Financial Summary for the Second Quarter (Interim) of Fiscal Year Ending February 2027 [Japanese GAAP] (Consolidated)

Overview of Results

ARCS Company Limited announced its consolidated results for the second quarter (interim) of the fiscal year ending February 2027. Net sales were 318,685 million yen, a 1.6% increase year-over-year, demonstrating steady performance. However, profitability gains were limited due to higher raw material and supply costs. Operating income was 7,766 million yen (-2.7%), ordinary income was 8,517 million yen (-2.7%), and interim net income attributable to owners of parent was 5,375 million yen (-5.9%). There were no significant revisions to full-year performance forecasts or dividend forecasts, and the dividend outlook remains consistent with the 2026 actuals. Total assets amounted to 304,246 million yen, and the equity ratio edged up to 65.4%.

Outlook and Impact for Investors

The Company continues cost control initiatives through digital transformation (DX) promotion and operational excellence, and plans store refurbishments and new openings. While the Company expects to achieve the initial policy for the fiscal year, attention is required for improvements in profit margins amid continued increases in raw material and labor costs. An earnings briefing will be held and materials for institutional investors will be disclosed; progress on store expansion and DX initiatives is expected to be key to future performance.