Financial Results Presentation Materials for the Fiscal Year Ending February 2026 | and ST HD Co.,Ltd. (2685) timely disclosure

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Mixed performance

Direction inferred from the company’s description.

Scale

304351

¥ million

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Conditional

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Contents of this document

Briefing materials for use at the financial results briefing, centered on graphs and bullet pointsFull fiscal year ended February 202613 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥304,351 million+3.8%

Operating profit¥16,524 million+6.5%

Ordinary income¥16,827 million+5.4%

Net income¥9,498 million-1.2%

Gross Profit Margin54.6 %

Operating profit margin5.4 %

Selling, general and administrative expenses¥149,583 million

Results for the three months of the current quarter

DetailsAdastria standalone monthly same-store sales versus the previous year were 104.8% in Q1, 104.9% in Q2, 104.1% in Q3 and 109.7% in Q4. Physical stores were 103.8%, 102.8%, 104.8% and 108.6%, respectively, while EC sales were 107.6%, 111.6%, 102.3% and 112.7%.

Full-year earnings forecast

Net Sales

¥314,000 million

Gross profit

¥172,850 million

Gross Profit Margin

55 %

Selling, general and administrative expenses

¥155,650 million

Operating profit

¥17,200 million

Ordinary income

¥17,200 million

Profit attributable to owners of the parent

¥10,500 million

EBITDA

¥27,880 million

ROE

12.4 %

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Revenue was broadly in line with plan and the earnings forecast was achieved, while profit fell short. Under the investment plan, domestic store development was broadly in line with plan, systems investment was restrained through efficiency improvements, some overseas store development remained unspent, and other investment exceeded plan due to M&A investments.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Advertising expenses¥680 million increase
Personnel expenses¥520 million increase
Equipment costs¥3,650 million increase
Other SG&A expenses¥-40 million decrease
Foreign Exchange Gains¥200 million
Gain on sale of the Fukuoka Distribution Center¥3,400 million
Impairment losses on goodwill and intangible assets¥2,500 million
Impairment losses on stores¥1,100 million
Loss on sale of shares of subsidiaries and affiliates¥690 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Fashion demand is expected to remain firm. The plan is to offset the weaker yen in the second half by improving inventory management accuracy and restraining discounts through the strengthening of physical stores. Numerical assumptions for foreign exchange rates, raw material prices and other factors are not disclosed.

New initiatives

Transition to a holding company structure and change in the management structure
Opening up and ST and expanding participation by external brands
Establishment of a Malaysian subsidiary and store openings
Continued new store openings in Southeast Asia
Opening BUZZWIT's first multi-brand shop
Strengthening entry-price products, collaborations and short-lead-time production at GLOBAL WORK

Key KPIsA metric the company considers important as a management benchmark.

and ST GMV¥462 100 million
Year on year against the same period last year+14.8%
Total and ST members2,170 10,000 people
Year-on-year change+2,000,000 people
Active members780 10,000 people
Year-on-year change+300,000 people
Shops outside the Group53 shops
Year-on-year change+26 shops
Domestic EC ratio28.8 %
Own EC ratio14.6 %

Segment results

Platform Business

Net Sales¥14,000 million

Global Business

Net Sales¥23,800 million

Brand retail business

Net Sales¥279,800 million

New Adastria and ST Co., Ltd. Holdings

Net Sales242,718

Year-on-year change in revenue104.9

Operating profit12,951

Year-on-year operating profit growth-9.5

Domestic Group companies

Net Sales27,326

Year-on-year change in revenue-1

Operating profit2,203

Year-on-year operating profit growth63.6

Overseas Group companies

Net Sales23,858

Year-on-year change in revenue-0.3

Operating profit1,388

Year-on-year operating profit growth159.1

ZETTON

Net Sales14,759

Year-on-year change in revenue1

Operating profit23

Operating profit for the same period of the previous yearOperating profit for the same period of the previous year: ▲¥411 million

