Japanese collectibles retailer Tay Two Co. cut its annual profit forecast by nearly half, highlighting weakening demand in the trading card market that has cooled from its pandemic-era boom.
The company now expects operating profit of 780 million yen ($5.3 million) for the fiscal year ending February 2024, down 48% from its previous projection of 1.5 billion yen. Revenue is forecast at 36.8 billion yen, slightly below earlier estimates.
Tay Two cited declining prices in the secondary trading card market, which has compressed profit margins. Rising costs from new store openings and overall expense inflation have further squeezed earnings.
While sales of new trading cards and hobby merchandise remain solid, the company suspended its net income guidance, saying it needs to reassess accounting estimates before providing updated projections.
The reduced outlook marks a sharp reversal from recent years when trading card retailers benefited from surging collector demand. Tay Two’s operating profit is now set to drop 41% from the previous year, even as revenue grows 4.5%.
