⚠ A Revaluation Gain Is Not ProfitLow threat

ITOCHU (8001) — threat to the moat

Taking DESCENTE private produced a one-off gain larger than its annual profit.

The ¥50.0 billion revaluation gain on consolidating DESCENTE1 was a large part of the Textile division's ¥73.8 billion profit in the year to March 20252. In the latest year the division earned ¥43.3 billion3.

Textile division net profit (¥ bn, years to March)27.0202473.8 (incl. 50.0 gain)202543.32026ITOCHU results and FIR 2025
The revaluation year stands out.

Gains of this kind recur across ITOCHU's take-privates, because buying control of a company already held as an associate requires the old stake to be marked to the new price.

The plan for the Textile division in the current year is ¥52.0 billion4, and the first quarter earned ¥14.4 billion5, on pace without any revaluation.

The measure is the Textile division's profit excluding such gains. At about ¥41.3 billion of core profit in the latest year6, that is the business.

References
  1. ReportedThe ¥50.0 billion revaluation gain on consolidating DESCENTE was a large part of the Textile division's ¥73.8 billion profit in the year to March 2025.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
  2. ReportedThe ¥50.0 billion revaluation gain on consolidating DESCENTE was a large part of the Textile division's ¥73.8 billion profit in the year to March 2025.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedIn the latest year the division earned ¥43.3 billion.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. ReportedThe plan for the Textile division in the current year is ¥52.0 billion, and the first quarter earned ¥14.4 billion, on pace without any revaluation.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  5. ReportedThe plan for the Textile division in the current year is ¥52.0 billion, and the first quarter earned ¥14.4 billion, on pace without any revaluation.
    ITOCHU Corporation, Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenues, trading income, equity earnings, net profit, segment results, the balance sheet and the ¥300 billion buyback. — April-June 2026 · publ. 6 August 2026 · source ↗
  6. ReportedAt about ¥41.3 billion of core profit in the latest year, that is the business.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
Sources
Generated September 24, 2026