Notice of Recognition of Corporate Tax Adjustments and Revision of Full-Year Earnings Forecast for the Fiscal Year Ending August 2026

Overview of Earnings Revision

Axas Holdings Co.,Ltd. has revised its consolidated earnings forecast for the fiscal year ending August 2026. Net sales are expected to decline compared with the previous forecast, and operating income, ordinary income, and net income attributable to owners of parent have each been significantly revised downward. The company attributes these factors to a slowdown in the recovery of personal consumption despite improvements in employment and income conditions, surging raw material and resource prices, prolonged yen depreciation, and rising selling, general and administrative expenses. In addition, after careful consideration of the recoverability of deferred tax assets, the company will record a corporate tax adjustment (loss) of 100 million yen and expects to record 101 million yen for the full-year cumulative period.

Outlook and Key Points

By segment, some profit improvement factors are seen in retail, import/wholesale, and real estate businesses; however, overall profitability is expected to be pressured by rising personnel and SG&A expenses and higher raw material costs. As raw material prices remain elevated and currency impacts may affect profitability over the medium term, strengthening promotional activities and cost management will be focal points going forward.