Notice Regarding Revision of Full-Year Earnings Guidance

Details of the Earnings Revision

World Co., Ltd. has revised its full-year earnings guidance for the fiscal year ending February 2026, lowering net sales from the previous forecast of 300,000 million yen to 282,000 million yen (a 6.0% decrease). Core operating income is expected to decline from 20,000 million yen to 16,400 million yen (an 18.0% decrease), operating income from 19,500 million yen to 16,000 million yen (a 17.9% decrease), and income before income taxes from 18,300 million yen to 14,200 million yen (a 22.4% decrease). Meanwhile, net income attributable to owners of parent is maintained at 12,000 million yen.

Reasons for the Revision and Future Outlook

The primary reason for the revision is the prioritization of inventory optimization and control of winter merchandise procurement as part of the restructuring of the apparel brand's earnings structure, resulting in sales during peak periods falling below plan. Additionally, an investment loss of 2.7 billion yen was recorded due to deteriorated performance of equity-method affiliate Laxus Technologies Inc., and this is expected to offset the operating income exceeding plan. Due to a reduction in corporate income taxes, net income remains unchanged, and the dividend forecast is maintained at an annual 109 yen (year-end 60 yen). These measures aim to strengthen the financial foundation in preparation for the next medium-term management plan.