FY March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Business Performance Overview

For the cumulative consolidated third quarter period of FY March 2026, net sales amounted to JPY 406,341 million (2.7% decrease YoY), operating income was JPY 58,065 million (3.1% decrease YoY), and ordinary income totaled JPY 63,831 million (3.3% decrease YoY). Net income attributable to owners of the parent reached a record high of JPY 51,267 million (10.3% increase YoY) due to gains on sales of equity-method investments and other factors. The domestic department store business recorded a decline in revenue due to a rebound in overseas customer sales, but sales from domestic customers remained solid. Continued control of selling, general and administrative expenses helped limit the decline in operating income. The credit, finance, and membership club businesses increased revenue driven by new member growth but experienced a decrease in income due to reduced reversal of allowance for doubtful accounts. The real estate segment saw an increase in operating income due to higher rental income, and other businesses achieved both revenue and profit growth.

Capital Policy and Earnings Guidance Revision

The consolidated earnings forecast for FY March 2026 has been revised, with net sales projected at JPY 554,000 million (0.4% decrease from previous forecast), operating income at JPY 78,000 million (unchanged from previous forecast), ordinary income at JPY 81,000 million (5.2% increase from previous forecast), and net income attributable to owners of the parent at JPY 65,000 million (4.8% increase from previous forecast). Regarding the share buyback, a resolution was passed to acquire shares up to a cap of JPY 30 billion during the period from February 9, 2026 to February 8, 2027, with all acquired shares scheduled for cancellation on February 26, 2027. This initiative aims to strengthen shareholder returns by targeting a total return ratio of over 70%.