Notice of Revision to Consolidated Earnings Forecasts for the Second Quarter (Interim) and Full Year for the Fiscal Year Ending March 2027

Summary of Earnings Forecast Revisions

Interim net sales are revised to 8,596 million yen, operating income to 351 million yen, ordinary income to 307 million yen, and net income attributable to owners of parent to 298 million yen. For the full year, net sales are revised to 17,100 million yen, operating income to 520 million yen, ordinary income to 420 million yen, and net income attributable to owners of parent to 270 million yen. The main drivers are faster-than-expected progress on closing unprofitable stores and optimizing operations, reforms to store operations, efficiency gains through DX utilization, strengthened urban-area store openings, and cross-group personnel optimization. With the effect of special gains, some full-year forecast items were revised upward, while net sales are expected to decrease due to a decline in customer traffic.

Outlook and Assumptions

For the second half, net sales are expected to decline at a similar rate to the previous forecast; although uncertainties such as rising raw material and labor costs remain, continued profit-improvement measures are reflected in the upward revision of operating income. Cost reductions from the transition to a company with an audit and supervisory committee also contributed. Among special gains, compensation of 139 million yen related to store relocations was recorded. The company will continue to promote redesign of the earnings-structure model through the "Future Plan Next" initiative.