Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending August 2026 [Japanese GAAP] (Non-Consolidated)

Performance Overview

In the second quarter of the fiscal year ending August 2026 (September 1, 2025 to February 28, 2026), net sales amounted to 10,388 million yen (38.6% decrease YoY), with an operating loss of 610 million yen, ordinary loss of 813 million yen, and interim net loss of 846 million yen. Despite the sales decline, efforts to improve the cost of goods sold ratio through an expanded share of private brand (PB) products and cost reductions were maintained, resulting in a gross profit margin of 52.1% (49.3% in the same period last year). The number of stores decreased to 206 due to store closures; however, the financial condition remains severe, having shifted into a deficit net asset position.

Outlook and Changes in Capital Structure

As of March 1, 2026, the company became a wholly owned subsidiary of World Co., Ltd., and was delisted from the Tokyo Stock Exchange Standard Market on the same date. Consequently, no earnings guidance is provided for the fiscal year ending August 2026. With financial support from World, liquidity concerns have been alleviated. Based on the medium-term management plan, the company will continue to strengthen its business foundation by reforming cost structures, enhancing PB product planning capabilities, and optimizing inventory levels, aiming for renewed growth.