GEO Holdings Corp. reported a steep decline in profits for the fiscal year ended March 2025, with net income falling 58.4% to ¥4.54 billion ($31.5 million) as the Japanese entertainment retailer grappled with sluggish game sales and rising costs.
Revenue dipped 1.4% to ¥427.7 billion while operating profit tumbled 33.1% to ¥11.25 billion, according to the Nagoya-based company’s statement Friday. GEO cited fading demand for new video games and higher expenses from store expansions and increased personnel costs.
The retailer recorded a ¥3.14 billion impairment charge on underperforming store assets, further pressuring its bottom line.
While new product sales plummeted 25.1% to ¥99.1 billion due to the absence of major game releases that boosted the previous year, GEO’s reuse businesses showed strength. Its luxury watch unit OKURA TOKYO maintained solid performance despite market softness, helping push total reuse product sales up 12.1% to ¥190.2 billion.
The company has been expanding its GEO Mobile stores with dedicated support staff to capture share in the growing reused smartphone market, contributing to a 12.4% increase in media reuse sales to ¥83.7 billion.
For fiscal 2026, GEO forecasts a 9.9% revenue increase to ¥470 billion but expects continued profit pressure with net income projected at ¥5.5 billion, down 21.2% from the already weakened 2025 results.
