Financial Highlights

	2021/3	2022/3	2023/3	2024/3	2025/3
Net Sales (Millions of Yen)	17,299	24,609	28,218	28,697	28,609
Operating Income (Millions of Yen)	△2,527	△1,771	△481	△442	△64
Ordinary Income (Millions of Yen)	△2,204	△1,615	△378	△336	△233
Net Income (Millions of Yen)	△4,513	△3,544	6,757	291	△2,483
Net Income per Share (Yen)	△138.62	△108.37	207.46	10.22	△91.65
Net Assets per Share (Yen)	291.23	209.89	442.30	511.82	419.23
Net Sales by Business (Millions of Yen)
Clothing Business	14,263	21,886	25,363	25,741	25,298
Real Estate and Leasing	3,084	2,774	2,895	2,998	3,310
Consolidated Adjustment	△48	△52	△41	△41	△43
Total	17,299	24,609	28,218	28,697	28,609

Summary of Business Operating Results by Business (consolidated)

Fiscal year ended March 2025

Clothing Business

In terms of retail in Japan, our original brand NEWYORKER experienced a reduction in earnings compared to the previous period, which can be attributed to fewer items being sold at regular price due to lingering high temperatures as we move into autumn.
Our licensed brand Brooks Brothers was involved in several projects related to product development and collaborations aimed at the Japanese market, which resulted in increased sales at existing store locations, with benefits also seen from the establishment of new stores and healthy inbound demand. These effects led to increased revenue and profits compared to the previous fiscal period.
As for our retail operations in China, we did see larger losses due to sluggish consumer spending, which can be attributed to concerns about the trajectory of the Chinese economy. Even so, we completed the transfer of our full investment holdings in January 2025.
Turning to our manufacturing division, shipping volumes increased from our manufacturing subsidiary in China under direction from our retail division in Japan. On the other hand, the effects of orders from transactions that were moved forward due to COVID-19 recovery resulted in sharply decreased sales at our apparel materials manufacturing subsidiary in Italy.
As a result of the above, the segment achieved sales of JPY 25,298 million (a decrease of 1.7% compared to the previous fiscal period) and experienced losses of JPY 37 million (compared to operating losses of JPY 36 million during the previous fiscal period).
With respect to our apparel materials manufacturing subsidiary in Italy and our retail division in Japan, impairment losses on fixed assets of JPY 2,927 million were recorded as special losses for the consolidated fiscal year under review. For details, see “Notification of Accounting for Extraordinary Losses and Disparity Between Projected and Actual Results”, which was released today.

Real Estate and Leasing Business

The Dynacity commercial complex in Odawara saw increased revenue from leasing due to the opening of its West Annex addition in April 2024. Moreover, increased foot traffic from the opening of this addition positively affected Dynacity as a whole, resulting in increased revenue and profits compared to the previous fiscal period.
Regarding the leasing of office space, the recomposition of our assets related to the sale of our headquarters building in March 2023 was temporarily completed during the previous fiscal period, resulting in leasing revenues coming in throughout the year that led to significantly increased revenue and profits.
As a result of the above, the segment achieved sales of JPY 3,310 million (an increase of 12.0% compared to the previous fiscal period) and profits of JPY 990 million (an increase of 110.6% compared to the previous fiscal period).

Full-company divisions

With respect to full-company revenue and full-company costs that are not allocated to one of the reported segments, the JPY 135 million of special expenses (primarily costs related to activist shareholders) for the regular shareholders meeting held in June 2024 was accounted for as selling, general and administrative expenses. These are costs that occurred under extraordinary circumstances during the consolidated fiscal year under review, and are not expected to occur during the next consolidated fiscal year.

Financial Situation (consolidated)

Fiscal year ended March 2025

Total Assets

While we posted increases in cash on hand and deposits, we saw decreases in buildings, structures, and land holdings. This resulted in total assets of JPY 37,395 million, a decrease of JPY 3,486 million compared to the end of the previous fiscal period.

Total Liabilities

Total liabilities were JPY 25.2 billion, a decrease of JPY 1,035 million compared to the end of the previous fiscal period. This change was, due to factors such as decreases in deferred tax liabilities, as well as in short- and long-term loans payable and deposits, despite increases in asset retirement obligations.

Net Assets

As a result of the accounting of net losses for the current fiscal period that can be attributed to parent-company shareholders due to increases in impairment losses and payment expenses borne, accumulated earnings decreased. Net assets were JPY 12,195 million, a decrease of JPY 2,451 million compared to the previous fiscal period, with a capital-to-asset ratio of 30.5% (down from 33.7% at the end of the previous fiscal period).