First-quarter results for the fiscal year ending March 2027 and significant doubt about the Company's ability to continue as a going concern
SEKIDO CO.,LTD. (filing company)
Fashion business, beauty business, leasing division and wholesale division. The beauty business's own brand "hada to kokoro (肌と心)", brands under exclusive import agency agreements and discontinued brands. The fashion business's "GINZA LoveLove" and "&choa!"
Declining sales following the termination of the exclusive import agency agreement for a core brand in the beauty business; delays in launching the Company's own brands and new brands caused by the wind-down of discontinued brands; insufficient sales; branding expenses for the Company's own brands incurred ahead of the resulting revenue; and prolonged international conflicts and rising prices. In addition, the Company breached financial covenants under agreements with certain financial institutions for the creation of security interests by transfer.
Net loss for the quarter of ¥210.618 million (operating loss of ¥191.927 million and ordinary loss of ¥205.005 million)
Cumulative first-quarter period of the fiscal year ending March 2027 (from 21 March 2026 through 20 June 2026)
There is no change to the earnings forecasts for the cumulative second-quarter period or the full fiscal year announced on 7 May 2026.
The Company will focus on securing sales space for the brands it handles and work to make up for the delay in the first quarter. It also plans to actively enter into exclusive import agency agreements for new Korean cosmetics products. By strengthening its business base and stabilizing its financial base, the Company aims to improve results and secure stable funding.
| Item | Details |
|---|---|
| Event name | First-quarter results for the fiscal year ending March 2027 and significant doubt about the Company's ability to continue as a going concern |
| Date of occurrence | 20 June 2026 (end of the first-quarter accounting period) |
| Subject Entity | SEKIDO CO.,LTD. (filing company) |
| Target Locations / Products | Fashion business, beauty business, leasing division and wholesale division. The beauty business's own brand "hada to kokoro (肌と心)", brands under exclusive import agency agreements and discontinued brands. The fashion business's "GINZA LoveLove" and "&choa!" |
| Cause | Declining sales following the termination of the exclusive import agency agreement for a core brand in the beauty business; delays in launching the Company's own brands and new brands caused by the wind-down of discontinued brands; insufficient sales; branding expenses for the Company's own brands incurred ahead of the resulting revenue; and prolonged international conflicts and rising prices. In addition, the Company breached financial covenants under agreements with certain financial institutions for the creation of security interests by transfer. |
| Amount of Impact on Business Performance | Net loss for the quarter of ¥210.618 million (operating loss of ¥191.927 million and ordinary loss of ¥205.005 million) |
| Accounting period in which recognized | Cumulative first-quarter period of the fiscal year ending March 2027 (from 21 March 2026 through 20 June 2026) |
| Impact on Earnings Forecast | There is no change to the earnings forecasts for the cumulative second-quarter period or the full fiscal year announced on 7 May 2026. |
| Outlook | The Company will focus on securing sales space for the brands it handles and work to make up for the delay in the first quarter. It also plans to actively enter into exclusive import agency agreements for new Korean cosmetics products. By strengthening its business base and stabilizing its financial base, the Company aims to improve results and secure stable funding. |
Items this document does not state (16)
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 the beauty business, the wind-down of discontinued brands, which has continued since the previous fiscal year, delayed the launch of the Company's own brands and new brands. In addition to insufficient sales, branding expenses for the Company's own brands were incurred ahead of the resulting revenue. Regarding the significant doubt about the Company's ability to continue as a going concern, the Company cited declining sales following the termination of the exclusive import agency agreement for its core brand, losses for 2 consecutive fiscal years, negative operating cash flow and breaches of financial covenants.