Sanyo Shokai cuts year-end dividend forecast to ¥31 as H1 net loss widens

The apparel company said it had raised its dividend policy for the remaining period of its medium-term management plan (fiscal years ending February 2026 through February 2028) to a 5% dividend-on-equity (DOE) ratio from 4%, as announced on June 30, 2026. However, after buying back 2.7 million of its own shares on Aug. 31, 2026, and recalculating with first-half results, it now expects shareholders' equity at the end of the fiscal year to decline, prompting the revision.

The company carried out a 3-for-1 stock split effective Sept. 1, 2026. The interim dividend of ¥76.00 is stated on a pre-split basis. Without adjusting for the split, the year-end dividend forecast would be ¥93 and the annual total ¥169, compared with ¥139.00 for the previous fiscal year.

For the six months from March 1 to Aug. 31, 2026, net sales fell 4.0% and the operating loss widened to ¥499 million from ¥213 million a year earlier. Sales to existing customers rose year on year, but sales to walk-in customers stayed weak and store numbers declined, mainly in department stores. The gross margin recovered to roughly the prior-year level. The full-year forecast was left unchanged.

Next steps: The interim dividend is scheduled to be paid from Nov. 9, 2026, and the semi-annual securities report is due to be filed on Oct. 15, 2026.