Japanese secondhand goods retailer Kaitori Okoku reported mixed results for the second quarter of fiscal year 2025, with sales growth offset by declining profits. The company maintained its cautious full-year outlook, reflecting ongoing challenges and expansion costs.
For the quarter ended August, Kaitori Oukoku posted sales of 3.501 billion yen ($23.3 million), an 8.8% increase year-on-year. However, operating profit fell 14% to 193 million yen ($1.3 million), while net profit remained nearly flat at 151 million yen ($1 million).
The company’s expanded business base through new store openings and improved existing sales floors drove growth in fashion, hobbies, and tools. This helped compensate for a significant drop in trading card sales due to market conditions. Despite the sales mix change improving gross profit margins, increased store opening costs and labor expenses pressured profits.
Looking ahead, Kaitori Okoku maintains its revised full-year forecast, projecting sales of 7.701 billion yen ($51.3 million), up 14.3% year-on-year, but expects operating profit to decline 18.5% to 403 million yen ($2.7 million). The company cites ongoing costs related to its expansion strategy, including the implementation of a new point-of-sale system across its growing store network.
With 45.5% of its annual sales target and 47.9% of its operating profit goal achieved by midyear, Kaitori Okoku faces a challenging second half as it balances growth initiatives with profitability concerns in a competitive market.
