Nagaileben is leaning harder on shareholder returns, not by promising heroic growth, but by putting a strong balance sheet to work. The company raised its planned year-end dividend for the year ending August 2026 to ¥70 a share from ¥60 and, on the same day, approved a fresh share buyback of up to 600,000 shares, or 2.00 per cent of shares outstanding excluding treasury stock, with spending capped at ¥1bn. The repurchase window runs from June 30 to October 31 through market purchases on the Tokyo Stock Exchange.
| Action | Detail | Timing |
|---|---|---|
| Year-end dividend forecast | ¥70 a share, up from ¥60 | For the year ending August 2026, subject to November 2026 AGM approval |
| Payout policy | Stable dividend with payout ratio target of about 50% | Company stated policy |
| New buyback | Up to 600,000 shares, capped at ¥1bn | June 30 to October 31, 2026 |
| Buyback already completed this year | 528,000 shares for ¥999.991mn | Bought under a November 12, 2025 board resolution |
| Nine-month net profit | ¥2.05bn, down 1.0% | September 1, 2025 to May 31, 2026 |
That is a firmer capital-allocation stance than the quarter alone would suggest. In the first nine months, sales slipped 0.7 per cent to ¥13.27bn, operating profit fell 3.5 per cent to ¥2.81bn and net profit edged down 1.0 per cent to ¥2.05bn. Management still left full-year guidance unchanged at ¥18.0bn of revenue, ¥4.03bn of operating profit and ¥2.9bn of net profit.
Inside the quarter, core-market sales rose only 0.4 per cent, with some renewal projects delayed, while patient-wear demand weakened and dragged that category down 10.5 per cent. Overseas sales were a bright spot, up 24.1 per cent, and gross margin improved 0.4 point to 40.0 per cent as price revisions and production and logistics cost controls offset part of the cost pressure. Selling and administrative expenses, however, rose 5.1 per cent, led by higher personnel costs.
The room for higher payouts is plain enough on the balance sheet. As of May 31, Nagaileben held ¥21.93bn of cash and deposits and reported an equity ratio of 92.3 per cent. Net assets still fell to ¥39.42bn, mainly because it paid out ¥3.05bn in dividends and spent ¥999.991mn buying back 528,000 shares earlier in the year under a November 2025 board decision.
On dividends, the company reiterated a basic policy of stable payouts with a target payout ratio of about 50 per cent. It also said it intends to treat the new ¥70 level as the base it aims to maintain and continue, while enhancing returns in line with sustainable gains in corporate value. Two caveats matter. The ¥70 payment is still a forecast that must be put to shareholders at the annual general meeting scheduled for November 2026, and last year's ¥100 total included a ¥40 commemorative dividend, so the cleaner comparison for recurring payout is the move from ¥60 to ¥70.