As you are well aware, the current fiscal year ending February 2026 is the first year of the Medium-Term Business Plan announced in April 2025.

Now, only two months remain in this fiscal year. In the first half of the fiscal year, we were affected by irregular weather conditions, including low temperatures in early spring, a sudden rise in temperatures thereafter, and prolonged record-breaking heat. Additionally, the uncertainty about the outlook for international and domestic politics and economics and the persistent inflation led to a decline in consumer sentiment, significantly impacting the high-priced goods market and causing continued sluggishness in department stores, our main sales channel. In the second half, the start of the autumn-winter sales season was delayed due to high temperatures continuing until mid-October, resulting in continued struggles. However, from late October, as temperatures dropped, autumn and winter items suddenly gained full momentum, and sales in November significantly exceeded the previous year. Although the market slightly slowed down in December, we are determined to achieve the revised plan by making a concerted effort to recover in the remaining two months.

Meanwhile, for the next fiscal year ending February 2027, starting in March this year, we will actively pursue initiatives to ensure the company is on a growth trajectory in line with the policies outlined in the Medium-Term Business Plan. This includes expanding existing businesses through organic growth, developing new businesses and brands, expanding sales channels beyond department stores, securing new business rights through acquisitions, and expanding overseas.

We renew our commitment to remain vigilant and united as a company in striving to achieve our goals. We kindly ask for your continued support.