Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending February 2027

Overview of Performance

In 2Q of the current fiscal year, total revenue increased slightly year-on-year, but profits declined due to higher raw material and energy costs and increased labor expenses, resulting in decreases in operating income, ordinary income, and net income. Revenue remained solid driven by same-store growth and contributions from new store openings, mainly in the retail segment. By segment, retail led performance while peripheral retail businesses and other businesses continued to perform steadily. The full-year plan discloses revenue of 478,000 million yen, operating income of 14,300 million yen, ordinary income of 15,200 million yen, and net income attributable to owners of parent of 9,800 million yen. Declining gross margin is cited as a factor pressuring profitability, and the company plans to improve profitability through enhanced digital utilization and strengthened store strategies.

Impact on Shareholders and Outlook

The annual dividend is planned to remain 66.00 yen. The number of treasury shares at the interim period end is stable, suppressing dilution. Overall, revenue is expected to increase, but declining gross margins and rising costs will constrain profit growth. The consolidated financial position through the interim period from the start of the fiscal year is solid; cash and cash equivalents could affect the period-end outlook, but the long-term capital policy direction will continue with steady execution of the medium-term plan.