Key points from the latest financial results Investors

Inventory temporarily increased to 119% of the previous fiscal year due to the warm winter in the third quarter, but converged to 106% by the end of the fiscal year ending March 2025, landing within the planned range. In terms of finances, the equity ratio is 73.2% and the D/E ratio is 0.003, and the company continues to maintain an extremely sound financial position. With a capital structure that takes capital costs into consideration, the company plans to continue to pursue both growth investment and return.

Consolidated balance sheet

	FY22.3	FY23.3	FY24.3	FY25.3
ROE	24.7%	29.3%	27.0%	23.2%
Capital adequacy ratio	63.9%	67.4%	70.9%	73.2%
Interest-bearing debt	4,188 million yen	2,585 million yen	1,372 million yen	354 million yen
D/E ratio (times)	0.07	0.03	0.01	0.003

The sales loss rate remained stable at 1.4% throughout the year, and the sophistication of supply and demand management through order flow meetings contributed to structural improvement.

Sales for the fiscal ending March 2026 are expected to grow by 106.2% year on year. As some brands are discontinued, we will reallocate resources to key brands and review our selling and administrative expense structure, so we expect to be able to maintain the operating profit margin and gross profit margin at roughly the same level as the previous fiscal year. The fiscal year ending March 2026 will be a year in which we can confirm our progress in terms of profits, as we enter the full-scale operation phase of our business portfolio after restructuring.

1. Gross profit margin is planned to be 52.7%, with pricing policy and supply and demand accuracy being key.
   We are aiming for a gross profit margin of 52.7% (up 0.6 points from the previous fiscal year) for the fiscal year ending March 2026, and will work to steadily reverse the profit margin by improving the accuracy of product launches, improving inventory turnover, and continuing our pricing policy. To improve gross profit margins, it is essential to further strengthen the accuracy of supply and demand management, such as thoroughly maintaining prices, determining the appropriate timing for inventory launches, and increasing the list price sales ratio. In particular, this is a time when the continuity of the improvement trend in the fourth quarter of the fiscal year ending March 2025 will be questioned, and we intend to strive to improve profitability by accumulating measures.
2. Temporary costs will disappear and fall, and the structure will purely reflect the profitability of the core business.
   One-time expenses such as J-ESOP (3 billion yen) recorded in the fiscal year ending March 2025 are not expected to occur from this fiscal year onwards, but we plan to improve the accuracy of advertising expenses and other expenses and promote more effective expense execution. Regarding shareholder returns, in the fiscal year ending March 2026, we plan to increase the annual dividend for the 15th consecutive fiscal year to 174 yen (including a commemorative dividend of 10 yen). The dividend payout ratio is maintained at 30.7% and the total return ratio is maintained at 40% or more, and stable execution is being carried out under a flexible return policy. Therefore, this fiscal year will be a year in which execution from the perspective of not only the absolute amount of profit but also return on investment and capital efficiency will be important, and the effectiveness of the recovery phase of growth investment will be questioned.

From “temperature dependence” to “action-based,” the evolution of the SPA model has begun.

The core of the mid-term management plan, “breaking away from temperature dependence,” has progressed steadily throughout the fiscal year ending March 2025. The results of behavior-based consumption creation are beginning to appear, such as the leveling out of sales timing, increasing the proportion of limited-edition products sold at list price, and capturing nighttime demand. In addition, the essential evolution of the actual demand-based business model that we have been working on for over 20 years is beginning to take shape, such as inventory liquidation, modular store design, and improved supply and demand accuracy through order liquidity meetings.

1. Overseas strategy shifts to “wide-area expansion,” with bases established in China, Korea, Europe and the US.
   The original brand Goldwin has expanded its store openings in mainland China to five stores, and is expected to achieve sales of 6.4 billion yen (145.5% year-on-year) in the fiscal year ending March 2026. In addition, the brand’s expansion in Korea is scheduled to open a flagship store within the year after a pop-up expansion in a highly sensitive area. In Europe and the US, the company has begun full-scale consideration of opening flagship stores in New York and London, and is making progress in establishing bases that will serve as the foundation for the mid-term goal of a 10% overseas sales ratio.

Store opening plans for the “Goldwin” brand in each region.

2. The experience business is now fully underway, combining things and experiences.
   This fiscal year, we have acquired Alpine Tour Services, a travel tour company, as a subsidiary, and have begun providing value through the trinity of “products,” “stores,” and “experiences.” We are making progress in our efforts to incorporate our brand philosophy into “actions,” such as mountain climbing and nature experiences, and our experience business is also progressing in line with our purpose of “leading people to challenges and expanding the possibilities of people and nature.” This is not just a diversification of our business, but a core initiative that embodies the idea of “PLAY EARTH 2030,” so please keep an eye on how it will expand and deepen in the future.

Effects of tour business initiatives