Stagnant personal consumption and slowing global economic growth

「During the interim consolidated accounting period from 1 April 2026 to 30 September 2026, the Japanese economy remained on a gradual recovery path, supported by improvements in employment and income conditions. However, uncertainty about the outlook continued due to sustained price increases, developments in the monetary and trade policies of various countries, and persistently high geopolitical risks.」

「The operating environment is expected to remain challenging, due in part to uncertainty over the outlook for personal consumption and rising raw material, labor and logistics costs.」

「The outlook remained uncertain as the impact of US tariff policies and high raw material prices associated with geopolitical risks drove inflation, while consumer purchasing power declined.」

「However, the outlook remained uncertain due to surging resource and material prices resulting from heightened geopolitical risks and sharp fluctuations in foreign exchange rates.」

「During the first three quarters of the current fiscal year on a consolidated cumulative basis, economic activity moved toward normalization due to the easing of restrictions following the reclassification of COVID-19 to Class 5, a boost in consumer activity from so-called revenge spending, increased inbound consumption due to the weaker yen, and improvements in employment and income conditions. However, consumer prices rose faster than incomes improved due to the impact of higher costs resulting from heightened geopolitical risks and the weaker yen, and the outlook for the domestic economy remained uncertain.」

「During the first two quarters of the current fiscal year on a consolidated cumulative basis, signs of normalization in socioeconomic activity were observed, including a gradual recovery in domestic demand and inbound demand. However, the economic outlook remained uncertain due to rising prices of various goods, including raw materials and energy, expanding geopolitical risks, and trends in interest rates and the US dollar/yen exchange rate.」

「Most of the group's sales come from business activities in Japan. If the domestic consumer market changes beyond expectations due to the declining and aging population in Japan, changes in consumer purchasing behavior, economic fluctuations, natural disasters, the spread of infectious diseases or other factors, the group's financial condition, operating results and other matters could be materially affected.」

「Sales, which had remained solid through the first half, declined 1.2% as personal consumption stagnated due to the consumption tax increase and abnormal weather, while sales activities were restricted by the cancellation of sporting events and requests to refrain from going out to prevent the spread of COVID-19 during the fourth quarter.」

「Although sales of baseball and softball equipment performed poorly due to the consumption tax increase and a warm winter, sales were nearly flat because casual wear and other products performed steadily. Selling, general and administrative expenses increased due to expanded sales channels and a larger workforce, resulting in lower profit.」

「However, challenging conditions are expected to continue due to changes in the distribution structure and sluggish consumption associated with the planned increase in the consumption tax rate this autumn.」

「In the retail segment, the Lodge PREMIUM SHOP e-commerce site for mountaineering equipment continued to perform steadily, but in-store sales performed poorly from autumn onward because temperatures remained higher than usual and consumer purchasing patterns changed.」

「The environment surrounding the sporting goods industry is expected to become more active ahead of the 2020 Tokyo Olympic and Paralympic Games. However, the declining birth rate and aging population and the globalization of the market are advancing rapidly, and the challenging conditions are expected to continue due to changes in the distribution structure and other factors.」

「During the first three quarters of the current fiscal year on a consolidated cumulative basis, Japan's economy continued to recover gradually as corporate earnings and employment conditions improved. Although concerns over uncertainty in international affairs continued, overseas economies performed steadily.」

「During the first two quarters of the current fiscal year on a consolidated cumulative basis, Japan's economy continued to recover gradually as corporate earnings improved and employment and income conditions continued to improve. However, uncertainty over international affairs increased, and the outlook remained uncertain.」

「Personal consumption remained stagnant, while the economic outlook continued to be uncertain amid concerns over rising uncertainty in overseas economies and the impact of fluctuations in the financial and capital markets.」

「During the current consolidated fiscal year, Japan's economy followed a gradual recovery trend, with corporate earnings and employment conditions improving. However, the economic outlook remained uncertain due to slowing emerging-market economies and heightened uncertainty stemming from the policy direction of the new US administration.」

「During the first three quarters of the current fiscal year on a consolidated cumulative basis, corporate earnings and employment conditions continued to improve, and the economy showed a gradual recovery. However, the outlook remained uncertain amid concerns over slowing emerging-market economies, the UK's withdrawal from the EU and the policy direction of the new US administration.」

「The economic outlook remained uncertain due to the slowdown in emerging-market economies, including China, and issues such as the UK's withdrawal from the EU in Europe.」

「During the first quarter of the current fiscal year on a consolidated cumulative basis, Japan's economy remained stagnant, with exchange rates and equity markets continuing to be unstable. Downside risks to the global economy were a concern due to the slowdown in emerging-market economies, including China, and uncertainty over the future political systems of the United States and Europe, leaving the economic outlook uncertain.」

「A sense of stagnation was evident in personal consumption, and the outlook remained uncertain amid a slowdown in the global economy, particularly in China, and financial market turmoil, including the rapid depreciation of the yen and decline in share prices since the beginning of the year.」