Notice of Recording an Extraordinary Loss, Revision of Earnings Forecast and Results of the Medium-Term Management Plan

Extraordinary Loss and Revision of Earnings Forecast

The document states that an impairment loss of 980 million yen is planned to be recorded in the fiscal year ending August 2026, and the consolidated full-year earnings forecast for the fiscal year ending August 2026 has been revised. Net sales are expected to be 61,099 million yen, operating income 290 million yen, ordinary income 324 million yen, net income attributable to owners of parent -860 million yen, and earnings per share -70.18 yen. Reasons for the revision include steady general sporting goods sales but delayed recovery in demand for camping goods and seasonality, decreased dividend income, increased interest expenses, and the impact of the extraordinary loss.

Results of the Medium-Term Management Plan and Future Policy

The target ordinary income of 500 million yen for the final year of the medium-term management plan is expected to be unmet. Going forward, the company plans to concentrate resources on high-margin products and categories, optimize selling prices, promote digitalization and operational efficiency, commercialize reuse, EC-exclusive items, and new products, improve warehouse utilization rates promptly, and continue reviewing headquarters-related costs. The company also anticipates changes in external conditions such as foreign exchange effects, and explains that it will prioritize balancing growth investments with profitability and stability from the next fiscal year onward.