PAL GROUP Holdings CO., LTD. Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending February 2027

Performance Overview

In the second quarter of the fiscal year ending February 2027, revenue was 121,931 hundred million yen (YoY +4.1%), supported by strong performance in the apparel business. The general merchandise business recorded higher revenue but, due to rising costs of goods sold and increased selling, general and administrative expenses, operating profit showed only marginal change year-on-year. By segment, apparel made a larger profit contribution, boosting overall profit margins. Gross profit margin improved due to expansion of the customer base using e-commerce and social media and tighter inventory control. The outlook based on supplemental financial materials remains unchanged.

Outlook and Key Issues

Notes include the status of treasury stock at the interim period end, but the full-year earnings outlook remains unchanged from previously announced guidance. Continued store expansion and e-commerce strategies, expansion of overseas operations (Hong Kong, Taiwan), and continued cross-sell effects from consolidation of e-commerce warehouses are expected. In the second half, plans include strengthening product development capabilities and personnel structure to launch new products. Although cash decreased, measures such as handling of treasury stock were used to address this, and the equity ratio is on an upward trend.