United Arrows Ltd. · TSE:7606
United Arrows — Q1 FY2027/3 Earnings Presentation
40 slides from United Arrows's earnings presentation, Aug 7, 2026
Slide 1: For the Three Months of Fiscal Year Ending March 31, 2027
For the Three Months of Fiscal Year Ending March 31, 2027 2026.08.07 UNITED ARROWS LTD.
Slide 2: Agenda
P03– |1 Overview of FY2027/3 1Q Business Results P19– | 2 Progress in Sustainability Initiatives P24– | 3 Review of FY2027/3 1Q From Matsuzaki, President and CEO P33– | 4 Reference Materials
Slide 3: Cautionary Statement
Cautionary Statement Earnings forecasts and descriptions other than objective facts contained in this document are based on decisions made by UNITED ARROWS LTD. in light of information obtainable as of the date of this report and, therefore, include risks and uncertainties. Actual earnings may diffe
Slide 4: Overview of FY2027/3 1Q Business Results
Overview of FY2027/3 1Q Business Results
Slide 5: Financial Highlights
Overview of FY2027/3 1Q Business Results Financial Highlights Consolidated: Net Sales Continued to Grow; All Profit Lines Posted Double-Digit Growth • Successfully offset the revenue impact of COEN CO. LTD. divestiture, achieving net sales of 104.2% and gross profit of 103.0% versus the prior year.
Slide 6: Consolidated Sales and Gross Margin
Overview of FY2027/3 1Q Business Results Consolidated Sales Consolidated Gross Margin YoY ¥39.7 YoY pt difference billion 104.2% 54.6% -0.6pt (Millions of yen) 39,789 38,190 35,495 54.6% 32,155 55.0% 29,664 54.5% 54.7% 55.3% FY23/3 3M FY24/3 3M FY25/3 3M FY26/3 3M FY27/3 3M FY23/3 3M FY24/3 3M FY25/
Slide 7: Consolidated Operating Income and Net Income
Overview of FY2027/3 1Q Business Results Consolidated Operating Income Net Income Attributable to Owners of Parent YoY YoY 5,000 ¥3.2 billion 127.5 % ¥2.1 billion 144.8% 5000 (Millions of yen) (Millions of yen) 3,231 2,768 2,502 2,534 1,853 2,119 1,798 1,763 1,463 1,323 0 0 FY23/3 3M FY24/3 3M FY25/
Slide 8: Consolidated P/L
Overview of FY2027/3 1Q Business Results Consolidated P/L • Absorbed the revenue impact of COEN CO. LTD. divestiture, delivering year-on-year sales growth. Despite a 0.6ppt decline in gross profit margin, all profit lines below operating profit achieved double-digit growth. Net sales grew year on ye
Slide 9: Consolidated Gross Margin
Overview of FY2027/3 1Q Business Results Consolidated Gross Margin • Gross profit margin declined due to aged inventory sell-through at outlet stores and adverse weather conditions in June. • Taiwan improved through steady growth, while Shanghai declined due to a new franchise store opening. FY27/3
Slide 10: Consolidated SGA Expenses
Overview of FY2027/3 1Q Business Results Consolidated SGA Expenses Improved earnings structure and lower SG&A ratio following the divestiture of COEN CO. LTD. (Millions of yen) FY26/3 FY27/3 Change/pt YoY 3M 3M difference Total SGA expenses 18,567 18,502 (65) 99.6% vs. sales 48.6% 46.5% -2.1pt - Adv
Slide 11: Consolidated B/S
Overview of FY2027/3 1Q Business Results Consolidated B/S • Inventory growth was contained following COEN CO. LTD. divestiture. • On a non-consolidated basis, inventory growth remained below sales growth. (Millions of yen) As of Mar. 31, As of Jun. 30, vs. previous term-end 2026 2027 Change Total As
Slide 12: Consolidated C/F
Overview of FY2027/3 1Q Business Results Consolidated C/F (Millions of yen) FY26/3 FY27/3 Major breakdown of the results for the term 3M 3M Cash flows from operating activities 986 2,024 (sub-total) Profit before income taxes 3,246 Decrease in provision for bonuses (1,793) Cash flows from operating
Slide 13: Non-consolidated Sales, Gross Margin and Existing Stores
Overview of FY2027/3 1Q Business Results Non-consolidated Sales Non-consolidated Gross Margin Non-consolidated Existing Stores YoY YoY YoY pt difference ¥39.3 billion 109.6% 54.3% -0.8pt Sales 105.9% Number of (Millions of yen) purchasing customers 100.3% 39,334 35,901 27,089 29,894 33,117 55.0% 54.
