Supplementary Materials for the Third Quarter Financial Results for the Fiscal Year Ending March 2026

Overview of Financial Results

Consolidated net sales for the third quarter of the fiscal year ending March 2026 were 515,864 million yen, a slight increase of 0.2% year-over-year. In contrast, operating income declined 12.6% year-over-year to 25,266 million yen, and net income attributable to owners of parent decreased 22.7% year-over-year to 28,979 million yen. By segment, the department store business recorded net sales of 463,270 million yen (down 3.8% YoY) and operating income of 17,785 million yen (down 23.6% YoY), both declining. The food business posted net sales of 329,701 million yen (up 1.7% YoY) and operating income of 7,904 million yen (up 14.5% YoY), showing growth in both revenue and profit. The commercial facilities business experienced declines in sales and profit, while other businesses saw substantial increases in both revenue and profit.

Outlook

For the full fiscal year, net sales are projected to be 689,000 million yen, a slight increase of 1.1% year-over-year; however, operating income is forecasted at 30,000 million yen (down 13.9% YoY), and net income attributable to owners of parent is expected to decline by 31.1% to 24,000 million yen. While the department store business continues to face declining sales, the food business maintains steady growth. Capital expenditures are planned at 39,457 million yen for the full year, focusing on the department store segment. Increasing personnel expenses and depreciation costs are pressuring profits.