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Revision of earnings forecasts5253COVER CorporationInformation and Communications, Services and Others

Notice Regarding the Recording of an Extraordinary Loss, Differences Between Full-Year Earnings Forecasts and Actual Results, and the Voluntary Return of Executive Compensation

Actual results for the fiscal year ending March 2026 were 6.0% below the previous forecast for net sales, 13.9% below for operating income, 13.8% below for ordinary income, and 47.1% below for net income. In addition, the Company recognized an impairment loss of ¥3,199 million on Holoearth-related assets, and the Representative Director and President and the Director and CTO will voluntarily return part of their executive compensation.

Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-47.1
%
Wording
Definitive
How definitive the wording is.

Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 13 May 2025
Net Sales52,500→49,330million
-6.0%
Operating profit8,200→7,056million
-13.9%
Ordinary income8,200→7,068million
-13.8%
Profit attributable to owners of the parent5,700→3,016million
-47.1%
Net income per share86.82→45.95yen
-47.1%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

The reasons for the revision are a slowdown in overseas e-commerce sales due to tariff risks arising from changes in U.S. trade policy, short-term adjustments in streaming and its own e-commerce business resulting from changes in talent composition and the community environment, recognition of ¥1,856 million in cost of sales due to the disposal and write-down of slow-moving inventory, and recognition of an impairment loss on Holoearth-related software assets and other assets.

Details and amount of extraordinary loss

The full carrying amount of Holoearth-related software assets and other assets was impaired, and an impairment loss of ¥3,199 million was recognized as an extraordinary loss.

Previous-period resultsNet Sales 43,401 Millions of yen (yen and sen for net income per share) / Operating profit 8,001 Millions of yen (yen and sen for net income per share) / Ordinary income 7,962 Millions of yen (yen and sen for net income per share) / Net income for the current fiscal year 5,559 Millions of yen (yen and sen for net income per share) / Net income per share 88.7 Millions of yen (yen and sen for net income per share) / Fiscal Period Covered Fiscal year ending March 2025
Revised forecast
ItemDetails
Net Sales¥52,500 million → ¥49,330 million(-6.0%)
Operating profit¥8,200 million → ¥7,056 million(-13.9%)
Ordinary income¥8,200 million → ¥7,068 million(-13.8%)
Profit attributable to owners of the parent¥5,700 million → ¥3,016 million(-47.1%)
Net income per share86.82 yen → 45.95 yen
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast13 May 2025
Previous-period resultsNet Sales 43,401 Millions of yen (yen and sen for net income per share) / Operating profit 8,001 Millions of yen (yen and sen for net income per share) / Ordinary income 7,962 Millions of yen (yen and sen for net income per share) / Net income for the current fiscal year 5,559 Millions of yen (yen and sen for net income per share) / Net income per share 88.7 Millions of yen (yen and sen for net income per share) / Fiscal Period Covered Fiscal year ending March 2025
Reason for the revisionThe reasons for the revision are a slowdown in overseas e-commerce sales due to tariff risks arising from changes in U.S. trade policy, short-term adjustments in streaming and its own e-commerce business resulting from changes in talent composition and the community environment, recognition of ¥1,856 million in cost of sales due to the disposal and write-down of slow-moving inventory, and recognition of an impairment loss on Holoearth-related software assets and other assets.
Details and amount of extraordinary lossThe full carrying amount of Holoearth-related software assets and other assets was impaired, and an impairment loss of ¥3,199 million was recognized as an extraordinary loss.
Items this document does not state (2)
Dividend forecast revisionConsolidated / non-consolidated

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 cited a slowdown in overseas e-commerce sales due to tariff risks arising from changes in U.S. trade policy, short-term adjustments in streaming and its own e-commerce business resulting from changes in talent composition and the community environment, the disposal and write-down of slow-moving inventory totaling ¥1,856 million, and an impairment loss of ¥3,199 million on Holoearth-related software assets and other assets.

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Notice Regarding the Recording of an Extraordinary Loss, Differences Between Full-Year Earnings Forecasts and Actual Results, and the Voluntary Return of Executive Compensation | COVER Corporation (5253) timely disclosure | Komori