Slide 14: Non-consolidated Sales by Channel
Overview of FY2027/3 1Q Business Results Non-consolidated Sales by Channel Optimized inventory allocation through UA 3.0 drove year-on-year growth in both retail and e-commerce sales. (Millions of yen) Existing stores YoY Avg. spend FY26/3 FY27/3 Change/pt Number of YoY Sales per 3M 3M difference cu
Slide 15: Non-consolidated Sales by Business
Overview of FY2027/3 1Q Business Results Non-consolidated Sales by Business Strong demand for value-added products drove sales growth, particularly in the trend-conscious market. (Millions of yen) FY26/3 FY27/3 Change YoY 3M 3M Total business unit sales 30,173 32,665 2,492 108.3% Trend-conscious Mar
Slide 16: Non-Consolidated Existing Store Performance
Overview of FY2027/3 1Q Business Results Non-Consolidated Existing Store Performance • Retail sales faced headwinds in June due to typhoons and unseasonably cool weather; however, optimized inventory allocation enabled e- commerce to capture a portion of demand. • Average spending per customer conti
Slide 17: Group Company Results
Overview of FY2027/3 1Q Business Results Group Company Results (Millions of yen) 590 UNITED ARROWS TAIWAN LTD. Feb. – Apr. Increase in Revenue and Profit 396 396 325 • Net sales reached ¥590 million, up 48.8% YoY 283 • Core brands UA, BY, and GLR delivered strong performance • Revised pricing strate
Slide 18: Opening and Closing of Stores
Overview of FY2027/3 1Q Business Results Opening and Closing of Stores • No store closures; opened six domestic stores and one overseas store • Total store count: 280 at the end of 1Q 3M results Full-year forecast No. of stores at No. of stores at No. of stores at the previous Opened Closed Opened C
Slide 19: FY27/3 Dividend Forecast: Special Commemorative Dividend
Overview of FY2027/3 1Q Business Results FY27/3 Dividend Forecast: Special Commemorative Dividend • ¥20 per share special dividend to commemorate the transition to a holding company structure. • FY27/3 year-end dividend: ¥80 per share (¥60 ordinary + ¥20 special). • Annual dividend increased to ¥112
Slide 20: Progress in Sustainability Initiatives
Progress in Sustainability Initiatives
Slide 21: Sustainability Initiatives of UNITED ARROWS
Progress in Sustainability Initiatives Sustainability Initiatives of UNITED ARROWS Circular fashion Toward a carbon-neutral world Work and live in a healthy way Positive impact on the earth with To preserve our beautiful earth For every stakeholder of UNITED fashion, UNITED ARROWS LTD. UNITED ARROWS
Slide 22: SARROWS Indicator Numerical Results
Progress in Sustainability Initiatives SARROWS Indicator Numerical Results Circulating fashion Toward a carbon-neutral world Work and live healthily Waste rate of textile products CO2 emission reduction rate (Scope 1 and 2) Acquisition rate of Code of Conduct Agreements 2024 2025 2030 TARGET 2024 20
Slide 23: To increase trust in the corporate brand and sustainable profitability
Progress in Sustainability Initiatives To increase trust in the corporate brand and sustainable profitability We have long regarded sustainability as an initiative to create maximum corporate value from limited resources. Procuring the right amount and selling without waste not only reduces waste bu
Slide 24: Linkage Between SARROWS Metrics and Shareholder Value Creation
Progress in Sustainability Initiatives Linkage Between SARROWS Metrics and Shareholder Value Creation Employee satisfaction ↑ Ratio of items sold at Customer satisfaction ↑ regular prices↑ Gross margin ↑ ROE eNPS -40.0 Survey positive response rate 80% Human resource risk ↓ In the supply chain PBR A
Slide 25: Review of FY2027/3 1Q From Matsuzaki, President and CEO
Review of FY2027/3 1Q From Matsuzaki, President and CEO
Slide 26: Overview of Profitability Improvement by Introducing UA3.0
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 Overview of Profitability Improvement by Introducing UA3.0 Improve gross margin and SG&A ratio through procurement cost reduction initiatives and higher full-price sales and sell- through rates, driving
Slide 27: Controlling the purchase cost ratio
