Notice Regarding Revision of Full-Year Earnings Guidance

Overview of Earnings Guidance Revision

Aeon Kyushu Co., Ltd. has revised its full-year earnings guidance for the fiscal year ending February 2026. Consolidated operating revenue is expected to decrease by 0.7% from the previous forecast to 547,100 million yen; operating income is projected to increase by 0.9% to 10,700 million yen; ordinary income is anticipated to rise by 13.9% to 11,500 million yen; and net income attributable to owners of parent is forecast to grow by 11.3% to 5,900 million yen. Individual results show similar trends, with operating revenue expected to decline by 0.6% to 539,700 million yen, operating income to increase by 1.7% to 11,700 million yen, ordinary income to rise by 12.6% to 12,500 million yen, and net income to grow by 10.3% to 6,400 million yen.

Reasons for Revision and Future Outlook

The revision of individual results is attributed to steady food sales driven by new store openings, activation of existing stores, expanded value-for-money products responding to rising prices, and strengthened promotional activities. Meanwhile, sales of apparel and household leisure goods struggled, and delays in new store openings affected the total operating revenue, which is expected to reach 99.4% of the plan. On the profit side, enhanced cost-of-living support measures catering to saving-conscious consumers and a slight decline in gross profit margin were factors; however, the gross operating profit increased 1.6% year-over-year due to higher sales. Despite increased personnel expenses and investments in store DX initiatives, selling, general and administrative expenses were contained to 101.5% compared to the previous year due to improved productivity. Consolidated results are expected to exceed the plan for similar reasons.