From our President and CEO Investors

To our shareholders and investors

We would like to express our sincere gratitude to our shareholders and investors for their continued support and consideration.

In the third quarter of the fiscal year ending March 2026, the fall/winter sales season followed a different trajectory than usual as consumers remained cost-conscious due to factors such as inflation, along with impacts from temperature fluctuations and inbound travel. In particular, October and November saw sharp temperature drops due to cold fronts, leading to a solid start to sales of fall/winter merchandise. Additionally, Black Friday in late November also boosted spending, resulting in an earlier sales peak.
In December, however, primarily at urban stores in Japan, a decline in inbound sales from mainland China, combined with warmer-than-usual temperatures, slowed the sales of heavy apparel such as high-loft down jackets. However, sales performance diverged even within the jacket category, with mid-layers such as fleeces, shell jackets, and insulated jackets, items suitable for layering, and Nuptse Jacket—THE NORTH FACE’s classic down jacket—all showing strong growth.

Despite these circumstances, we have been proposing highly functional products while advancing initiatives to enhance in-store customer experience by such means as opening self-operated stores and expanding existing stores. As a result, the cumulative net sales reached 99.472 billion yen (102.7% year-on-year), and the operating profit reached 18.717 billion yen (110.5% year-on-year), achieving revenue and profit growth year-on-year. In addition, the gross profit margin improved from the previous year to 53.5%.
The ordinary profit and the quarterly profit attributable to owners of parent declined year-on-year. The primary factor was a decline in our share of profit from YOUNGONE OUTDOOR Corporation, our affiliate in Korea accounted for under the equity method, which experienced a profit decrease due to foreign exchange fluctuations and cost increases, despite maintaining sales growth. This factor resulted in a decline in consolidated profit, although our domestic operations achieved profit growth.

We will continue to enhance our product planning and merchandising precision in response to climate patterns and demand changes, maximize sales opportunities, and strengthen the sales structure without relying on excessive markdowns. We sincerely ask for your continued understanding and support.