Recognition of an Extraordinary Loss (Impairment Loss), Revision of the Full-Year Consolidated Earnings Forecast, and Unchanged Year-End Dividend Forecast
SENN INC. (California, USA)
Overseas wellness business; SENN INC. (California, USA)
Performance fell below the initial plan due to changes in the external environment, including US tariff policies and worsening conditions in the Middle East. Other factors included slower growth in television shopping, contraction of the mail-order catalog market, intensifying competition among e-commerce marketplaces, higher raw material, delivery, and third-party marketplace fees, and the cost burden associated with upfront investment in the US market.
¥35 million (extraordinary loss [impairment loss]). The reductions to the full-year consolidated earnings forecast are ¥877 million in net sales, ¥274 million in operating profit, ¥257 million in ordinary profit, and ¥168 million in profit attributable to owners of the parent.
Fiscal year ending July 2026 (1 August 2025 to 31 July 2026)
The full-year consolidated earnings forecast for the fiscal year ending July 2026 has been revised. The revised forecast is net sales of ¥11,105 million, operating profit of ¥258 million, ordinary profit of ¥271 million, profit attributable to owners of the parent of ¥188 million, and earnings per share of ¥44.00. The year-end dividend forecast remains unchanged at ¥15 per share.
The Company will reduce the amortization burden related to this business from the next fiscal year onward and work to improve its earnings structure. It will accelerate the optimization of its business portfolio and shift toward management focused on profitability, including through alliances with other companies and the use of external capital.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss (Impairment Loss), Revision of the Full-Year Consolidated Earnings Forecast, and Unchanged Year-End Dividend Forecast |
| Date of occurrence | 4 June 2026 (the date on which the Company resolved to recognize the impairment loss) |
| Subject Entity | SENN INC. (California, USA) |
| Target Locations / Products | Overseas wellness business; SENN INC. (California, USA) |
| Cause | Performance fell below the initial plan due to changes in the external environment, including US tariff policies and worsening conditions in the Middle East. Other factors included slower growth in television shopping, contraction of the mail-order catalog market, intensifying competition among e-commerce marketplaces, higher raw material, delivery, and third-party marketplace fees, and the cost burden associated with upfront investment in the US market. |
| Amount of Impact on Business Performance | ¥35 million (extraordinary loss [impairment loss]). The reductions to the full-year consolidated earnings forecast are ¥877 million in net sales, ¥274 million in operating profit, ¥257 million in ordinary profit, and ¥168 million in profit attributable to owners of the parent. |
| Accounting period in which recognized | Fiscal year ending July 2026 (1 August 2025 to 31 July 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast for the fiscal year ending July 2026 has been revised. The revised forecast is net sales of ¥11,105 million, operating profit of ¥258 million, ordinary profit of ¥271 million, profit attributable to owners of the parent of ¥188 million, and earnings per share of ¥44.00. The year-end dividend forecast remains unchanged at ¥15 per share. |
| Outlook | The Company will reduce the amortization burden related to this business from the next fiscal year onward and work to improve its earnings structure. It will accelerate the optimization of its business portfolio and shift toward management focused on profitability, including through alliances with other companies and the use of external capital. |
Items this document does not state (16)
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.Net sales declined due to US tariff policies, worsening conditions in the Middle East, slower growth in television shopping, contraction of the mail-order catalog market, and intensifying competition among e-commerce marketplaces. Profit also declined because of higher raw material, delivery, and third-party marketplace fees, as well as the cost burden associated with upfront investment in the US market.