Financial Summary for the Fiscal Year Ending February 2026 [Japanese GAAP] (Consolidated)

Overview of Business Performance

For the fiscal year ending February 2026, consolidated net sales reached JPY 167.085 billion (6.7% YoY increase), operating income was JPY 4.325 billion (164.4% YoY increase), and ordinary income amounted to JPY 5.44 billion (162.0% YoY increase). Net income attributable to owners of parent was JPY 3.793 billion, a 75.1% decrease YoY. The increase in net sales was primarily driven by strong performance of the men's brands 'AVIREX' and 'SCHOTT', as well as contributions from the newly consolidated subsidiary Daytona International Co., Ltd. Conversely, the decline in net income was affected by reduced non-recurring gains from prior periods and increased tax burden. The gross profit margin improved by 1.1 points compared to the previous fiscal year, and selling, general and administrative expenses were well controlled, yet the challenging business environment persists.

Financial Position and Cash Flow Situation

Total assets stood at JPY 174.204 billion (an increase of JPY 33.045 billion compared to the previous fiscal year), liabilities were JPY 74.883 billion (an increase of JPY 41.955 billion), and net assets were JPY 99.321 billion (a decrease of JPY 8.909 billion). The equity ratio declined to 57.0%. Cash flows from operating activities showed a cash outflow of JPY 7.717 billion, investing activities recorded an outflow of JPY 27.353 billion, and financing activities generated an inflow of JPY 16.995 billion. Cash and cash equivalents at the end of the period decreased to JPY 27.955 billion.

Segment Performance

Net sales from the apparel-related business were JPY 162.212 billion (7.6% YoY increase), reflecting strong performance in men's brands and contributions from the newly consolidated subsidiary. Although some women's brands struggled, others performed well thanks to strengthened SNS initiatives and event activities. Other businesses reported JPY 560.2 million in net sales (16.1% YoY decrease), with Waterfront Co., Ltd., which designs, manufactures, and sells umbrellas, newly consolidated as a subsidiary.

Outlook

For the fiscal year ending February 2027, despite uncertainties in the market environment, net sales are expected to increase 19.7% YoY to JPY 200 billion, operating income is projected to rise 73.4% YoY to JPY 7.5 billion, and net income attributable to owners of parent is forecast to grow 103.0% YoY to JPY 7.7 billion. As the final year of the current medium-term management plan, efforts will be focused on improving profitability and capital efficiency.