Notice Regarding Revision of Earnings Guidance for Consolidated Subsidiary (Kintetsu Department Store Co., Ltd.)

Details of Earnings Guidance Revision

Kintetsu Department Store Co., Ltd. revised its full-year earnings guidance for the fiscal year ending February 2026, upwardly adjusting net sales to 125,400 million yen (an increase of 3.6% from the previous forecast), operating income to 6,700 million yen (up 24.1%), ordinary income to 6,600 million yen (up 26.9%), and net income attributable to owners of parent to 3,700 million yen (up 5.7%). Non-consolidated results are also expected to improve with sales of 104,700 million yen (up 3.7%), operating income of 6,000 million yen (up 36.4%), and ordinary income of 5,750 million yen (up 36.9%). However, impairment of store assets at the Yokkaichi and Nara stores will result in special losses of 4,314 million yen consolidated and 4,356 million yen non-consolidated.

Reason for Revision and Outlook

The main reasons for revising the earnings guidance include stronger-than-expected performance at the “2025 Osaka-Kansai Expo Official Store” and an increase in duty-free sales, resulting in sales and profits exceeding the previous forecasts. Despite the increase in impairment losses, net income is generally expected to surpass the previous forecast. This revision applies to the consolidated subsidiary’s earnings guidance only and does not affect the consolidated earnings guidance of Kintetsu Group Holdings Co., Ltd.