Supplementary Explanation Materials for Q3 Fiscal Year Ending March 2026

Business Overview

For the third quarter of the fiscal year ending March 2026, consolidated results showed net sales of 131.3 billion yen (YoY 101.5%), operating income of 7.1 billion yen (YoY 94.6%), ordinary income of 6.7 billion yen (YoY 97.8%), and net income attributable to owners of parent of 3.7 billion yen (YoY 81.6%). Existing stores across all businesses remained robust, achieving five consecutive quarters of year-over-year revenue growth. However, profits declined due to increased selling, general and administrative expenses driven by higher labor costs and store opening expenses, as well as a decrease in special income and increase in special losses.

Segment Performance Overview

The Fashion segment achieved net sales of 62,815 million yen (YoY 101.4%) due to steady performance at existing stores and new store openings but posted an operating loss of 165 million yen due to increased labor and store opening costs. The Entertainment segment achieved record operating income with net sales of 57,856 million yen (YoY 100.6%) and operating income of 6,390 million yen (YoY 112.5%) driven by higher customer unit price. The Anniversaire Bridal segment increased both revenue and profit with net sales of 8,987 million yen (YoY 107.4%) and operating income of 549 million yen (YoY 168.0%) due to increased number of weddings and higher pricing. The Real Estate Leasing segment remained almost flat with net sales of 5,356 million yen (YoY 104.6%).