Aeon Hokkaido Corporation
7512・Standard Market・Retail Trade
Aeon Hokkaido Corporation (Single Segment: Retail Business)
Aeon Hokkaido, the Hokkaido-based retail subsidiary of the Aeon Group operating GMS (General Merchandise Store), SM (Supermarket), and DS (Discount Store) formats across Hokkaido
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (first quarter cumulative) | ¥93,723 million | ¥91,791 million | ↑ |
| Operating profit (first quarter cumulative) | ¥909 million | ¥970 million | ↓ |
| Ordinary profit (first quarter cumulative) | ¥798 million | ¥888 million | ↓ |
| Net income for the quarter (first quarter cumulative) | ¥475 million | ¥737 million | ↓ |
| Cash flow from operating activities (first quarter cumulative) | ¥1,398 million | ¥9,216 million | ↓ |
| Total assets | ¥194,318 million | ¥193,483 million | ↑ |
| Equity ratio | 37.3% | 38.4% | ↓ |
| Net income per share for the quarter | ¥3.42 | ¥5.29 | ↓ |
| Full-year net sales forecast | ¥392,000 million | ¥380,063 million | ↑ |
| Full-year operating profit forecast | ¥8,700 million | ¥8,332 million | ↑ |
| Full-year net income forecast | ¥3,000 million | ¥3,732 million | ↓ |
| Number of iAEON members (end of first quarter) | 840,000 | 800,000 | ↑ |
Business Details
A retail business company that develops GMS, SM, DS (Discount Store), and other formats across Hokkaido, with Aeon Co., Ltd. as its parent company. Its core categories are apparel, food, and household/leisure goods, with food accounting for approximately 80% of net sales. Under the management vision of being "a company that supports health and wellness in Hokkaido," the company launched a new medium-term management plan starting in FY2026 (ending March 2026)... [note: fiscal year term below]. The company is advancing its business along four pillars: "evolution of each business format," "product-focused reform," "building a robust business foundation," and "promotion of sustainable management."
Recent Overview
Net sales reached a record high, but net income fell 35.5% year-on-year due to weakness in the apparel division and recording of extraordinary losses
Net sales for the first quarter of FY2027 (ending February 2027) (March to May 2026) reached a record high of ¥93,723 million (up 2.1% year-on-year). All formats—GMS, SM, and DS—recorded increased sales. On the other hand, the apparel division, which has a high gross margin, fell short of plan at 99.2% year-on-year amid rising thrift-oriented consumer sentiment, and intensifying competition caused the gross margin to fall below expectations, limiting operating profit to ¥909 million (down 6.3% year-on-year). In addition, extraordinary losses of ¥146 million were recorded, including an impairment loss of ¥110 million and a disaster-related loss of ¥28 million, resulting in a substantial decline in net income for the quarter to ¥475 million (down 35.5% year-on-year). Interest expenses also increased to ¥157 million (from ¥118 million in the same period of the previous year). There is no change to the full-year earnings forecast (net sales of ¥392,000 million, operating profit of ¥8,700 million).
Key Products
Growth Drivers
- Continued strong performance of the DS format (existing-store sales up 103.2% year-on-year in the first quarter) and capture of thrift-oriented consumer spending
- Growth in the household/leisure division (up 109.0% year-on-year; existing-store sales up 109.2%), boosting average customer spend
- Strengthened price appeal through 108.2% year-on-year existing-store sales growth of TOPVALU Best Price
- Expansion of the digital customer platform and enhanced coupon promotions as iAEON app membership reaches 840,000
- Improved operational efficiency and labor productivity per man-hour (104.5% in the SM format) through DX initiatives such as automated ordering systems, electronic shelf labels, and smartphone self-checkout
- Enhanced overall facility value through tenant recruitment that is a first for both Hokkaido and the company
- Establishment of a new merchandising model in the GMS livestock products division (existing-store sales up 105.2% year-on-year), boosting the food division overall
- Concretization of "evolution of each business format" and "product-focused reform" as the new medium-term management plan for FY2026 (ending March 2026) gets underway
Risks
- Sustained elevated thrift-oriented and defensive consumer sentiment amid continued price inflation
- Continued weakness in the apparel division (99.2% year-on-year in the first quarter) and delays in improving gross margin
- Various cost increases stemming from instability in the international situation (employee salaries and bonuses: ¥10,126 million, up 103.0% year-on-year)
- Expansion of financial expense burden due to increased interest expenses (¥157 million, up 133.1% year-on-year)
- Expansion of interest-bearing debt due to an increase in short-term borrowings (¥22,500 million, up ¥3,800 million from the end of the previous fiscal year)
- Risk of extraordinary losses from impairment losses, disaster-related losses, and similar items (¥146 million recorded in the first quarter)
- Pressure on earnings in the second half, as indicated by the full-year net income forecast of ¥3,000 million (down 19.6% year-on-year)
- Contraction of regional markets due to Hokkaido's population decline, low birthrate and aging population, and population concentration in the Sapporo area
- Risk that gross margin may fail to meet expectations due to intensifying competitive conditions
Last updated: May 15, 2026