Supplementary Explanation Material for the 2nd Quarter (Interim Period) of the Fiscal Year Ending August 2026

Overview of Business Results

In the 2nd quarter of the fiscal year ending August 2026, net sales reached 19.96 billion yen (YoY 109.8%), and operating income was 3.83 billion yen (YoY 113.5%), surpassing both plan and prior year results. The operating margin improved by 0.6 points YoY to 19.2%, indicating enhanced profitability. Chain sales totaled 44.92 billion yen, membership grew to 879,000, and the number of stores increased to 2,081, all showing upward trends. Membership growth was driven by strong new enrollments and improved retention of existing members, notably with steady increases in subscription contracts for protein and healthy beauty products.

Full-Year Earnings Forecast and Shareholder Returns

The full-year net sales forecast has been revised upward to 42.30 billion yen, operating income forecast to 7.70 billion yen, and net income attributable to owners of parent to 4.85 billion yen, all reflecting over 10% increases YoY. Correspondingly, the annual dividend forecast was raised from 25 yen to 30 yen, a 20% increase. The payout ratio is expected to be 57.0%, aiming to strengthen shareholder returns. Additionally, the shareholder benefit program was revamped to include new QUO cards and electronic money gifts based on continuous holding periods.