On March 25, 2026, the Hello Kitty mascot will be seen at UFO Catcher in Osaka. (Photo: Jakub Porzycki/NurPhoto via Getty Images)
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Hello Kitty owner stock sanrio The company plunged 18% in Tokyo on Wednesday following its first-quarter results after its stock price soared over the past few months.
Sanrio reported a 20.7% year-over-year increase in sales to 52.04 billion yen ($326 million) and an 11.1% increase in operating profit to 22.44 billion yen for the quarter ending June.
The company left its full-year forecast unchanged, with sales for the fiscal year ending in March expected to increase by 18.4% to 229.8 billion yen, and operating income to increase by 15% to 89.5 billion yen.
Research firm Morningstar said the quarterly results were largely in line with the company’s expectations, leaving its fiscal year 2026 and medium-term outlook unchanged. The company noted that Sanrio shares have risen about 55% since the company’s full-year results were delayed in June, and said it had reached its fair value.
Sanrio said that in Japan, due to the growing popularity of its characters, the rollout of original products and strong same-store performance benefited product sales, resulting in a 43.5% year-on-year increase in contribution margin. The company’s licensing business also saw improved profitability per licensee due to the use of a wider range of characters.
In mainland China, both new and existing stores performed well.
Sanrio said it continues to overcome the impact of tariffs in the Americas and sales are showing signs of recovery. In addition to growth in the toy and apparel categories, the company’s performance was supported by the wide use of characters such as Hello Kitty and Friends.
As Sanrio expands into gaming, it is expected to release Nintendo Switch games in October, followed by mobile games in 2027, but Morningstar does not expect this division to be a meaningful profit driver in the near term.
