SHOEI CO., LTD.

Business Details

The Group's sole business is the manufacture and sale of riding helmets, with Motorcycle Helmets (Premium Helmets) accounting for approximately 88% of net sales. Development and manufacturing are conducted on an integrated basis at domestic factories (Made in Japan), while consolidated subsidiaries in Japan and overseas handle sales and marketing. The Group operates in key markets across Europe, North America, Asia, and Japan, achieving unit price increases through a high-quality, high-value-added strategy and the effect of a weaker yen. The business consists of a single segment, and allocation of management resources and performance evaluation are conducted for the Group as a whole.

Recent Overview

Sales volume declined 2.3% year-on-year, but the weaker yen drove increased sales and profit, with Asia expanding rapidly

In FY2026 H1 (ending March 2026) (October 2025 to March 2026), consolidated net sales were ¥15,002 million (up 3.0% year-on-year), and operating profit was ¥4,430 million (up 1.3% year-on-year). Although sales volume declined 2.3% year-on-year, unit prices rose due to the weaker yen effect (¥1 = ¥156.68, a depreciation of ¥3.73 year-on-year; €1 = ¥182.09, a depreciation of ¥20.55 year-on-year), securing increased sales. By region, sales volume in Europe declined 8.7% year-on-year and North America declined 34.6% year-on-year (mainly due to a rebound decline and timing shift following shipments of best-selling products in the same period of the previous year), while thorough execution of brand strategy in the Chinese market succeeded, driving a 50.6% year-on-year increase in Asia sales volume (a 71.1% increase in China alone). In Japan, distribution inventory adjustment continued, resulting in a 15.8% year-on-year decline. Due to increased selling, general and administrative expenses (advertising expenses, etc.), the operating profit margin declined slightly to 29.5% from 30.0% in the same period of the previous year. The equity ratio declined to 82.3% due to the acquisition of treasury shares (1,395,100 shares, ¥2,457 million). Effective April 10, 2026, the 1,395,100 treasury shares were retired (total shares issued after retirement: 52,318,616 shares). The full-year earnings forecast remains unchanged from the figures announced on November 14, 2025 (net sales of ¥33,950 million, operating profit of ¥8,370 million).

Key Products

Growth Drivers

• Rise in unit sales prices and improvement in gross profit margin (49.7% in the interim period) due to the weaker yen effect (¥1 = ¥156.68, €1 = ¥182.09)
• Rapid sales expansion driven by thorough execution of brand strategy in the Chinese market (China sales volume up 71.1% year-on-year in the interim period; Asia overall up 50.6%)
• Improved visibility of second-half sales due to accumulation of order backlog (order backlog of ¥8,147 million at period-end, up 28.1% year-on-year)
• Rise in unit prices through enhanced added value from graphic models and collaboration helmets
• Strengthened product lineup through the global rollout of the J-Cruise3 and the introduction of new models such as the X-Fifteen Carbon
• Expanded sales through PFS introduction and reinforcement of the store-focused sales system in emerging markets such as Southeast Asia

Risks

• Decline in sales volume in Europe due to sluggish consumption and adverse weather (down 8.7% year-on-year in the interim period) and continuing uncertainty about the outlook
• Sharp decline in sales volume in the North American market (down 34.6% year-on-year in the interim period) and the risk of impact on the North American market from U.S. tariff increases
• Prolonged distribution inventory adjustment in the Japanese market (Japan sales volume down 15.8% year-on-year in the interim period)
• Risk of soaring petroleum product prices and economic downside due to worsening conditions in the Middle East, as well as sluggish global consumer sentiment
• Foreign exchange risk (direct downward pressure on net sales and profit in the event of a shift toward yen appreciation)
• Downward pressure on operating profit margin due to increased selling, general and administrative expenses (¥3,026 million in the interim period, up ¥351 million year-on-year)
• Decline in equity ratio (from 85.1% to 82.3%) due to acquisition of treasury shares and changes in financial flexibility
• The full-year earnings forecast (operating profit of ¥8,370 million) is planned to fall below the FY2025 (ended March 2025) actual result (¥8,899 million), premised on a recovery in profit in the second half