SHIMAMURA Co.,Ltd.

The SHIMAMURA Group’s core business is apparel retailing, primarily in Japan, and it operates the following brands. The Shimamura business expanded its product assortment mainly through private-label (PB) and character merchandise. It sells products combining functionality and comfort, centered on its PB brands FIBER DRY and CLOSSHI PREMIUM. As part of the evolution of its PB offering, it introduced functional materials such as Ultra COOL into products under Ikiki Lab and Minmin Lab. Character merchandise includes limited-edition products developed with idol groups and corporate collaboration products. To strengthen sales, the group pursued initiatives including building sales less dependent on temperature, influencer- and character-based campaigns, regional measures, product development and promotions adapted to seasonal fluctuations, and online-store services such as in-store pickup and bundled purchases. The online store performed well, particularly at urban stores, and cross-channel traffic between stores and online progressed. During the interim consolidated accounting period, 5 stores were opened and 5 were closed, bringing the total to 1,423 stores. Revenue increased 3.1% year on year to ¥262.976 billion. The Avail business expanded its assortment centered on jointly developed brands (JB) and promoted line robbing of character merchandise. To strengthen sales, it implemented initiatives including Avail Week and Avail Fest and sought to raise awareness through appearances at popular fashion events. The number of stores during the interim consolidated accounting period was 323, and revenue increased 7.5% year on year to ¥37.493 billion. The Birthday business expanded its PB and JB offerings and launched a Birthday-exclusive character specialist brand to attract a broad range of target customers. Sales initiatives included the Outing Support Fair and parent-child campaigns linked to e-commerce and social media. The number of stores was 343, and revenue increased 1.8% year on year to ¥40.883 billion. The Chamble business expanded its JB offering and character merchandise and gifts. It promoted higher customer traffic through improved event-area presentation using a new layout, store-visit stamp cards and the introduction of food trucks, while also promoting use of the online store. The number of stores was 125, and revenue increased 19.5% year on year to ¥9.896 billion. The Divalo business performed well with trend products such as sandals that can be put on while standing. It opened a store on Shimamura Park, the integrated online store for the group’s businesses. It operated 19 stores, and revenue increased 3.2% year on year to ¥556 million. The Sim Meng Le business is a general apparel retailer operating throughout Taiwan. It expanded its product lineup through Japanese PB products and influencer campaigns. To strengthen sales, it used popular influencers and opened stores in urban areas to raise awareness. The number of stores was 45, and revenue increased 17.2% year on year to NT$1.094 billion (¥5.452 billion). As a result, consolidated revenue was ¥357.260 billion, up 4.0% year on year, operating profit was ¥33.129 billion, up 5.3%, ordinary profit was ¥34.948 billion, up 7.3%, and interim net profit attributable to owners of the parent was ¥24.191 billion, up 5.6%. Cash and cash equivalents at the end of the period were ¥42,743 million. Net cash provided by operating activities was ¥27,194 million, net cash used in investing activities was ¥103,690 million, and net cash used in financing activities was ¥7,959 million. Diluted interim net income per share was ¥103.85 in the previous interim period and ¥116.51 in the current interim period. The stock split, at a ratio of 3-for-1, was effective 21 February 2026. There were no applicable matters. In Japan, revenue for the interim consolidated accounting period was ¥351.807 billion, up 3.8% year on year, operating profit was ¥32.683 billion, up 4.6%, ordinary profit was ¥34.542 billion, up 6.7%, and interim net profit was ¥23.873 billion, up 5.0%.