Notice Regarding Differences from Full-Year Earnings Guidance for the Fiscal Year Ending February 2026

Overview of Performance

For the full fiscal year ending February 2026, consolidated results showed net sales of 45,706 million yen (up 1.6% from previous forecast), operating income of 2,636 million yen (up 31.8%), ordinary income of 2,600 million yen (up 30.0%), and net income attributable to owners of parent of 2,192 million yen (up 82.7%), all exceeding the previous guidance. Non-consolidated results were also strong with net sales of 37,735 million yen (up 2.0%), ordinary income of 3,393 million yen (up 13.1%), and net income of 1,285 million yen (up 221.3%).

Reasons for Differences from Earnings Guidance

In the department store segment, duty-free sales from September to November exceeded prior assumptions, and although there was an impact from the Chinese government's travel advisory from December, sales to inbound foreign visitors excluding China remained strong. Furthermore, tighter control of selling, general and administrative expenses and special gains such as the reversal of redevelopment-related provisions surpassed previous forecasts. On a non-consolidated basis, a reduction in allowance for doubtful accounts contributed to profit improvement.