Fiscal Year Ending February 2027 – Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance Trends

For the interim period, net sales were 40,511 million yen, 3.2% below the same period of the previous fiscal year, and operating, ordinary, and net income also declined significantly. The primary cause is a sharp reduction in operating profit due to rising costs such as raw material and labor costs and insufficient containment of selling, general and administrative expenses. The store network was adjusted to 855 stores, and measures in the medium-term management plan, such as strengthening digital promotion and private brand management, continue. An earnings briefing is planned, and a revision to the full-year forecast reflecting impacts including special losses and impairments has been announced.

Outlook and Impact on Shareholders

The full-year earnings forecast has been revised, and earnings per share for the full year are expected to be 0.88 yen, a low level. Cash and equity ratio remain relatively stable, but recovery may be delayed depending on future raw material cost trends and supply-demand conditions. Continued focus on store strategy and digital initiatives, rigorous cost management, and expansion of private brands are expected to be key.