Revenue continues to decline, while the operating deficit remains elevated

Consolidated revenue in FY2027-H1 was ¥851 million, down ¥67 million, or 7.3%, from ¥918 million in the same period of the previous year. The operating loss was ¥176 million, worsening by ¥4 million from the ¥172 million loss recorded in the same period of the previous year. Revenue contracted while the operating deficit widened, indicating that, at this stage, weaker demand has not been fully offset by reductions in fixed and variable costs.

Over the past 3 interim periods, revenue declined steadily from ¥998 million in FY2025-H1 to ¥918 million in FY2026-H1 and ¥851 million in FY2027-H1. Operating losses were ¥234 million, ¥172 million and ¥176 million, respectively, improving temporarily in FY2026-H1 before the improvement stalled in FY2027-H1. Meanwhile, ordinary losses were ¥230 million, ¥23 million and ¥157 million, while interim net losses attributable to owners of the parent were ¥27 million, ¥165 million and ¥80 million, respectively, showing a divergence between operating performance and ordinary and net income.

The company attributes the difficult demand environment to prolonged inflation, consumers’ tendency to economise and cautious spending among its core customer base of middle-aged women. It also indicated the presence of inbound demand, but the FY2027-H1 disclosure contained no figures directly measuring changes in demand, such as customer traffic, same-store sales, average selling prices or sales by channel, including e-commerce. Accordingly, based on the current disclosures alone, it is difficult to determine whether the revenue decline reflects the overall market or changes in the customer base and store composition.

In the next results, the first points to check will be whether revenue remains at or above ¥851 million and whether the year-on-year decline narrows from 7.3%. For the operating loss, the short-term benchmark for improvement will be whether it can return to at least ¥172 million or less, the level recorded in the same period of the previous year. In addition, the extent of the difference between operating income and ordinary income, and whether new disclosures are provided for customer traffic, same-store sales and sales by channel, will help assess the sustainability of an operating recovery.