Fiscal Year Ending February 2026 Full-Year Financial Summary Q&A (Updated 2026/4/16)

Overview of Performance

This Q&A relates to the full-year financial results for the fiscal year ending February 2026. Despite concerns over rising logistics costs due to crude oil supply constraints, revenue growth is expected driven by expanding demand for secondhand goods and increasing savings consciousness. Inbound demand remains robust benefiting from the weak yen, with declines in Chinese tourists offset by increased demand from other regions. Gross margin improvement is mainly attributable to changes in the purchase coupon system, sales mix, and price control of winter inventory, and this trend is expected to continue. Leveraging high gross margins on low-priced merchandise, the company aims to maximize gross profit across a wide price range.

Outlook and Investment Strategy

The medium-term management plan indicates that the decline in operating margin is due to upfront investments, primarily in AI and DX, strengthening sourcing channels, and expansion into the U.S. Existing stores are expected to absorb fixed cost increases through sales growth and rising gross margin, improving operating margin. Labor cost increases reflect growth investments and base pay raises, but labor productivity will be enhanced through AI utilization to control SG&A expenses. Store openings target a scale of 800 to 1,000 stores domestically, proceeding at a pace of about 40 stores annually. Overseas, multiple stores operate in Thailand and Taiwan, and preparations for entry into the U.S. market are underway.