Sanrio Q 1 Revenue Rises 20.7% to $326 Million; Shares Plunge 18%
Sanrio shares plunged 18% Wednesday after the Hello Kitty owner released results for the first quarter of its current fiscal year. The stock had risen steadily for several months before the decline. Sanrio reported revenue of 52.04 billion yen, or $326 million, for the quarter ended in June, up 20.7% from a year earlier. Operating profit rose 11.1% to 22.44 billion yen. The company kept its full-year guidance unchanged. For the fiscal year ending in March of the following year, Sanrio expects revenue to rise 18.4% year over year to 229.8 billion yen and operating profit to increase 15% to 89.5 billion yen. Morningstar Research said Sanrio’s first-quarter results were broadly in line with institutional expectations and maintained its outlook for the company’s 2026 fiscal year and medium-term operating performance. Morningstar noted that Sanrio shares had risen about 55% cumulatively since the company delayed releasing its full-year results in June, and said the stock’s current valuation had entered a reasonable range. In Japan, rising popularity for Sanrio’s intellectual properties drove a 43.5% year-over-year increase in profit contribution. Continued launches of original merchandise and improved operations at existing stores supported product sales. The company also expanded the range of characters available for licensing, and each licensing partner’s profitability improved, supporting the licensing business. In the Americas, Sanrio said sales were showing signs of recovery while the company continued to address the impact of tariffs. Growth in toys and apparel, along with broad commercial use of Hello Kitty and related intellectual properties, supported regional performance. Sanrio is expanding its gaming business. It plans to launch a game for the Switch platform in October and a mobile game in 2027. Morningstar said the gaming segment is unlikely to generate a significant incremental profit contribution in the short term.
Sanrio reported revenue of 52.04 billion yen, or $326 million, for the quarter ended in June, up 20.7% from a year earlier. Operating profit rose 11.1% to 22.44 billion yen.
The company kept its full-year guidance unchanged. For the fiscal year ending in March of the following year, Sanrio expects revenue to rise 18.4% year over year to 229.8 billion yen and operating profit to increase 15% to 89.5 billion yen.
Morningstar Research said Sanrio’s first-quarter results were broadly in line with institutional expectations and maintained its outlook for the company’s 2026 fiscal year and medium-term operating performance. Morningstar noted that Sanrio shares had risen about 55% cumulatively since the company delayed releasing its full-year results in June, and said the stock’s current valuation had entered a reasonable range.
In Japan, rising popularity for Sanrio’s intellectual properties drove a 43.5% year-over-year increase in profit contribution. Continued launches of original merchandise and improved operations at existing stores supported product sales. The company also expanded the range of characters available for licensing, and each licensing partner’s profitability improved, supporting the licensing business.
In the Americas, Sanrio said sales were showing signs of recovery while the company continued to address the impact of tariffs. Growth in toys and apparel, along with broad commercial use of Hello Kitty and related intellectual properties, supported regional performance.
Sanrio is expanding its gaming business. It plans to launch a game for the Switch platform in October and a mobile game in 2027. Morningstar said the gaming segment is unlikely to generate a significant incremental profit contribution in the short term.