Medium-term management plan targets

Target fiscal yearFiscal year ending February 2030

Consolidated revenue4,000 %

Revenue unit¥100 million

GMV1,000 %

GMV unit¥100 million

Consolidated operating margin8 %

Financial targets

ROE target15 %

Actual ROE12 %

DOE policy4.5 %

DOE policy unit% or higher

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Special loss related to special retirement bonuses¥1,200 million

DetailsLoss associated with the payment of special retirement bonuses to 2 directors scheduled to retire

Number of stores and locations

Consolidated store count at February 2026 year-end1,674 Location

Store openings during the period115 Location

Store closures during the period59 Location

Changes during the period-8 Location

Planned store openings for the fiscal year ending February 2027115 Location

Planned store closures for the fiscal year ending February 202737 Location

Capital expenditures

Fiscal year ended February 2026 results¥157 100 million

Fiscal year ended February 2026 plan¥146 100 million

Plan for the fiscal year ending February 2027¥142 100 million

Annual Dividend

Fiscal year ended February 2026¥90 per share

Fiscal year ended February 2026 breakdown

Interim45

End of period45

FY2027/2 forecast¥90 per share

Breakdown of the forecast for the fiscal year ending February 2027

Interim45

End of period45

Payout ratio

Fiscal year ended February 202643.7 %

FY2027/2 forecast39.5 %

DOE

Fiscal year ended February 20265.2 %

FY2027/2 forecast4.9 %

Contents of this document
Item	Details
Document type	Briefing materials for use at the financial results briefing, centered on graphs and bullet points
Fiscal Period Covered	Full fiscal year ended February 2026
Net Sales	¥304,351 million (YoY +3.8%)
Operating profit	¥16,524 million (YoY +6.5%)
Ordinary income	¥16,827 million (YoY +5.4%)
Net income	¥9,498 million (YoY -1.2%)
Gross Profit Margin	54.6 %
Operating profit margin	5.4 %
Selling, general and administrative expenses	¥149,583 million
Results for the three months of the current quarter	Details Adastria standalone monthly same-store sales versus the previous year were 104.8% in Q1, 104.9% in Q2, 104.1% in Q3 and 109.7% in Q4. Physical stores were 103.8%, 102.8%, 104.8% and 108.6%, respectively, while EC sales were 107.6%, 111.6%, 102.3% and 112.7%.
Full-year earnings forecast	Net Sales ¥314,000 million / Gross profit ¥172,850 million / Gross Profit Margin 55 % / Selling, general and administrative expenses ¥155,650 million / Operating profit ¥17,200 million / Ordinary income ¥17,200 million / Profit attributable to owners of the parent ¥10,500 million / EBITDA ¥27,880 million / ROE 12.4 %
Self-assessment against the plan	Revenue was broadly in line with plan and the earnings forecast was achieved, while profit fell short. Under the investment plan, domestic store development was broadly in line with plan, systems investment was restrained through efficiency improvements, some overseas store development remained unspent, and other investment exceeded plan due to M&A investments.
Segment results	Platform Business Net Sales ¥14,000 million / Year on year against the same period last year Not disclosed / Global Business Net Sales ¥23,800 million / Year on year against the same period last year Not disclosed / Brand retail business Net Sales ¥279,800 million / Year on year against the same period last year Not disclosed / New Adastria and ST Co., Ltd. Holdings Net Sales 242,718 / Year-on-year change in revenue 104.9 / Operating profit 12,951 / Year-on-year operating profit growth -9.5 / Domestic Group companies Net Sales 27,326 / Year-on-year change in revenue -1 / Operating profit 2,203 / Year-on-year operating profit growth 63.6 / Overseas Group companies Net Sales 23,858 / Year-on-year change in revenue -0.3 / Operating profit 1,388 / Year-on-year operating profit growth 159.1 / ZETTON Net Sales 14,759 / Year-on-year change in revenue 1 / Operating profit 23 / Operating profit for the same period of the previous year Operating profit for the same period of the previous year: ▲¥411 million
