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Investing.com - Mercari (TYO:4385) reported mixed results for the June quarter, with consolidated core operating profit increasing 39% year-over-year, exceeding both market expectations and company guidance despite slowing growth in its core Japan e-commerce business.
The company’s Japan EC gross merchandise value (GMV) grew just 2% in the quarter, confirming market concerns about decelerating growth in its primary market. Despite the slowdown, Mercari maintained high margins in Japan with an operating profit margin of 39%, though this represented a 400 basis point decline as the company continued growth investments.
Mercari’s profit growth was driven by reduced losses in its financial segment and its US business moving into profitability. The US operation maintained a positive adjusted operating profit margin, with no announcements regarding potential business divestitures in that market.
For the fiscal year ending June 2026, Mercari issued guidance for operating profit of ¥28-32 billion, representing approximately 9% growth at the median point. This outlook aligns with market expectations and factors in continued modest Japan EC GMV growth of 3-5%.
The company’s profit plan balances increased earnings from Japan EC operations against reduced losses in the financial segment, presenting what analysts consider a realistic outlook given the confirmed slowdown in its core business growth.
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