Fiscal Year Ending February 2026 3rd Quarter Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Performance

For the consolidated cumulative period of the 3rd quarter of the fiscal year ending February 2026, net sales reached 256,166 million yen (7.7% Year-over-Year increase). Operating income was 11,597 million yen (8.7% Year-over-Year decrease), ordinary income was 11,403 million yen (27.4% Year-over-Year decrease), and net income attributable to owners of parent for the quarter was 7,071 million yen (27.4% Year-over-Year decrease). Although net sales increased, operating income and net income declined, primarily due to the significant impact of gains from the sale of investment securities recorded in the previous fiscal year. Segment-wise, the retail segment recorded 208,562 million yen (7.7% Year-over-Year increase). The core home center division performed steadily in household goods and car/leisure goods, while building materials and gardening supplies showed sluggish growth. The remodeling services and pet business saw substantial sales growth due to becoming wholly owned subsidiaries. The wholesale segment decreased, with net sales of 3,042 million yen (11.3% Year-over-Year decrease) and operating income of 388 million yen (21.7% Year-over-Year decrease). The foodservice segment had net sales of 44,815 million yen (10.0% Year-over-Year increase), but operating income declined to 3,917 million yen (9.7% Year-over-Year decrease). The real estate segment secured stable earnings with net sales of 10,937 million yen (6.2% Year-over-Year increase) and operating income of 2,656 million yen (3.3% Year-over-Year increase).

Financial Position and Future Outlook

Total assets stood at 347,630 million yen (an increase of 12,984 million yen from the end of the previous consolidated fiscal year), with increases primarily in merchandise, buildings and structures, goodwill, and notes and accounts receivable, compensating for a decrease due to land sales. Liabilities totaled 220,411 million yen (increase of 7,233 million yen from end of previous consolidated fiscal year), mainly due to increases in accounts payable and electronically recorded monetary obligations. Net assets were 127,218 million yen (an increase of 5,751 million yen from the end of the previous consolidated fiscal year), supported by an increase in retained earnings and a decrease in treasury shares. The full-year earnings forecast for the fiscal year ending February 2026 has been revised, projecting net sales of 342,500 million yen (8.5% Year-over-Year increase), operating income of 14,500 million yen (10.7% Year-over-Year decrease), and net income attributable to owners of parent of 8,000 million yen (21.0% Year-over-Year decrease). The dividend forecast remains unchanged at 40.00 yen.