Financial Summary for the 2nd Quarter of the Fiscal Year Ending June 2026 [Japanese GAAP] (Consolidated)

Overview of Earnings

For the 2nd quarter of the fiscal year ending June 2026, net sales amounted to 137,155 million yen, marking a 5.2% increase YoY, whereas operating income declined by 23.1% YoY to 3,733 million yen. Ordinary income was 4,498 million yen (21.1% decrease YoY), and net income attributable to owners of parent was 2,756 million yen (25.4% decrease YoY). The increase in sales was driven by growth in existing store sales of golf equipment, competitive and general sports goods, and outdoor products. However, profit levels were impacted by demand restraint, intensified inventory liquidation efforts, and increased personnel and other costs, resulting in a decline in gross profit margin and a rise in selling, general and administrative expenses ratio.

Financial Position, Dividends, and Outlook

Total assets amounted to 217,926 million yen (an increase of 12,006 million yen from the end of the previous term), liabilities were 100,689 million yen (an increase of 15,912 million yen), and net assets totaled 117,236 million yen (a decrease of 3,906 million yen). Treasury stock increased substantially to 2,659,828 shares due to the establishment of a Stock Supply Adjustment Trust®. Dividends are forecast at 25.00 yen per share at the end of the 2nd quarter and 50.00 yen annually, unchanged from the previous term. The full-year earnings guidance remains unchanged, with net sales projected at 282,000 million yen (5.0% increase YoY) and operating income at 9,000 million yen (5.7% increase YoY).