Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Performance

During the consolidated cumulative third quarter period of the fiscal year ending March 2026, the sports market remained robust mainly in Asia, with increased brand recognition supported by the success of contract athletes in international competitions. Demand for badminton products increased in the Asian market, and sales of tennis products also grew. Despite the impact of a stronger yen, consolidated net sales reached a record high. Although selling, general and administrative expenses increased due to higher advertising and labor costs, the rise in gross profit outweighed these increases, resulting in record-high operating income. Net sales were 120,474 million yen (18.4% YoY increase), operating income was 12,932 million yen (13.5% YoY increase), and net income attributable to owners of parent for the quarter was 9,610 million yen (3.9% YoY increase).

Segment Performance and Financial Condition

The sports equipment business posted sales increases in all regions including Japan, Asia, North America, and Europe, with particularly strong performance in the Asian region where sales reached 63,478 million yen (25.7% YoY increase) and operating income was 9,066 million yen (14.0% YoY increase). In North America, operating income decreased due to increased selling, general and administrative expenses. The sports facility business experienced slight decreases in sales and profits. On the consolidated balance sheet, total assets were 123,671 million yen (up 14,120 million yen from previous fiscal year-end), liabilities were 46,983 million yen (up 6,858 million yen), and net assets were 76,688 million yen (up 7,261 million yen). There is no change to the earnings guidance for the fiscal year ending March 2026.