COX CO.,LTD.

コックス is a corporate group primarily engaged in apparel retailing and operates as a single-segment business. During the interim consolidated period, the Group focused on expanding store sales and e-commerce sales. As a result, e-commerce sales increased to 114.2% of the year-earlier level and accounted for 12.7% of total sales, supporting company-wide sales. On the other hand, same-store sales fell to 95.4% of the year-earlier level, reflecting the impact of weather conditions, insufficient product freshness and sluggish regular-price sales, which affected overall performance. The Group continued to strengthen regular-price sales, centered on magazine collaboration products, as part of its efforts to maintain and improve its gross margin. However, the gross profit margin declined 2.5 percentage points from the year-earlier period to 61.6%, owing to increased in-store markdowns resulting from promotional measures aimed at optimizing inventory levels, the recognition of inventory write-downs and foreign exchange effects. In the second half, the Group will seek to improve profitability by raising the proportion of regular-price sales through the development and stronger sales of priority products, while continuing to optimize inventory levels. During the period, 2 stores were closed, while 5 stores were opened, including locations converted from temporary stores to permanent outlets, bringing the total number of stores to 177 at the end of the interim period. Selling, general and administrative expenses amounted to ¥40,000 million, or 102.5% of the year-earlier level, mainly because the Group continued to secure and train personnel to strengthen store operations, although expenses remained below budget. At the end of the interim period, total assets stood at ¥14,688 million, liabilities at ¥3,885 million and net assets at ¥10,803 million. Cash and cash equivalents at the end of the interim period amounted to ¥5,891,865 thousand.