Notice Regarding Monthly Sales Performance Compared to the Same Month of the Previous Year for May 2026

Business performance overview

For the 2nd quarter of the FY ending October 2026, consolidated net sales were 9,655 million yen (up 15.8% year over year), driven by expansion of D2C product sales and the introduction of new living and seasonal products. Meanwhile, AI diffusion led to reduced orders from the large-scale projects at subsidiary Kannart, weighing on the EC marketing segment's profit. The product planning-related business achieved substantial growth in revenue and profit due to strong performances from Chinese and Vietnamese subsidiaries. Overall consolidated operating profit rose significantly, and ordinary profit increased. Progress against the medium-term management plan is on track relative to the annual plan, with the interim period’s operating profit progress rate at 61.2%.

Outlook and growth strategy

As a growth strategy, we will expand D2C in the EC marketing business and build a global value chain by collaborating with domestic and international partners around our in-house EC sites (USP). We will promote development, manufacturing, and sale of functional textiles leveraging local bases in China and Vietnam, strengthening entries into the bedding and apparel markets. In the medium-term plan, we aim for growth in net sales and steady accumulation of operating profit, with implications for market capitalization targets.