Pan Pacific International net profit rises 21.6%
Tax-free sales reached a record.
Pan Pacific International Holdings Corporation (TSE-7532) reported net profit attributable to owners of the parent of 110,088 million yen for the fiscal year ended June 30, 2026, an increase of 21.6% from the previous year.
Pan Pacific International’s annual revenue rose 8.8% from the previous year to 2,445,260 million yen.
Pan Pacific International’s domestic business recorded revenue of 2,068,195 million yen, an increase of 9.1% from the previous year.
Pricing and promotional measures tailored to changes in shopping behavior increased customer traffic at existing domestic stores as consumers became more sensitive to prices and more focused on protecting their household budgets.
Strong domestic sales of merchandise featuring intellectual property popular with customers and products reflecting current trends contributed to revenue growth as consumers became more selective about their purchases.
Tax-free sales reached a record as Pan Pacific International’s approach to attracting overseas visitors without relying on a single country brought more customers from Southeast Asia, Europe and the Americas.
The opening of 25 new stores contributed to the increase in revenue at Pan Pacific International’s domestic business.
Improved labor productivity restrained the increase in selling, general and administrative expenses as a proportion of revenue, contributing to an increase in operating profit.
Pan Pacific International’s Asian business recorded operating profit of 5,517 million yen, an increase of 186.0% from the previous year.
Pan Pacific International’s Asian business attracted more customers and increased revenue by improving price competitiveness through merchandise reviews, new products, wider assortments and stronger procurement using local distribution channels across the markets in which it operated.
Operating profit in Asia increased substantially as closing unprofitable stores, reducing waste through better inventory management, developing employees with a focus on local staff and improving labor productivity made selling, general and administrative spending more efficient.
Pan Pacific International’s North American business recorded operating profit of 3,497 million yen, an increase of 53.2% from the previous year.
North American operating profit growth reflected improvements in Guam’s gross profit margin and productivity, together with the absence of the previous year’s inventory disposal associated with a system disruption in Hawaii.
Pan Pacific International opened the first store under its new Robin Hood format in April 2026 and had opened five stores by June 2026, in line with its plan.
Securing staff was an important challenge as nationwide store expansion beyond Pan Pacific International’s principal metropolitan base and a larger business increased personnel requirements amid population decline and a falling birthrate.
Pan Pacific International will concentrate management resources on projects offering high investment efficiency, with allocations intended to support sustainable growth over the medium and long term amid continued weakness in consumer spending and intensifying competition among companies.
Pan Pacific International plans to revitalize Olympic group stores and accelerate domestic store openings in the fiscal year ending June 2027.