Supplementary Explanation Materials for the Second Quarter (Interim) Financial Summary for the Fiscal Year Ending August 2026

Overview of Business Results

Net sales for the second quarter (first half) of the fiscal year ending August 2026 totaled 143.937 billion yen, representing 105.3% year-over-year and 100.7% versus plan, exceeding both prior year and plan. Operating income was 4.074 billion yen, up 118.4% year-over-year and 116.4% versus plan. Interim net income was 2.819 billion yen, showing a 113.2% increase year-over-year and 112.8% versus plan, achieving profit growth. Gross profit margin declined by 0.11 points year-over-year to 27.08%, while the selling, general and administrative (SG&A) expense ratio improved by 0.5 points year-over-year to 24.2%. Although SG&A expenses rose due to higher personnel, advertising, and promotional costs, overall spending was restrained compared to the same period last year.

Sales Trends by Segment and Channel

By sales channel, existing stores in Tokyo and corporate offices performed strongly, resulting in a 105.3% year-over-year sales increase company-wide. By product category, personal computers, air conditioners, and mobile phones were particularly strong, with PC units up 140.2% year-over-year and mobile phones up 112.6%. Overall net sales increased 105.4% year-over-year. The number of stores remained steady at 139 compared to the previous fiscal year-end, while corporate offices increased to 15.

Financial Position and Outlook

On the balance sheet, total assets amounted to 120.077 billion yen, a decrease of 708 million yen from the previous fiscal year-end. Total liabilities were 48.537 billion yen, down 2 billion yen, and total net assets increased by 1.291 billion yen to 71.539 billion yen. For the full fiscal year ending August 2026, the company forecasts net sales of 294 billion yen, operating income of 8.2 billion yen, ordinary income of 8.5 billion yen, and net income of 5.3 billion yen, planning for year-over-year increases in both sales and profit compared to the previous forecast.