Fiscal Year Ending February 2026 Full-Year Earnings Q&A Collection (Updated 2026/5/1)

Overview of Performance

The Q&A collection on the full-year earnings for the fiscal year ending February 2026 highlights concerns over rising logistics costs due to crude oil supply constraints, while the expanding demand for secondhand goods and increased frugality act as tailwinds, indicating potential for profit growth. Inbound demand remains strong benefiting from the weak yen, with the impact of decreased Chinese tourists offset by demand growth from other regions. Improvements in comparable store gross margin are mainly due to changes in the buyback coupon system, strong sales of low-priced products, and price control of winter inventory. Low-priced products have high gross margins, enabling profit generation through increased sales volume.

Outlook and Investment Plans

The medium-term management plan indicates that the decline in operating income margin is due to advance investments, mainly in AI and DX, strengthening procurement channels, and expansion into the U.S. market. Increases in personnel expenses relate to these growth investments, with efforts to appropriately control SG&A ratio through labor productivity improvements. The store opening plan targets 30 to 35 stores annually, emphasizing a balance between urban centers and regional areas, with long-term potential to expand to a scale of 800 to 1,000 stores. Overseas store rollouts are progressing in Thailand and Taiwan, with preparations underway for the first store launch in the U.S. market.