Fiscal Year Ending March 2026 Q3 Earnings Presentation Materials

Overview of Performance

In the consolidated financial results for the third quarter of the fiscal year ending March 2026, net sales were 120.4 billion yen (Year-over-Year +18.4%), operating income was 12.9 billion yen (+13.5%), and quarterly net income attributable to owners of parent was 9.6 billion yen (+3.9%), all reaching record highs. Along with a robust sports market, brand recognition improved due to the success of contracted athletes, leading to increased sales of badminton and tennis products. Although there was a negative impact from the stronger yen overseas, revenue growth exceeded the increase in selling, general and administrative expenses.

Segment Trends and Future Outlook

The sports goods business is composed of four regions: Japan, Asia, North America, and Europe. Sales in the Asia region surged significantly to 63.4 billion yen (Year-over-Year +25.7%). Sales in Japan also remained solid at 46.1 billion yen (+10.4%). Although selling, general and administrative expenses increased due to advertising costs and personnel expenses aimed at expanding brand awareness, the rise in gross profit outweighed these increases and boosted operating income. The full-year earnings forecasts for the fiscal year ending March 2026 remain unchanged, with net sales of 162.0 billion yen (Year-over-Year +17.2%) and operating income of 16.2 billion yen (+14.3%), as a continued favorable sports market environment is expected.