Supplementary Explanation Materials for the Financial Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending May 2026

Overview of Performance

For the second quarter of the fiscal year ending May 2026, consolidated results recorded net sales of 47,746 million yen (12.8% Year-over-Year increase), operating income of 6,895 million yen (21.6% YoY increase), ordinary income of 7,753 million yen (37.2% YoY increase), and net income attributable to owners of parent of 6,990 million yen (36.4% YoY increase). The gross profit margin rose by 0.3 percentage points from the prior year period to 65.0%. Selling, general and administrative expenses increased by 11.1% to 24,157 million yen but supported the growth in operating income.

Segment Performance and Regional Trends

By segment, the overseas wholesale business performed strongly with net sales of 37,552 million yen (16.0% Year-over-Year increase) and operating income of 10,082 million yen (17.8% YoY increase). The domestic wholesale business posted net sales of 6,506 million yen (6.0% YoY increase) and operating income of 2,389 million yen (flat). The retail business saw net sales decline by 16.8% to 1,558 million yen, with operating losses widening. Regionally, Europe & Middle East increased to 12,463 million yen (Year-over-Year increase), and North and South America also recorded higher sales. Foreign exchange fluctuations contributed to the rise in selling, general and administrative expenses.