The shoes business has been unable to offset the decline in volume despite higher unit prices, making the continuation of the sales decline the key focus.

Shoes business sales in FY2026-H1 were ¥2,171 million, down 7.6% year on year. Operating results were also an operating loss of ¥30 million. Company-wide sales rose 2.1% year on year because higher real estate sales offset the decline in the shoes business, rather than because the shoes business recovered. Accordingly, in FY2026-Q3 it will be necessary to assess not only company-wide sales but also the shoes business's sales and operating results separately.

By category, women's shoes generated ¥1,090 million, men's shoes ¥484 million, and rubber footwear, sneakers and Other ¥597 million. Women's shoe sales fell 7.8% year on year, while men's shoe sales fell 24.9%, with the decline particularly pronounced in men's shoes. The company says interest in sports-casual products and hands-free shoes is increasing, but sales performance continues to vary across conventional product groups and brands.

For women's shoes, selling prices rose 4.5% year on year, while the number of pairs sold fell 11.8%. For men's shoes, selling prices rose 1.9%, but the number of pairs sold fell 26.3%. Higher unit prices following price revisions have not offset the decline in volume, resulting in sales declines of 7.8% for women's shoes and 24.9% for men's shoes. In Q3, it will be important to assess customer acceptance after the price increases, the extent of the decline in pairs sold, and the effect of shifting toward sports-casual and convenience-oriented products.

Previous disclosures have explained which private-label products, ODM products and licensed brands performed well or poorly, but have not disclosed operating profit by category or gross profit by brand. They have also not disclosed the amounts of orders received or the order backlog. In Q3, we will continue to monitor sales of women's shoes, men's shoes, rubber footwear, sneakers and Other, as well as pairs sold, average selling prices, inventory write-downs and changes by major brand.