Pan Pacific International Holdings, the operator of the Don Quijote discount chain, closed the year to June 2026 with net sales of ¥2.45tn, up 8.8% from the prior year, and net profit attributable to owners of ¥110.1bn, up 21.6%. Comprehensive income, which adds currency-translation adjustments and other unrealized gains to net income, moved even more sharply: ¥127.34bn, a 41.0% increase after a 4.2% decline the year before.
A much softer guide for the year ahead
Management's own forecast for the year now under way is far less exuberant. PPIH expects net sales of ¥2.69tn (up 9.9%) and operating profit of ¥179bn (up 2.4%) for the year to June 2027, but ordinary profit is guided to fall 1.2% to ¥175.3bn, and net profit attributable to owners to rise just 0.4% to ¥110.5bn. That guidance already includes a newly consolidated subsidiary, so the deceleration is not simply an artifact of easier prior-year comparisons.
| Metric | Year to June 2026 (actual) | Year to June 2027 (forecast) | Forecast change |
|---|---|---|---|
| Net sales | ¥2.45tn | ¥2.69tn | +9.9% |
| Operating profit | ¥174.8bn | ¥179bn | +2.4% |
| Ordinary profit | ¥177.5bn | ¥175.3bn | -1.2% |
| Net profit (parent) | ¥110.1bn | ¥110.5bn | +0.4% |
Where the growth came from
Domestic operations, still the core of the business, grew sales 9.1% to ¥2.07tn and operating profit 4.9% to ¥165.8bn. The company says tax-free sales hit a record high, helped by an inbound strategy built around multiple source markets rather than one: more shoppers arrived from Southeast Asia and from Europe and the Americas, reducing reliance on any single nationality. Twenty-five new domestic stores opened during the year.
North America sales rose 7.1% to ¥277.9bn, with operating profit up 53.2% to ¥3.5bn, aided by new California openings and the consolidation of Mikuni Restaurant Group, though wildfire damage and the closure of unprofitable locations weighed on the total. Asia sales grew 8.7% to ¥99.1bn, and operating profit nearly tripled, up 186.0% to ¥5.5bn, on better merchandising and local sourcing. Group-wide store count reached 799 at year-end (676 domestic, 123 overseas), up from 779 a year earlier.
The company also opened the first outlet of a new grocery-heavy format called Robin Hood in April 2026, reaching five stores by the end of June, and says it wants 200 to 300 of them open by 2035.
The Olympic Group is now inside the numbers
On 1 July 2026, PPIH completed a share exchange that made Olympic Group, a discount and specialty retailer concentrated in the greater Tokyo area, a wholly owned subsidiary. Each Olympic share was swapped for 1.18 PPIH shares drawn from treasury stock. The FY2027 sales forecast reflects that addition, which makes the flatlining profit guide more notable: growth from a bigger store base is expected to translate into barely any additional bottom-line profit next year.
The dividend keeps climbing
Separately, PPIH's board raised the year-end dividend for the year to June 2026 to ¥6.50 per share, up from a prior forecast of ¥5.50, lifting the full annual payout to ¥9.50 per share (¥3.00 interim plus ¥6.50 year-end). The year-end portion alone totals ¥19.44bn in cash; the full-year dividend distribution across both payments comes to ¥28.41bn. That extends the company's run of annual dividend increases to 23 straight years, dating back to the year ended June 2004. For the year to June 2027, the board has already committed to a further increase, to ¥10.00 per share annually, split ¥3.50 interim and ¥6.50 year-end.
The dividend is rising faster than profit is now expected to. Whether that gap between a generous, progressive payout policy and a much slower earnings guide holds up will be the thing to watch when PPIH reports its first set of results under the enlarged, Olympic-inclusive group structure.