Fiscal Year Ending February 2027: Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

For the interim consolidated accounting period, net sales amounted to 14,766,104 thousand yen (Year-over-Year -1.0%), operating income was 173,346 thousand yen (-40.3%), ordinary income was 187,799 thousand yen (-40.2%), and net income attributable to owners of parent for the interim period was 86,487 thousand yen (-52.6%), representing decreases. Contributing factors included sluggish customer traffic due to adverse weather, insufficient factors reducing cost of goods sold, and recording of M&A-related expenses. The structure consisted of 116 directly managed stores and 6 Sun Mall stores; efforts were made to reduce costs, strengthen handling of original products, and create synergies. The full-year earnings forecast for the fiscal year ending February 2027 remains unchanged from the previous announcement.

Financial Position and Cash Flows

Total assets increased to 11,150,777 thousand yen compared with the previous fiscal year, and the equity ratio was 52.7%. Cash and cash equivalents decreased to 2,852,795 thousand yen. Cash flows from operating activities were 542,813 thousand yen, cash flows from investing activities were -397,319 thousand yen, and cash flows from financing activities were -311,882 thousand yen, resulting in a net decrease in total cash.