Notice Regarding Differences Between the Forecast and Actual Results for the Interim Period of the Fiscal Year Ending May 2026 and Revision of Full-Year Earnings Forecast

Overview of Earnings Forecast Revision

For the consolidated interim results of the fiscal year ending May 2026, net sales exceeded the previous forecast by 3.2%; however, operating income, ordinary income, and net income attributable to owners of the parent for the interim period significantly declined both year-over-year and compared to the previous forecast. Consequently, the full-year consolidated earnings forecast was revised upwards for net sales to 319.9 billion yen (up 2.2% from previous forecast), while operating income was revised downward to 6.7 billion yen (down 35.0%), ordinary income to 6.9 billion yen (down 33.7%), and net income attributable to owners of the parent to 4.4 billion yen (down 36.2%).

Reasons for the Revision and Future Outlook

The delay in timing for price increases due to rising raw material costs pressured gross profit, while increased advertising expenses to mitigate customer declines caused by price adjustments and upfront investments such as recruitment costs for faster multi-store expansion suppressed profits. These impacts led to ordinary income significantly below the initial plan, resulting in the revision of the full-year earnings forecast. Going forward, we will continue to carefully monitor market environment changes and strive to improve profitability.