Consolidated financial results (from April 1, 2025 to June 30, 2025)
In the first three months ended June 30, 2025 consolidated cumulative period, while Japanese economy maintained its
gradual recovery path, the impact of inflation continued to put pressure on household finances, resulting in many
consumers cutting down on their spending and increasing awareness towards “wise consumption”. Simultaneously,
through growing interest in SDGs, consciousness of “circular consumption,” which is to reuse and cherish things, further penetrated society.
Within the reuse industry, the reuse market continued steady expansion due to both environmental awareness and frugal mindsets. Particularly, as the demand of reuse for “still usable unwanted” goods in everyday life grew, accessibility of brick-and-mortar stores regained appreciation due to convenience, peace of mind, and adaptability to diverse items that can be purchased and sold amidst competition from flea market apps, and etc.
Under these circumstances, with our objective “to offer joy to your everyday life,” the Group has been working towards increasing possible alternatives and improving convenience for customers in order to achieve sustainable growth by expanding its e-commerce over the internet and new reuse store openings, centered around 2nd STREET, both in Japan and overseas.
In terms of trends in categories of reuse merchandises, due to a rising demand for reuse goods, which are more affordable than brand-new products, shopping at second-hand stores has become prevalent and also reuse sales are trending upward primarily with clothing and accessories correlated to the growth of reuse industry. In overseas regions, the Group broadened scope of activities by opening new stores in Singapore and Hong Kong, attracted support in respective regions through attempting to raise awareness in the global reuse industry, and continued expanding the number of stores and sales. OKURA TOKYO, the brand handles reuse luxury merchandise, experienced tough challenges due to slowing demand for tourists visiting Japan, which was strong in the previous fiscal year, and uncertainties over tariff policies by the Trump administration. As a result, overall sales of reuse merchandise (comprehensive) decreased and net sales amounted to 44,510 million yen (down 3.7% YoY).
In terms of trends in categories of reuse merchandise (media), sales of game-related reuse merchandise category decreased due to holding off on purchasing older model game consoles in anticipation of the launch of “Nintendo Switch 2” next-generation home video game console. As for the category of reuse communication device, such as smartphones, tablets, and other mobile devices, it showed steady growth through an increase in the number of opening up “GEO Mobile” stores, which stationed customer support staff to the storefront, at shopping malls and other facilities and strong needs for new household goods. From the above results, net sales of reuse merchandise (media) category increased by 2.3% YoY to 19,910 million yen.
In terms of trends in brand-new merchandise category, along with the launch of “Nintendo Switch 2” next-generation home video game console, net sales of game-related products, including game accessories, performed well, resulting in net sales to increase by 24.4% YoY to 26,446 million yen.
Based on above, the financial results of the Group for three months ended June 30, 2025, net sales were 104,460 million yen (up 4.3% YoY), operating profit was 3,993 million yen (down 8.5% YoY), ordinary profit was 4,249 million yen (down 22.5% YoY), and profit attributable to owners of parent was 2,438 million yen (down 31.3% YoY).
The numbers of the Group’s stores and facilities for the three months ended June 30, 2025 are as follows.
The figures in ( ) under the “Total” column indicate changes from the end of the previous fiscal year.
| Directly-managed stores | FC stores and distributors | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Newly opened | Closed | Newly opened | Closed | |||||||
| Total number of GEO group stores and facilities | 2,069 | 40 | 14 | 139 | 0 | 4 | 2,208 | 22 | ||
| GEO | 961 | 4 | 9 | 84 | 0 | 4 | 1,045 | (9) | ||
| ２nd STREET(Japan) | 839 | 16 | 2 | 55 | 0 | 0 | 894 | 14 | ||
| ２nd STREET(USA) | 48 | 2 | 1 | 0 | 0 | 0 | 48 | 1 | ||
| ２nd STREET(Taiwan) | 41 | 2 | 0 | 0 | 0 | 0 | 41 | 2 | ||
| ２nd STREET(Malaysia) | 26 | 3 | 0 | 0 | 0 | 0 | 26 | 3 | ||
| ２nd STREET(Thailand) | 4 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | ||
| ２nd STREET(Singapore) | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 1 | ||
| ２nd STREET(Hong Kong) | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 1 | ||
| OKURA TOKYO | 24 | 0 | 0 | 0 | 0 | 0 | 24 | 0 | ||
| LuckRack | 30 | 3 | 0 | 0 | 0 | 0 | 30 | 3 | ||
| Others | 94 | 8 | 2 | 0 | 0 | 0 | 94 | 6 | ||
* The numbers of stores are counted per each store brand.
* “GEO” includes stores that sell and purchase home game-related items, mobile phones and smartphones, and rent DVDs where they operate under the store names of “GEO” and “GEO mobile.”
* “2nd STREET” includes stores that sell and purchase clothing, home appliances, and other items where they operate under the names of “2nd STREET,” “Super 2nd STREET,” “2nd OUTDOOR,” “JUMBLE STORE,” etc.
[Assets]
Current assets as of June 30, 2025 were 180,812 million yen, which increased by 15,740 million yen from the end of the
previous fiscal year. This was mainly attributable to increases of 9,168 million yen in cash and deposits and 7,721 million
yen in merchandise. Non-current assets as of June 30, 2025 were 87,851 million yen, which increased by 116 million
yen from the end of the previous fiscal year. This was mainly attributable to increases of 229 million yen in buildings
and structures, net, 472 million yen in construction in progress included in “other, net” under property, plant and
equipment, and 402 million yen in leasehold and guarantee deposits, despite decreases of 336 million yen in right-of-
use assets, net, and 372 million yen in deferred tax assets included in “other” under investments and other assets.
As a result, total assets as of June 30, 2025 were 268,664 million yen, which increased by 15,856 million yen from the
end of the previous fiscal year.
[Liabilities]
Current liabilities as of June 30, 2025 were 43,309 million yen, which decreased by 3,293 million yen from the end of
the previous fiscal year. This was mainly attributable to decreases of 656 million yen in accounts payable - trade, 1,059
million yen in provision for bonuses, 1,557 million yen in accounts payable - other, and 895 million yen in income taxes
payable in “other” under current liabilities. Non-current liabilities as of June 30, 2025 were 133,207 million yen, which
increased by 17,472 million yen from the end of the previous fiscal year. This was mainly attributable to an increase of
17,825 million yen in long-term borrowings.
As a result, total liabilities as of June 30, 2025 were 176,517 million yen, which increased by 14,179 million yen from
the end of the previous fiscal year.
[Net assets]
Net assets as of June 30, 2025 were 92,146 million yen, which increased by 1,676 million yen from the end of the
previous fiscal year. This was mainly due to profit attributable to owners of parent of 2,438 million yen and dividends
from surplus of 675 million yen.
As a result, the equity-to-asset ratio stood at 34.2% (compared to 35.7% at the end of the previous fiscal year).
With respect to consolidated earnings forecast, there were no changes from the full year forecast presented on May 9, 2025.
