Full-Year Financial Results Presentation Materials for the Fiscal Year Ending February 2026

Overview of Performance

Net sales for the fiscal year ending February 2026 reached a record high of 304.3 billion yen (YoY 103.8%). Despite challenges faced by key brands and the discontinuation of some businesses, the platform business posted 14.0 billion yen, the global business 23.8 billion yen, and the brand retail business 279.8 billion yen. The gross profit margin was 54.6% (Year-over-Year change ▲0.1p), reflecting improvements in markup rates and the ratio of high-margin businesses, although it fell short of plans due to discounts applied to reduce inventory. The SG&A ratio improved to 49.1% (Year-over-Year change ▲0.3p), contributing to operating income of 16.5 billion yen (YoY 106.5%). Ordinary income was 16.8 billion yen (YoY 105.4%), and net income attributable to owners of parent was 9.4 billion yen (YoY 98.8%).

Segment Performance and Extraordinary Gains/Losses

Sales of the new Adastria + and ST Co., Ltd. + and ST HD combined with group companies increased. Domestic group companies achieved approximately 105% sales increase, while overseas group companies achieved approximately 117% sales increase. The global business showed strong performance in Mainland China and Taiwan, increased sales in Hong Kong, and growth in Southeast Asia. The U.S. operations were fully withdrawn in July 2025. Extraordinary losses included 2.5 billion yen impairment of goodwill and intangible assets, 1.1 billion yen store impairments, and 690 million yen loss on the sale of equity in affiliates. For the fiscal year ending February 2027, an extraordinary loss of 1.2 billion yen is planned related to the payment of special retirement benefits.