Progress and Partial Update (Upward Revision) at the End of the Second Year of the “Mid-term Management Plan 2027” and “Responses to Achieve Management Considering Capital Costs and Stock Price”

Progress and Upward Revision of the Mid-term Management Plan 2027

K's Holdings Co., Ltd. reports the progress as of the end of the second year of the Mid-term Management Plan 2027, targeting March 2027 as the final year. Revenue has been revised upward to 785.0 billion yen (plus 15.0 billion yen compared to the initial plan), operating profit has been revised to 30.5 billion yen (plus 3.5 billion yen), and operating profit margin has been revised to 3.9% (plus 0.4 points). Net income attributable to owners of the parent remains unchanged at 20.0 billion yen. Operating cash flow over three years remains at 100.0 billion yen, and the ROE target remains at 8.0%.

Key Initiatives and Shareholder Return Policy

Key initiatives include re-evaluating existing store efficiency, strengthening customer service, expanding sales through digital transformation (DX), and improving capital efficiency. Specific measures involve revising staffing, store renovations, enhancing digital marketing, and installing solar power systems. The shareholder return policy aims for an effective total payout ratio of 80%, with ongoing flexible share buybacks and a dividend payout ratio of 40%. In April 2025, the company entered into a syndicated loan agreement totaling 100 billion yen to ensure stable funding.