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 Profitability Improvement with UA 3.0: Controlling the purchase cost ratio • Improve cost structure visibility to reduce cost ratios without compromising quality. • Reflected in Spring/Summer 2027 produc
Slide 28: Higher Full-Price Sales & Sell-Through
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 Profitability Improvement with UA 3.0: Higher Full-Price Sales & Sell-Through • Introduced target inventory levels by store and product • Drove growth in both e-commerce and store sales while reducing in
Slide 29: UA 2.0 vs. UA 3.0: Changes in Inventory Replenishment Logic
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 UA 2.0 vs. UA 3.0: Changes in Inventory Replenishment Logic Optimized inventory allocation, increasing sales opportunities and reducing return costs Sales Event Final Day Sales Event Final Day Next Busin
Slide 30: Higher Full-Price Sales & Sell-Through Initiatives
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 Profitability Improvement with UA 3.0: Higher Full-Price Sales & Sell-Through • Enhanced target inventory management through optimized initial allocation patterns and sales-driven replenishment. • Broade
Slide 31: UA 3.0 Roadmap to Enhance Profitability
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 UA 3.0 Roadmap to Enhance Profitability Early UA 3.0 benefits have been confirmed, with broader deployment expected to further improve profitability. Near Term FY2027/2H - 2027 Spring & Summer Mid-Term T
Slide 32: Overseas Expansion: New Store Openings in Summer 2026
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 Overseas Expansion: New Store Openings in Summer 2026 UNITED ARROWS SHANGHAI LTD. Mainland China Expansion: Third Store Opened in Hangzhou (April 2026) • Expanded the brand lineup to include DRAWER, alon
Slide 33: Progress of OMO Initiatives: Number of UA Club Members
Progress report on the Medium-Term Management Plan: Results of major initiatives in 1Q FY 2027/3 Progress of OMO Initiatives: Number of UA Club Members The number of active members has continuously increased due to the promotion of OMO. The membership retention rate and the ratio of F2 or higher mem
Slide 34: Reference Materials
Reference Materials
Slide 35: Consolidated Business Plan
Reference Materials Consolidated Business Plan Sales growth is expected to offset the COEN divestment impact, with stable full-year margins and higher profits driven by SG&A control. (Millions of yen) Sales ¥166.1 billion (YoY 101.0%) FY26/3 Results FY27/3Change/pt Forecasts difference YoY Gross mar
Slide 36: Gross Margin Plan
Reference Materials Gross Margin Plan • On a consolidated basis, full-year performance is expected to be in line with the prior year. • On a non-consolidated basis, results are expected to be below the prior year in the first half due to the clearance of prior-year inventory, but to exceed the prior
Slide 37: Non-consolidated Sales Plan
Reference Materials Non-consolidated Sales Plan • Non-consolidated total sales are expected to increase year on year by 107.8% in the first half, 104.6% in the second half, and 106.0% for the full year. • Existing-store sales are expected to grow year on year in both retail and e-commerce channels.
Slide 38: UNITED ARROWS LTD. FY2027/3 Store Opening and Closing
Reference Materials UNITED ARROWS LTD. FY2027/3 Store Opening and Closing (number of 3M results Full-year forecast stores) No. of stores at No. of stores at No. of stores at the previous Opened Closed Opened Closed the period end 3M-end period end (Forecast) UNITED ARROWS LTD. Total 258 6 0 264 14 1
Slide 39: Holistic view of Medium-Term Management Plan 2026-2028
Holistic view of Medium-Term Management Plan 2026-2028 Become a high-sensitivity, high value-added Group with global scope and Japanese pride Medium- term strategy Become the #1 brand for Spread highly sensitive Create new contact points Ⅰ highly sensitive Ⅱ customers around the Ⅲ with highly sensit
Slide 40: Targets of Long-Term Vision 2032 and Medium-Term Plan
Targets of Long-Term Vision 2032 and Medium-Term Management Plan 2026-2028 In light of the current business environment and future M&A possibilities, we are revising the long-term target for sales upward to ¥300 billion. As a milestone for the long term, in the new medium-term management plan, we wi