Recognition of an Extraordinary Loss (Impairment Loss) and Revision of the Full-Year Earnings Forecast
BAROQUE JAPAN LIMITED (the Company)
The SHEL'TTER TOKYO Tokyu Plaza Omotesando “Omokado” store (TST)
The decision to close the store in response to higher rents and a decline in inbound visitors from China. The revision to the earnings forecast reflects delays in EC shipments, an increase in inventory valuation losses at the core SC brands, rising costs across the entire supply chain, extraordinary losses including impairment losses, and the reversal of deferred tax assets.
¥555 million (extraordinary loss and impairment loss)
Second quarter (interim period) of the fiscal year ending February 2027
Revised. The consolidated full-year earnings forecast for the fiscal year ending February 2027 was revised to net sales of ¥50,832 million, operating profit of ¥111 million, ordinary loss of ¥39 million, net loss attributable to owners of the parent of ¥696 million, and loss per share of ¥19.30. No change is planned to the full-year dividend forecast of ¥38 per share.
Company response
Decision to close The SHEL'TTER TOKYO Tokyu Plaza Omotesando “Omokado” store
The Company expects the FB and SB brands to remain strong, EC shipment delays to be resolved during the first half, and customer traffic at AZUL BY MOUSSY to continue recovering. Accordingly, second-half earnings are expected to exceed those of the first half. However, full-year earnings are expected to fall short of the previous forecast.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss (Impairment Loss) and Revision of the Full-Year Earnings Forecast |
| Subject Entity | BAROQUE JAPAN LIMITED (the Company) |
| Target Locations / Products | The SHEL'TTER TOKYO Tokyu Plaza Omotesando “Omokado” store (TST) |
| Cause | The decision to close the store in response to higher rents and a decline in inbound visitors from China. The revision to the earnings forecast reflects delays in EC shipments, an increase in inventory valuation losses at the core SC brands, rising costs across the entire supply chain, extraordinary losses including impairment losses, and the reversal of deferred tax assets. |
| Amount of Impact on Business Performance | ¥555 million (extraordinary loss and impairment loss) |
| Accounting period in which recognized | Second quarter (interim period) of the fiscal year ending February 2027 |
| Impact on Earnings Forecast | Revised. The consolidated full-year earnings forecast for the fiscal year ending February 2027 was revised to net sales of ¥50,832 million, operating profit of ¥111 million, ordinary loss of ¥39 million, net loss attributable to owners of the parent of ¥696 million, and loss per share of ¥19.30. No change is planned to the full-year dividend forecast of ¥38 per share. |
| Suspended operations | Decision to close The SHEL'TTER TOKYO Tokyu Plaza Omotesando “Omokado” store |
| Outlook | The Company expects the FB and SB brands to remain strong, EC shipment delays to be resolved during the first half, and customer traffic at AZUL BY MOUSSY to continue recovering. Accordingly, second-half earnings are expected to exceed those of the first half. However, full-year earnings are expected to fall short of the previous forecast. |
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.The Company recognized an impairment loss after deciding to close the store in question in response to higher rents and a decline in inbound visitors from China. The downward revision to the earnings forecast was attributed to delays in EC shipments, an increase in inventory valuation losses, rising costs across the entire supply chain, the impairment loss and the reversal of deferred tax assets.