Operating profit is ahead of plan from the first quarter, but the first half will confirm whether the full-year profit growth plan remains achievable

In the first quarter of the fiscal year ending February 2027, net sales were ¥80,318 million, up 3.7% year on year, operating profit was ¥7,875 million, up 40.5%, and ordinary profit was ¥8,047 million, up 48.4%. The operating margin rose to 9.8%, and operating profit reached 45.8% of the full-year forecast of ¥17,200 million. Progress against the full-year net sales forecast of ¥314,000 million was 25.6%, meaning that profit is significantly ahead of sales. This will be the first point to confirm in the next results.

Apparel and sundries accounted for most of the profit. Sales in this business were ¥76,451 million, and segment profit was ¥8,122 million, up 49.2% year on year. By contrast, Other (food and beverage) generated sales of ¥3,866 million and a segment loss of ¥74 million. Consolidated profit growth depends on improved gross margins and control of selling, general and administrative expenses in apparel and sundries. With the food and beverage business still loss-making, it will be important to see whether total operating profit continues to increase in the first half.

Quarterly net income attributable to owners of the parent was ¥3,908 million, down 10.6% year on year. The company recorded ¥1,301 million in extraordinary losses, comprising a special contribution payment of ¥1,230 million and store impairment losses of ¥71 million, so the strong operating performance was not fully reflected in net income. The company has left unchanged its full-year forecasts of net sales of ¥314,000 million, operating profit of ¥17,200 million, ordinary profit of ¥17,200 million and net income of ¥10,500 million, but it has not disclosed explicit progress rates or the profit required over the remaining period for the first half. The next results should be checked for the standalone second-quarter operating margin, first-half progress against the full-year forecasts and growth in pretax profit excluding extraordinary losses.