Notice of Revision to Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending December 2026

Revision of Earnings Forecast

KOZO Holdings Co.,Ltd. has revised downward its full-year consolidated earnings forecast for the fiscal year ending December 2026. Net sales are revised from 20,500 hundred million yen to 19,200 hundred million yen; operating income from 102 million yen to -366 million yen; ordinary income from 102 million yen to -356 million yen; and net income attributable to owners of parent from 52 million yen to -403 million yen. Net income per share is also expected to decrease from 0.17 yen to -1.35 yen. Compared with the same period of the previous fiscal year, a substantial deficit is expected, with discrepancies in sales and profits across segments.

Factors This Period and Outlook

Based on results for the cumulative third quarter, the main causes identified in each segment are slower same-store sales, rising cost of goods sold, increased labor costs, and delays in opening new stores. Delays in renovations in overseas operations and increases in rent and maintenance costs have also had an impact, and operating income in the overseas segment is expected to deteriorate significantly to -91 million yen. The company plans to consider structural improvements including withdrawal or downsizing of businesses to return to profitability in subsequent fiscal years, and will announce concrete measures aimed at early recovery in the fiscal year ending December 2027 after plans are finalized.