Recovery in existing-store customer traffic is the inflection point for first-half sales and the ¥35.3 billion full-year plan

Revenue in the first quarter of the fiscal year ending March 2027 was ¥7,105,037 thousand (¥7.105 billion), down ¥380,615 thousand from ¥7,485,652 thousand in the prior-year period. Revenue was down 5.1% year on year, with the company attributing the decline in existing-store customer traffic to low temperatures during the launch period for summer apparel and adverse weather, including typhoons. Existing-store customer traffic was 96.5% of the prior-year period, while average spend per customer was 100.8%, indicating that higher spending alone did not offset the decline in traffic.

At the next second-quarter results announcement, the first point to confirm will be whether cumulative revenue exceeds the ¥13.465 billion recorded in the prior-year period. In FY2026-H1, revenue was ¥13.465 billion and the operating loss was ¥2.076 billion, making a recovery in first-half revenue a prerequisite for earnings improvement this fiscal year. Since standalone first-quarter revenue was down 5.1% year on year, the cumulative result will depend on whether customer traffic returns close to 100% in the second quarter alone or whether the increase in average spend expands beyond 100.8%.

The store network also complicates the assessment of sales. In the first quarter, the company opened 4 stores and closed 9, leaving a total of 358 stores. This is 5 fewer than the 363 stores at 31 March 2026, so sales trends need to be assessed after adjusting not only for existing-store customer traffic and average spend, but also for the decline in the store count caused by closures. The only reportable segment is the apparel retailing business, and the current source does not disclose revenue or profit by brand, business format or region. Accordingly, the contributions of individual formats such as P.S.FA and フォーエル cannot be tested from the earnings summary alone.

Actual revenue in FY2026 was approximately ¥35.213 billion, while the FY2027 full-year revenue forecast is ¥35.30 billion, implying growth of only about 0.2%. Simply subtracting first-quarter actual revenue from the full-year forecast leaves approximately ¥28.195 billion of revenue required over the remaining 3 quarters, but apparel retailing is seasonal, so this should not be treated as a mechanical progress benchmark. In the second quarter, whether the company can disclose all 4 items simultaneously—cumulative revenue, existing-store customer traffic, average spend per customer and store count—will provide a basis for assessing the feasibility of the ¥35.3 billion plan.