Revised forecast
Fiscal year ending May 2026 · Full yearThe bar length represents the relative magnitude of change, based on the item that changed the most in this document.
Net sales fell below the previous fiscal year's actual results due in part to the continued pursuit of a customer acquisition strategy focused on profitability in the D2C business and the optimal allocation of advertising expenses. Ordinary profit declined due mainly to a decrease in gross profit accompanying the decline in net sales and a decrease in operating profit resulting from advertising investments in the fourth quarter. Net income declined because the Company recognized a ¥627 million valuation loss on shares of an affiliated company following a decline in the fair value of the EC Studio shares.
Valuation loss on shares of an affiliated company: ¥627 million
| Item | Details |
|---|---|
| Net Sales | -569 |
| Ordinary income | -114 |
| Profit attributable to owners of the parent | -686 |
| Fiscal Period Covered | Fiscal year ending May 2026 |
| Period Covered | Full year |
| Previous-period results | Net sales: ¥6,642 million; ordinary profit: ¥199 million; net income: ¥47 million; earnings per share: ¥9.54 |
| Reason for the revision | Net sales fell below the previous fiscal year's actual results due in part to the continued pursuit of a customer acquisition strategy focused on profitability in the D2C business and the optimal allocation of advertising expenses. Ordinary profit declined due mainly to a decrease in gross profit accompanying the decline in net sales and a decrease in operating profit resulting from advertising investments in the fourth quarter. Net income declined because the Company recognized a ¥627 million valuation loss on shares of an affiliated company following a decline in the fair value of the EC Studio shares. |
| Details and amount of extraordinary loss | Valuation loss on shares of an affiliated company: ¥627 million |
| Consolidated / non-consolidated | Non-consolidated |
Items this document does not state (4)
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.In the D2C business, net sales declined due in part to the continued pursuit of a customer acquisition strategy focused on profitability and the optimal allocation of advertising expenses. Ordinary profit deteriorated due mainly to a decrease in gross profit accompanying the decline in net sales and a decrease in operating profit resulting from advertising investments made in the fourth quarter to generate revenue in the following fiscal year. Net income declined due to the recognition of a ¥627 million valuation loss on shares of an affiliated company following a decline in the fair value of the EC Studio shares.