Recognition of Extraordinary Losses and Revision of Full-Year Earnings Forecast
XEBIO holdings CO.,LTD. and its group (the individual consolidated entities concerned have not been identified)
Domestic and overseas operating assets and other assets, investment securities, delinquent receivables, Xebio Arena Sendai, shoes, wellness products, winter sports products, outdoor products, training wear and other products
Declining profitability of domestic and overseas operating assets and other assets; renovations to Xebio Arena Sendai and the donation of the building; sluggish sales of seasonal merchandise and apparel due to the impact of the warm winter and other factors; failure to achieve the planned gross profit margin; valuation losses under the lower-of-cost-or-market method and overseas inventory valuation losses; depreciation expense associated with the launch of the e-commerce system; and increases in personnel and store operating expenses, among other factors
Total extraordinary losses of ¥7,373 million are expected to be recognized, including impairment losses of ¥3,610 million, losses on valuation of investment securities of ¥751 million, losses on the sale of delinquent receivables of ¥296 million, and losses on disposal of fixed assets at Xebio Arena Sendai of ¥2,370 million.
The fourth quarter of the fiscal year ending March 2026 (the fiscal year from 1 April 2025 to 31 March 2026)
The full-year consolidated earnings forecast has been revised. Under the revised forecast, consolidated net sales are ¥252,377 million, consolidated operating income is ¥2,386 million, consolidated ordinary income is ¥4,669 million, net loss attributable to owners of the parent is ¥2,141 million, and consolidated basic loss per share is ¥51.73. Compared with the previous forecast, net sales are down ¥1,157 million, operating income is down ¥1,631 million, ordinary income is down ¥413 million, and net income attributable to owners of the parent is down ¥2,377 million.
Company response
Monthly director compensation will be reduced by up to 50% for 3 months. Monthly executive officer compensation will be reduced by up to 30% for 3 months.
Compensation reductions for directors and executive officers will be implemented for 3 months. Actual results may differ significantly due to various factors.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Losses and Revision of Full-Year Earnings Forecast |
| Date of occurrence | 1 May 2026 (the date on which the Board of Directors decided to revise the earnings forecast; the extraordinary losses are expected to be recognized in the fourth quarter of the fiscal year ending March 2026) |
| Subject Entity | XEBIO holdings CO.,LTD. and its group (the individual consolidated entities concerned have not been identified) |
| Target Locations / Products | Domestic and overseas operating assets and other assets, investment securities, delinquent receivables, Xebio Arena Sendai, shoes, wellness products, winter sports products, outdoor products, training wear and other products |
| Cause | Declining profitability of domestic and overseas operating assets and other assets; renovations to Xebio Arena Sendai and the donation of the building; sluggish sales of seasonal merchandise and apparel due to the impact of the warm winter and other factors; failure to achieve the planned gross profit margin; valuation losses under the lower-of-cost-or-market method and overseas inventory valuation losses; depreciation expense associated with the launch of the e-commerce system; and increases in personnel and store operating expenses, among other factors |
| Amount of Impact on Business Performance | Total extraordinary losses of ¥7,373 million are expected to be recognized, including impairment losses of ¥3,610 million, losses on valuation of investment securities of ¥751 million, losses on the sale of delinquent receivables of ¥296 million, and losses on disposal of fixed assets at Xebio Arena Sendai of ¥2,370 million. |
| Accounting period in which recognized | The fourth quarter of the fiscal year ending March 2026 (the fiscal year from 1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast has been revised. Under the revised forecast, consolidated net sales are ¥252,377 million, consolidated operating income is ¥2,386 million, consolidated ordinary income is ¥4,669 million, net loss attributable to owners of the parent is ¥2,141 million, and consolidated basic loss per share is ¥51.73. Compared with the previous forecast, net sales are down ¥1,157 million, operating income is down ¥1,631 million, ordinary income is down ¥413 million, and net income attributable to owners of the parent is down ¥2,377 million. |
| Directors' and officers' liability | Monthly director compensation will be reduced by up to 50% for 3 months. Monthly executive officer compensation will be reduced by up to 30% for 3 months. |
| Outlook | Compensation reductions for directors and executive officers will be implemented for 3 months. Actual results may differ significantly due to various factors. |
Items this document does not state (15)
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 reasons include impairment of domestic and overseas operating assets whose profitability has declined; losses on disposal of fixed assets associated with renovations to Xebio Arena Sendai and the donation of the building; sluggish sales of seasonal merchandise and apparel due to the warm winter; failure to achieve the planned gross profit margin; valuation losses under the lower-of-cost-or-market method and overseas inventory valuation losses; depreciation expense for the e-commerce system; and increases in personnel and store operating expenses.