Fiscal Year Ending May 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

For the cumulative third quarter period of the fiscal year ending May 2026, consolidated net sales were JPY 286.877 billion (down 20.1% YoY), operating loss was JPY 12.484 billion (compared to operating income of JPY 9.81 billion YoY), ordinary loss was JPY 13.993 billion (compared to ordinary income of JPY 9.656 billion YoY), and net loss attributable to owners of the parent was JPY 14.020 billion (compared to net income of JPY 6.11 billion YoY). The primary factor was a system failure caused by a ransomware attack on October 19, 2025, which disrupted logistics systems and temporarily suspended order acceptance on the website, resulting in decreased sales and increased recovery costs.

Segment Performance and Financial Condition

In the e-commerce segment, the ASKUL business declined 24.4% YoY and the LOHACO business decreased 32.8%, while sales of group companies increased 5.8%. Operating loss expanded to JPY 11.49 billion due to a decline in gross profit margin and deterioration in logistics efficiency. Financially, total assets decreased to JPY 222.065 billion and net assets declined to JPY 59.441 billion, causing the equity ratio to fall to 25.1%. Shares outstanding were 89,771,300 shares and treasury stock was 233,328 shares at period end.

Dividend and Earnings Forecast

The annual dividend forecast for the fiscal year ending May 2026 is JPY 10, representing a significant reduction from JPY 38 in the previous comparable period. The full-year earnings forecast anticipates net sales of JPY 395 billion (down 17.9% YoY), operating loss of JPY 20.5 billion, and ordinary loss of JPY 22 billion, reflecting ongoing impacts of the system disruption.