Breakdown of Factors Affecting the Change	Factors Advertising expenses / Amount ¥680 million increase, Factors Personnel expenses / Amount ¥520 million increase, Factors Equipment costs / Amount ¥3,650 million increase, Factors Other SG&A expenses / Amount ¥-40 million decrease, Factors Foreign Exchange Gains / Amount ¥200 million, Factors Gain on sale of the Fukuoka Distribution Center / Amount ¥3,400 million, Factors Impairment losses on goodwill and intangible assets / Amount ¥2,500 million, Factors Impairment losses on stores / Amount ¥1,100 million, Factors Loss on sale of shares of subsidiaries and affiliates / Amount ¥690 million
Key KPIs	Indicator name and ST GMV / Value ¥462 100 million / Year on year against the same period last year ¥14.8 100 million, Indicator name Total and ST members / Value 2,170 10,000 people / Year-on-year change +2,000,000 people, Indicator name Active members / Value 780 10,000 people / Year-on-year change +300,000 people, Indicator name Shops outside the Group / Value 53 shops / Year-on-year change +26 shops, Indicator name Domestic EC ratio / Value 28.8 % / Year on year against the same period last year Not disclosed, Indicator name Own EC ratio / Value 14.6 % / Year on year against the same period last year Not disclosed
Number of stores and locations	Consolidated store count at February 2026 year-end 1,674 Location / Store openings during the period 115 Location / Store closures during the period 59 Location / Changes during the period -8 Location / Planned store openings for the fiscal year ending February 2027 115 Location / Planned store closures for the fiscal year ending February 2027 37 Location
Assumptions Underlying the Business Outlook	Fashion demand is expected to remain firm. The plan is to offset the weaker yen in the second half by improving inventory management accuracy and restraining discounts through the strengthening of physical stores. Numerical assumptions for foreign exchange rates, raw material prices and other factors are not disclosed.
Risk amount incorporated into the outlook	Special loss related to special retirement bonuses ¥1,200 million / Details Loss associated with the payment of special retirement bonuses to 2 directors scheduled to retire
Medium-term management plan targets	Target fiscal year Fiscal year ending February 2030 / Consolidated revenue 4,000 % / Revenue unit ¥100 million / GMV 1,000 % / GMV unit ¥100 million / Consolidated operating margin 8 %
Financial targets	ROE target 15 % / Actual ROE 12 % / DOE policy 4.5 % / DOE policy unit % or higher
Annual Dividend	Fiscal year ended February 2026 ¥90 per share / Fiscal year ended February 2026 breakdown Interim 45 / End of period 45 / FY2027/2 forecast ¥90 per share / Breakdown of the forecast for the fiscal year ending February 2027 Interim 45 / End of period 45
Payout ratio	Fiscal year ended February 2026 43.7 % / FY2027/2 forecast 39.5 % / DOE Fiscal year ended February 2026 5.2 % / FY2027/2 forecast 4.9 %
Capital expenditures	Fiscal year ended February 2026 results ¥157 100 million / Fiscal year ended February 2026 plan ¥146 100 million / Plan for the fiscal year ending February 2027 ¥142 100 million
New initiatives	Transition to a holding company structure and change in the management structure, Opening up and ST and expanding participation by external brands, Establishment of a Malaysian subsidiary and store openings, Continued new store openings in Southeast Asia, Opening BUZZWIT's first multi-brand shop, Strengthening entry-price products, collaborations and short-lead-time production at GLOBAL WORK

Items this document does not state (7)

Progress against full-year forecastUnit price and quantity metricsNumber of employeesAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Despite headwinds from unfavorable weather and the weaker yen, the Company achieved higher operating profit through efficiency improvements at its stores and headquarters and control of selling, general and administrative expenses. The gross profit margin fell below plan due to inventory clearance discounts and increased points awarded, while profit fell short of plan because of difficulties in the fall/winter sales season, the U.S. business and the food and beverage business.

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