IDOM Inc. has raised its sales forecast for the year to February 2027 and cut every profit line. The used-car dealer, listed on the Tokyo Stock Exchange Prime market under 7599, now expects consolidated sales of ¥655.0bn, up from ¥629.0bn, and operating profit of ¥18.5bn, down from ¥24.0bn (a 22.9% reduction), according to a forecast revision published with its first-half results.
Where the half-year missed
For the six months to August 31, sales of ¥318.1bn beat the April 13 forecast of ¥301.0bn. Operating profit of ¥8.771bn fell short of the ¥11.9bn forecast, and net profit of ¥5.201bn missed ¥7.05bn. Against the prior year, the half was still up: sales rose 17.7%, operating profit 8.6% and net profit 6.7%, and retail units at directly run domestic stores hit a first-half record of 88,043. The miss is against the company's own forecast, not against last year.
IDOM gave three reasons for the shortfall:
- Retail sales reached 88 thousand units against a plan of 90 thousand, because mid-career hires brought in for future store openings needed time to become productive. Gross profit per retail unit stayed at the planned level.
- A sharper-than-usual fall in used-car auction prices in the second quarter hurt wholesale margins. IDOM shifted vehicles from wholesale to retail disposal, but the clearance of slow-moving inventory in the first quarter compounded the damage, and gross profit per wholesale unit came in below assumption. The notice does not quantify the price decline.
- Selling, general and administrative expenses reached ¥43.2bn against a planned ¥41.0bn, on earlier hiring and higher pay for staff at stores opening in the second half, plus customer-relationship software and other digital spending.
A second half with higher costs
The full-year cut carries over the ¥3.1bn first-half operating shortfall and adds more growth spending. IDOM raised its large-store opening plan from 10 to 13 and now expects higher wholesale volumes, which lifts the sales forecast. It expects gross profit to exceed its original assumption, helped by the first-quarter inventory clearance and the new large stores, and it expects field productivity to improve as the staff hired early become productive. It also expects pre-opening costs, equipment spending, payroll and purchase-focused advertising to push expenses above plan, with ten large stores opening in the second half. The company says the extra gross profit alone cannot absorb that, and puts second-half operating profit at ¥9.7bn. The earnings summary shows the revised full-year operating profit 6.2% below the prior year.
| Measure | Previous forecast | Revised forecast |
|---|---|---|
| Sales | ¥629.0bn | ¥655.0bn |
| Operating profit | ¥24.0bn | ¥18.5bn |
| Ordinary profit | ¥22.4bn | ¥16.4bn |
| Net profit attributable to owners of parent | ¥14.2bn | ¥10.5bn |
| Net profit per share | ¥141.42 | ¥104.58 |
The dividend follows
IDOM says its dividend policy is linked to consolidated results, with a payout ratio of about 30% as a guide. It set the interim dividend at ¥15.54 per share, or ¥1.56bn in total, against ¥21.06 in its earlier forecast and ¥15.43 a year ago. The year-end forecast falls to ¥15.84 from ¥21.37, taking the full-year forecast to ¥31.38 from ¥42.43. The prior year's total was ¥35.60.
The company is also reviewing the earnings-linked policy itself, citing capital efficiency and more stable, predictable shareholder returns. It plans to publish the new policy with its next medium-term plan in April 2027. Its digital-gift shareholder benefit programme, introduced on January 23, 2026, will end after the distribution planned for November 2027 to holders on the register at the end of August 2027, because administration costs have grown with the number of shareholders.
The auction-price explanation is IDOM's own account of its wholesale margins, not an independent market measure.