Supplementary Financial Explanation Materials for the Fiscal Year Ending February 2026

Performance Overview

Net sales for the fiscal year ending February 2026 were 533.1 billion yen, representing 99.4% YoY and 97.8% of the plan, with same-store sales declining by 4.2% YoY. Gross profit was 183.0 billion yen, up 100.2% YoY, operating income was 31.0 billion yen, down 93.3% YoY, and ordinary income was 29.1 billion yen, 94.1% YoY. Net income attributable to owners of parent was 17.3 billion yen, securing a profit increase of 101.0% YoY. Selling, general and administrative expenses rose 2.1% YoY, but excluding the impact of M&A, they decreased 0.8% YoY through efficiency improvements and measures to address wage increases.

Segment Performance and Store Development

The home center business recorded net sales of 467.0 billion yen, 98.9% YoY, while the Express Price business achieved net sales of 65.8 billion yen, up 103.4% YoY. Hodaka operated 73 stores with net sales of 2.707 billion yen (+7.4% YoY) and operating income rising 5.6% YoY, maintaining strong performance. DCM Nicot operated 116 stores with net sales of 1.9095 billion yen (+3.0% YoY) and operating income soaring 62.1% YoY. With the consolidation of Encho and Hometech, the group operates 918 stores nationwide. The gross profit margin improved to 36.7%, and the sales ratio of private brand products increased to 27.0%.