FY2026 May Term Q2 (Interim) Financial Summary [Japan GAAP] (Consolidated)

Summary of Performance

The consolidated performance for Q2 of the fiscal year ending May 2026 (May 21, 2025 to November 20, 2025) recorded net sales of JPY 208.725 billion, a 12.3% decrease YoY, and an operating loss of JPY 2.995 billion. This was due to the impact of a ransomware attack on October 19, 2025, which disrupted the logistics system, resulting in suspension of order reception on the website and manual operation of the logistics system, causing sales decline and expansion of operating loss. Ordinary loss was JPY 3.814 billion, and net interim loss attributable to owners of parent was JPY 6.612 billion. By segment, the e-commerce business saw a 12.2% decrease in sales and an expansion of operating loss, and the logistics business also experienced reduced revenue and profits due to the system disruption.

Financial Position and Dividend Status

Total assets amounted to JPY 196.960 billion, a decrease of JPY 30.821 billion compared to the end of the previous fiscal year, with an equity ratio of 32.0%. This was influenced by treasury stock acquisitions and cancellations, and recording of expenses related to the system disruption response. The interim dividend was JPY 0 (down from JPY 19 in the same period last year), year-end dividend is undecided, and the full-year dividend forecast is also undecided. Earnings guidance has been withdrawn due to the impact of the ransomware attack.