DCM started the year ending February 2027 with a stronger first quarter, but not with a higher target. The home-improvement retailer said operating revenue rose 9.8% to ¥151.9bn in the three months to May 31, operating profit increased 17.4% to ¥11.4bn, ordinary profit rose 19.4% to ¥10.9bn and net profit attributable to owners climbed 11.5% to ¥6.6bn. Even so, management kept its full-year outlook unchanged at ¥577.3bn of operating revenue, ¥31.2bn of operating profit, ¥29.4bn of ordinary profit and ¥17.4bn of net profit. The annual dividend forecast was also left unchanged at ¥48 a share.
| Metric | First quarter | Change | Current full-year outlook |
|---|---|---|---|
| Operating revenue | ¥151.9bn | +9.8% | ¥577.3bn, unchanged |
| Operating profit | ¥11.4bn | +17.4% | ¥31.2bn, unchanged |
| Ordinary profit | ¥10.9bn | +19.4% | ¥29.4bn, unchanged |
| Net profit attributable to owners | ¥6.6bn | +11.5% | ¥17.4bn, unchanged |
| Annual dividend forecast per share | Forecast unchanged | No revision disclosed | ¥48.00 |
The company attributed the quarter's sales lift to warmer weather, temporary stock-up buying linked to Middle East tensions, and the inclusion of Home Tech results from January through March 2026. DCM said air conditioners, fans and summer workwear sold well, while paper products, plastic wrap and garbage bags also benefited from bulk buying. Same-store sales rose 2.4% in the quarter, with customer traffic down 0.7% but average spend up 3.1%.
There was also a useful margin footnote, because reported and underlying trends were not quite the same. DCM's supplemental material said reported gross margin slipped 0.3 percentage points year on year and selling, general and administrative expenses rose 7.1%, as the group pushed efficiency measures while responding to higher wages. Excluding Encho, however, the home-center business gross margin improved 0.2 points to 37.1%, and SG&A was 99.8% of the prior-year level.
By category, home improvement sales rose 12.6% to ¥29.8bn, housekeeping sales increased 7.1% to ¥30.5bn and home electronics grew 10.4% to ¥11.1bn. The Exprice e-commerce business added 5.0% sales growth to ¥15.9bn, and the group ended the quarter with 918 stores after one opening and one closure.
For investors, the near-term read-through is simple. DCM's supplemental figures showed the first quarter ahead of the company's own plan on sales and profit, but management did not turn that into a higher annual forecast. The current-year assumptions still call for only 0.4% existing-store sales growth, 10 new stores and two closures.