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

Overview of Business Performance

During the cumulative consolidated third quarter period of the fiscal year ending March 2026, net sales slightly increased to ¥188.803 billion (0.3% YoY increase). However, operating income decreased significantly to ¥2.494 billion (58.9% YoY decrease), ordinary income was ¥4.078 billion (41.2% YoY decrease), and net income attributable to owners of parent declined substantially to ¥866 million (77.9% YoY decrease). The decline in profits was primarily due to a drop in gross profit margin, recording of product valuation losses, costs related to the closure of low-efficiency stores, and the recording of one-time special losses. Selling, general and administrative expenses increased due to rising personnel expenses and system renewal costs. By segment, winter sports declined 11.4% due to climatic factors, golf decreased 2.0%, and sports apparel declined 1.7%, whereas general competitive sports and shoes increased 4.0%.

Financial Position and Future Outlook

Assets increased to ¥216.596 billion compared to the end of the previous fiscal year due to an increase in merchandise, while liabilities also rose to ¥96.117 billion due to increased accounts payable and other factors. Net assets decreased to ¥120.478 billion as a result of dividend payments and treasury stock acquisitions. The equity ratio declined to 55.3%. There are no changes to the full-year earnings forecast for the fiscal year ending March 2026, with expected net sales of ¥253.534 billion (1.2% YoY increase), operating income of ¥4.017 billion (42.7% YoY decrease), and net income attributable to owners of parent of ¥236 million (75.7% YoY decrease).