Komori
Occurring Fact8217OKUWA CO.,LTD.Retail

Notice Regarding the Recording of an Impairment Loss and Revision of the Earnings Forecast

The Company recognized impairment losses of ¥934 million in the fourth quarter of the fiscal year ending February 2026 for stores whose profitability had declined, bringing full-year impairment losses to ¥1,087 million. Against a backdrop of intensifying competition and increasingly polarized consumer spending due to higher prices, the Company revised downward its consolidated and non-consolidated earnings forecasts for the fiscal year ending February 2026.

Worth reading
45Recurring
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
934
¥ million (impairment loss)
Wording
Conditional
How definitive the wording is.

Recognition of impairment losses and revision of earnings forecasts

Subject Entity

OKUWA CO.,LTD. (the filing company; consolidated and non-consolidated financial results)

Target Locations / Products

Stores among the Company's fixed assets that showed declining profitability

This disclosure04/01/2026
Cause

The failure to secure customer traffic due to declining store profitability, intensifying competition across business formats, and the further polarization of consumer spending resulting from higher prices

Amount of Impact on Business Performance

Impairment losses of ¥934 million (extraordinary loss). Full-year impairment losses, including the ¥153 million recognized through the third quarter, totaled ¥1,087 million

Accounting period in which recognized

The fourth quarter accounting period and full year of the fiscal year ending February 2026 (consolidated and non-consolidated)

Impact on Earnings Forecast

The earnings forecasts were revised. The consolidated forecasts are operating revenue of ¥252,600 million, operating profit of ¥1,870 million, ordinary profit of ¥1,970 million and net income attributable to owners of the parent of ¥260 million. The non-consolidated forecasts are operating revenue of ¥251,000 million, ordinary profit of ¥1,780 million and net income of ¥210 million

Outlook

These forecasts are based on information available as of the date of this announcement, and actual results may differ from the forecast figures due to various factors

Event that occurred
ItemDetails
Event nameRecognition of impairment losses and revision of earnings forecasts
Subject EntityOKUWA CO.,LTD. (the filing company; consolidated and non-consolidated financial results)
Target Locations / ProductsStores among the Company's fixed assets that showed declining profitability
CauseThe failure to secure customer traffic due to declining store profitability, intensifying competition across business formats, and the further polarization of consumer spending resulting from higher prices
Amount of Impact on Business PerformanceImpairment losses of ¥934 million (extraordinary loss). Full-year impairment losses, including the ¥153 million recognized through the third quarter, totaled ¥1,087 million
Accounting period in which recognizedThe fourth quarter accounting period and full year of the fiscal year ending February 2026 (consolidated and non-consolidated)
Impact on Earnings ForecastThe earnings forecasts were revised. The consolidated forecasts are operating revenue of ¥252,600 million, operating profit of ¥1,870 million, ordinary profit of ¥1,970 million and net income attributable to owners of the parent of ¥260 million. The non-consolidated forecasts are operating revenue of ¥251,000 million, ordinary profit of ¥1,780 million and net income of ¥210 million
OutlookThese forecasts are based on information available as of the date of this announcement, and actual results may differ from the forecast figures due to various factors
Items this document does not state (17)
Date of occurrenceDate recognized / date notice receivedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

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 addition to the emergence of stores with declining profitability, intensifying competition across business formats and the further polarization of consumer spending due to higher prices made it difficult to secure customer traffic. As a result, operating revenue, operating profit and ordinary profit are expected to fall below the initial plan. Net income attributable to owners of the parent was revised because impairment losses of ¥934 million were recognized in the fourth quarter.

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Notice Regarding the Recording of an Impairment Loss and Revision of the Earnings Forecast | OKUWA CO.,LTD. (8217) timely disclosure | Komori