Fiscal Year Ending March 2027 — 2nd Quarter (Interim) Earnings Supplementary Materials

Performance Overview

In the 2nd quarter of the fiscal year ending March 2027, revenue was 83.3 hundred million yen (YoY 99.2%), essentially flat. However, due to sluggishness in the Fashion business and increased personnel expenses, operating income decreased to 1.9 hundred million yen (YoY -24.7%). The Entertainment segment is expected to post revenue and profit growth supported by robust customer traffic, and Anniversaire Bridal is expected to see revenue and profit increases due to strengthened order intake. The full-year forecast was revised based on the fiscal 26/3 results, with expected revenue of 1,990 hundred million yen, operating income of 180 hundred million yen, ordinary income of 173 hundred million yen, and net income attributable to owners of parent of 100 hundred million yen.

Shareholder Returns and Outlook

The dividend policy is to maintain dividends at least at the prior fiscal year level, aiming for a payout ratio of 30% or more and a total shareholder return ratio of 70% or more. Assuming achievement of profit targets in the final year of the medium-term plan, measures for the second half will be advanced. Recovery in Fashion may be delayed due to adverse weather and other factors, while Entertainment and Anniversaire are expected to continue pursuing growth. In line with the full-year forecast revision, cost containment measures such as reviewing store openings and renovation expenses will continue.