase in the number of stores.

Consolidated operating profit rose 4.8% to 42,353 million yen for the fiscal year.

Net income attributable to parent company shareholders rose 3.4% to 32,046 million yen for the fiscal year.

TSE-3349's ratio of ordinary income to total assets came to 8.0% for the fiscal year.

The company's medium-to-long-term financial target is to maintain or improve its ratio of ordinary income to total assets.

Total assets grew 13.7% to 596,485 million yen at fiscal year-end.

Fixed liabilities rose 54.2% to 71,891 million yen, an increase the company attributed mainly to a 24,687 million yen rise in long-term borrowings.

The equity ratio fell by 1.5 percentage points to 47.6% at fiscal year-end.

Cash and cash equivalents decreased by 3,797 million yen from the prior fiscal year-end to 53,241 million yen, a decline of 6.7%.

TSE-3349 targets a trade-area population of about 10,000 people per store, in contrast to the larger trade areas that many retail peers pursue to maximize scale.

TSE-3349 said that selling pharmaceuticals and providing dispensing services requires it to staff outlets with licensed pharmacists or registered sellers of pharmaceuticals under Japan's pharmaceutical and medical device law.

TSE-3349 flagged that earthquakes, typhoons or other natural disasters causing physical damage to its stores and other facilities, or disruptions affecting suppliers and distribution networks, could affect group performance.

TSE-3349 said that difficulty securing store properties or delays in regulatory review under the Large-Scale Retail Store Location Act could change or delay its plans for new store openings and expansions, with possible effects on group performance.

TSE-3349 said that if hiring and training of store operations staff fail to keep pace with the rate of store expansion, the company could face a slower pace of new-store openings and reduced customer service, with possible effects on group performance.