Revenue and profit declined in H1, making a significant recovery in H2 necessary to achieve the FY2026 full-year plan

FY2026-H1 revenue was ¥7,999 million, down 6.8% year on year, while operating profit was ¥203 million, down 45.0%. Ordinary profit was ¥266 million, down 40.3%, and interim net profit attributable to owners of the parent was ¥202 million, down 49.9%. Profit declined more sharply than revenue, with the operating margin falling to approximately 2.5% on a simple calculation, from approximately 4.3% a year earlier, a decline of approximately 1.8 percentage points. The pattern of lower revenue and lower profit was already clear in H1, making a recovery in not only sales but also margins necessary in Q3.

On a quarterly basis, Q1 revenue was ¥4,763 million and operating profit was ¥411 million. Q2, calculated from the H1 cumulative figures, therefore resulted in revenue of approximately ¥3,236 million and an operating loss of approximately ¥208 million. Ordinary profit also fell from ¥426 million in Q1 to ¥266 million for H1, equivalent to an ordinary loss of approximately ¥160 million in Q2 alone. Because the interim earnings report primarily discloses cumulative figures, FY2026-Q3 should be used to confirm standalone July–September revenue and operating profit or loss, and to determine whether the deterioration in Q2 was temporary or carried into the autumn and winter selling season.

The company maintained its full-year forecasts of ¥16,200 million in revenue, ¥350 million in operating profit, ¥450 million in ordinary profit and ¥350 million in net profit attributable to owners of the parent. The annual dividend was also maintained at ¥45. H1 progress was approximately 49.4% for revenue, 58.0% for operating profit, 59.1% for ordinary profit and 57.7% for net profit. On a headline basis, therefore, more than half of full-year profit was secured in H1. However, given the operating loss in Q2 alone, H2 must generate ¥147 million in operating profit, ¥184 million in ordinary profit and ¥148 million in net profit. A recovery from Q3 onward is essential to achieve the earnings plan.

FY2025-H1 revenue was ¥8,585 million and operating profit was ¥369 million, making the current H1 results ¥586 million lower in revenue and ¥166 million lower in operating profit. If the elapsed portion of the fiscal year is simply set at 75%, Q3 cumulative revenue of ¥12,150 million and operating profit of ¥262.5 million would serve as rough progress benchmarks. However, the company is subject to seasonality, so these figures should not be treated as mechanical forecasts. They should be tested against actual sales trends and margins during the autumn and winter selling season.