FY2026/8 Q1

Summary of Financial Results

Executive Summary: Despite the impact from the suspension of online store in Japan, operating revenue and all levels of profit exceeded expectations.

Operating revenue increased by 15.4% YoY to 228.2 billion yen, as LFL store sales were strong in overseas business and the number of stores in Japan and overseas increased, despite the negative impact from the suspension of online store in Japan.
Gross profit margin improved by 1.1pp YoY to 52.6%, primarily due to product cost reductions achieved through strengthening in-house production.
SG&A ratio decreased by 0.3pp YoY to 40.2%, driven by a lower SG&A ratio due to sales growth in overseas business, and the deferral of some SG&A expenses.
Operating profit increased by 29.3% YoY to 28.3 billion yen. Operating profit margin improved by 1.3pp YoY to 12.4%.
Net income attributable to owners of parent increased by 47.4% YoY to 22.0 billion yen, including an extraordinary gain on the sale of cross-shareholdings (2.3 billion yen). All cross-shareholdings owned were sold.

Operating revenue was 133.2 billion yen (+9.1% YoY) and operating profit was 18.3 billion yen (+22.1% YoY), increase in revenue and profit. Operating profit margin improved by 1.5pp YoY to 13.8%.
Despite the negative impact from the suspension of online store starting mid-October, strong performance during MUJI Week (conducted exclusively in stores) drove LFL store + EC sales to 100.3% YoY in Q1. (LFL store sales approx. 107% YoY, EC sales approx. 40% YoY).
LFL store + EC sales exceeded the previous year in Apparel and Food, while Household goods fell below the previous year due to the significant impact of the online store suspension. Store sales exceeded the previous year in all categories.

Operating revenue was 67.9 billion yen (+25.7% YoY) and operating profit was 14.2 billion yen (+27.9% YoY), significant increase in revenue and profit. Gross profit margin declined due to the negative impact from foreign exchange, despite improvements in production cost ratio and restrained price reductions. SG&A expenses ratio improved alongside sales growth, leading to 0.4pp YoY increase in operating profit margin to 20.9%.
LFL store + EC sales in Q1 were 118.4% YoY, driven by sales growth in Household goods and Food.
Mainland China business saw significant revenue and profit growth. Household goods, including skincare products, and Food continued to drive sales. Sales promotions such as W11 also performed well, with LFL store + EC sales in Q1 reaching 118.3% YoY.
Taiwan business performed well, particularly during MUJI Week, and strengthened locally developed Food products also contributed to increased revenue and profit.
Both revenue and profit increased in Hong Kong business, benefiting from pricing control and the impact of store renovations.
Both revenue and profit increased in Korea business, with significant growth across Apparel, Household goods and Food, driven by effective marketing.

Operating revenue was 14.4 billion yen (+33.4% YoY) and operating profit was 18.0 billion yen (+59.3% YoY), resulting in significant increases in both revenue and profit. On a local accounting basis, however, operating profit declined due to store opening and incremental personnel expenses. Thanks to improved SG&A ratio driven by sales growth, operating profit margin improved by 2.0pp YoY to 12.5%.
LFL store + EC sales in Q1 were 109.4% YoY. Strong sales growth in Apparel was driven by maintaining ample in-store inventory of best-selling products. For Household goods, fabrics, skincare, and fragrance products performed well. Food sales also grew, supported by expanded product offerings.
LFL store + EC sales for Thailand business increased double-digit YoY, driven by strong sales in Apparel. Locally exclusive Food items also performed well.
LFL store + EC sales for Malaysia business also increased in addition to expanded store count through new openings.
Singapore business executed business reforms, including pricing control. Reduction of discounts impacted customer traffic, resulting in decrease of LFL store + EC sales YoY.
Vietnam business saw strong performance across Apparel, Household goods, and Food, with LFL store + EC sales growing at a double-digit YoY. The EC platform, launched last fiscal year, also performed well.
Flagship stores, among the largest in Southeast Asia, opened in late November for both Thailand and Vietnam businesses.

Operating revenue was 12.4 billion yen (+17.1% YoY) and operating profit was 2.8 billion yen (+25.3% YoY), resulting in significant growth for both revenue and profit. Profitability was secured through improved production cost ratio and restrained price reductions, while gross profit margin declined due to the negative impact from foreign exchange. However, operating profit margin improved by 1.5pp YoY to 22.6% due to improvement in SG&A expense ratio accompanying sales growth.
LFL store + EC sales in Q1 were 111.2% YoY. Black Friday sales promotion also performed well.
In Europe business, both revenue and profit rose as LFL store + EC sales posted double-digit growth YoY. Sales growth was driven by the early launch of the autumn/winter season for Apparel, and securing inventory of popular items. Furthermore, EC sales grew significantly following the integration of EC platforms in Europe during FY25/8.
In North America business, both revenue and profit increased as LFL store + EC sales had double-digit growth YoY. EC sales in particular, grew significantly.

In Japan business, the number of stores increased by 18 to 701 as we opened new stores mainly in suburbs.
In overseas business, the number of stores increased by 13 to 742 as we opened new stores mainly in East Asia business and Southeast Asia business.
In mainland China business, we promoted scrap and build strategy and the number of stores increased by 4 to 426. We proceeded with closing low-revenue stores and opened new stores with a larger sales floor space, in addition to implementing small-scale renovations to improve sales per store.
In Southeast Asia business, the number of stores increased by 6 to 130. We opened flagship stores in Thailand and Vietnam.
In Europe and North America business, we resumed opening new stores in December 2025.

In Q1, operating revenue and all levels of profit made strong progress against the full-year plan.
Japan business faced challenging sales in December due to warm winter and other factors. The carryover of SG&A expenses from the previous quarter will also negatively impact operating profit in Q2.
In overseas business, sales in East Asia business fell short of expectations due to warm winter in December, but showed signs of recovery through the year-end and New Year sales.
Global SG&A expenses are expected to be inline with the full-year plan.
The second half and full-year plans remained unchanged from the initial forecast, projecting increased revenue and profit YoY.
The exchange rate assumptions also remain unchanged from the initial forecast.