Verifying the shift from an H1 loss to a full-year profit in Q3

Revenue for the six months from January through June 2026 was ¥2,223.567 million, down 5.8% year on year. Operating results turned from a ¥36.847 million profit in the same period of the previous year to a ¥136.039 million operating loss. Ordinary results were also a loss of ¥135.887 million, while final results were a loss of ¥102.135 million. Progress against the full-year revenue forecast was 44.8%, below the 50% implied by a simple halfway point of the year.

Q2 standalone revenue was ¥1,111 million and operating loss was ¥92 million. Most of the cumulative H1 operating loss of ¥136 million was incurred in Q2, indicating that spending on domestic retail expansion and new initiatives is weighing on earnings in the short term. In Q3, initial signs of recovery will be whether standalone quarterly revenue exceeds ¥1,111 million and whether the operating loss narrows from ¥92 million.

To achieve the full-year operating profit forecast of ¥115 million, the company will need operating profit of approximately ¥251.039 million in the second half, assuming the H1 operating loss of ¥136.039 million. It will also need to generate ¥2,741.433 million of revenue in the second half, calculated by subtracting H1 actual revenue of ¥2,223.567 million from the full-year forecast of ¥4,965 million. This represents approximately 55.2% of annual revenue and implies a second-half-weighted achievement scenario.

The company did not revise its full-year forecasts at the interim results announcement and has maintained its scenario of a recovery to an operating profit of ¥115 million. However, it has not disclosed the monthly or channel-specific assumptions for second-half revenue and profit required to achieve the full-year forecasts, or the contribution attributable to seasonality. In Q3, cumulative revenue progress, standalone Q3 operating results, whether the full-year forecasts are maintained or revised, and the specific drivers of the second-half recovery will be reviewed.