FY2026 Third Quarter Financial Summary (Non-consolidated)

Overview of Results

For the cumulative third quarter period, net sales amounted to 3,308,444 thousand yen (down 2.2% year-over-year), gross profit was 914,000 thousand yen, operating loss was 78,200 thousand yen, ordinary loss was 102,079 thousand yen, and quarterly net loss was 56,574 thousand yen. By segment, the footwear business recorded a decline in sales, while the real estate business achieved increased sales and profits; however, overall results were impacted by changes in purchasing trends and effects of raw material costs and foreign exchange. In the financial position, total assets increased compared with the previous fiscal year, while net assets decreased. The results for the first half prompted a revision of the full-year outlook for FY2026.

Outlook and Points of Caution

The full-year earnings forecast for FY2026 has been revised: net sales are projected at 4,816 million yen, and uncertainty remains regarding ordinary income and net income. There have been changes in accounting estimates, and the impact of a change in depreciation method (to the straight-line method) is disclosed. Future business developments to monitor include trends in rental and real estate for sale, and performance trends in women's and men's footwear within the footwear business.