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ABC-Mart's South Korea rebound and tourist spending lift first-quarter profit

South Korea sales jumped 13.1% as shoppers there recovered from last year's political turmoil, helping push ABC-Mart's operating profit up 8.3% to ¥20.3bn while the full-year forecast stayed unchanged.

Jul 8, 20262 min read
Shelves of stacked shoe boxes in a retail store aisle with a currency exchange rate display visible in the background.

ABC-Mart's operating profit rose 8.3% to ¥20.3bn in the quarter to May 31, 2026, as a recovering South Korea business and steady inbound tourist spending offset a domestic market where shoppers are buying fewer items per visit. Consolidated net sales climbed 8.0% to ¥105.5bn, and net income attributable to shareholders rose 10.4% to ¥14.3bn.

In Japan, sales rose 7.2% to ¥78.0bn and segment profit rose 7.2% to ¥18.9bn. All-store sales were up 7.3% and existing-store sales up 6.5%, with national-brand sneakers, leather boots and sports apparel selling well even as inflation cut the number of items each customer bought. Weaker-yen-driven inbound spending added to the total.

Overseas, sales rose 10.8% to ¥28.9bn and segment profit jumped 29.2% to ¥1.4bn. The gain was led by South Korea, where sales rose 13.1% to ¥17.9bn and segment operating income climbed 25.9% to ¥769mn, as consumer spending recovered from a slump tied to the country's martial law declaration in December of the year before last, and running-focused "GRANDSTAGE" store formats drew shoppers, including tourists from China and Southeast Asia. Taiwan sales grew 14.5% to ¥3.8bn on steady shopping-mall traffic. In the United States, where ABC-Mart makes and sells leather shoes, sales edged up 0.9% to ¥6.8bn even as inflation and US tariff policy left the shoe market "uncertain," the company said.

Segment sales, quarter to May 2026
Year-on-year change versus the same quarter a year earlier.
SegmentSalesYoY change
Japan (domestic)¥78.0bn+7.2%
Overseas (total)¥28.9bn+10.8%
South Korea¥17.9bn+13.1%
Taiwan¥3.8bn+14.5%
United States¥6.8bn+0.9%

Management left its full-year forecast untouched: net sales of ¥400.8bn (up 5.9%), operating profit of ¥65.6bn (up 3.7%) and net income of ¥46.4bn (up 0.1%), matching the guidance it issued in April.

The chain ended the quarter with 1,115 stores in Japan, after ten openings and two closures, and 1,508 stores group-wide. Its digital sales ratio, covering online orders and in-store pickup, stood at 10.6% of ABC-brand sales, little changed from a year earlier.