SUNDAY CO..,LTD.

Business Details

Operates home centers across the six Tohoku prefectures of Aomori, Iwate, Akita, Miyagi, Yamagata, and Fukushima. The company's mainstay offerings are DIY goods, household goods, and car/leisure goods, selling home-and-living-related products to general consumers. It also handles sales of DIY, car, and leisure-related products in the Tohoku area for the Aeon Group. The company also operates value-added services such as the pet specialty store "Zoomore" and the delivery/installation service "SUN Kyubin" (Delivery & Installation Service). It is also promoting a shift toward the "Home Mart" format, which incorporates a grocery section including fresh food.

Recent Overview

Operating profit turned positive for cumulative Q3; the company resolved to support Aeon's TOB and to omit the year-end dividend

For the cumulative nine months of Q3 FY2026 (ending February 2026) (March–November 2025), sales were ¥36,163 million (up 1.5% year on year), and operating profit turned positive at ¥15 million (versus ¥-55 million in the same period of the prior year). In Q3 alone, winter-preparation items, heating equipment, and snow-removal-related products showed growth, leading to increases in both sales and customer traffic. On the other hand, the company recorded ¥139 million in extraordinary losses, including store closure losses at unprofitable stores, resulting in a quarterly net loss of ¥-42 million. On January 8, 2026, the company announced its support for the tender offer (TOB) by its parent company Aeon, and resolved to omit the year-end dividend and abolish the shareholder benefit program, contingent on the TOB's success. As a subsequent event, some stores were damaged by the earthquake off the eastern coast of Aomori Prefecture in December 2025, but all stores resumed operations the following day, and the impact was minor.

Key Products

Growth Drivers

• Growth in winter demand (heating equipment, snow-removal-related products, cold-weather clothing, kerosene): both sales and customer traffic increased in Q3 alone of FY2026 (ending February 2026)
• Strengthened customer attraction through the Home Mart format conversion: establishment of a new business model through conversion to one-stop clothing, food, and living stores at the Kamaishi and Morioka stores
• Strong performance of Pet Specialty Store Zoomore: sales and operating profit exceeded the prior-year level due to a highly specialized product lineup and event hosting
• Expansion of SUN Kyubin: capturing delivery and installation demand in aging and depopulating areas, with orders received and sales exceeding the prior-year level
• Expansion of non-operating income: total non-operating income increased to ¥212 million (versus ¥105 million in the same period of the prior year), driven by rental income received of ¥110 million and insurance income received of ¥78 million
• Efficiency improvement in SG&A expenses: selling, general and administrative expenses decreased from ¥11,387 million to ¥11,345 million year on year

Risks

• Intensifying competition across industries and business formats: the competitive environment in the home center industry continues to intensify
• Rising consumer thrift and cost-conscious sentiment: price increases are leading to reduced purchases of durable consumer goods, pressuring customer traffic and items purchased per customer
• Cost increase pressures: personnel expenses (salaries and wages for cumulative Q3 were ¥4,266 million, up year on year), utility costs, and elevated raw material prices are pressuring profitability
• Weather risk: unseasonably cold or unstable weather in early spring affects demand for seasonal products (gardening, agricultural materials, outdoor goods) (this affected Q1 of FY2026 ending February 2026)
• Unprofitable store risk: continued recording of impairment losses of ¥39 million and store closure losses of ¥100 million (total extraordinary losses of ¥139 million for cumulative Q3 of FY2026 ending February 2026)
• Natural disaster risk: some stores were damaged by the earthquake off the eastern coast of Aomori Prefecture in December 2025, reflecting natural disaster risk particular to the Tohoku region (the financial impact is under review)
• TOB and delisting risk from Aeon: the company resolved to omit the year-end dividend and abolish the shareholder benefit program contingent on the TOB's success, raising the possibility of delisting
• Increase in interest expense: interest expense for cumulative Q3 rose sharply to ¥87 million (versus ¥46 million in the same period of the prior year), raising financial costs