FY2027-Q1 will be the quarter for testing whether underlying demand is recovering, excluding the reversal of disaster-preparedness demand.

FY2026-Q1 revenue was ¥8,253 million, down 4.5% from ¥8,646 million in the prior-year period. Operating profit also fell 43.5%, from ¥230 million in the prior-year period to ¥129 million, declining more than revenue. The company explained that, in addition to the reversal of a sharp increase in disaster-preparedness product sales in the prior-year period, driven by earthquakes and typhoons, higher prices led consumers to hold back on purchases, reducing customer visits and revenue.

In FY2026-H1, revenue was ¥17,466 million, customer visits across all stores were 98.3% of the prior-year period, and average spend per customer was 100.0%. As of the first half, average spend per customer provided support, while customer numbers remained below the prior-year level. For the full year, revenue was ¥35,251 million and operating profit was ¥1,274 million, with revenue up 1.0% and operating profit up 3.1% from the prior fiscal year. However, these results include the recovery in the second half and do not necessarily mean that the recovery had become established from the first quarter.

The next results will be compared with the period after the reversal of the previous year's exceptional disaster-preparedness demand has run its course, so customer visits and average spend per customer need to be examined separately, not just revenue. Even if revenue exceeds 100%, customer numbers below 100% would leave open the possibility that the recovery depends on price increases or a higher mix of higher-priced products. Conversely, if both customer numbers and average spend per customer exceed the prior-year levels and operating profit exceeds ¥129 million, the view that underlying demand is returning while absorbing higher prices and the reversal of exceptional demand will gain support.