Summary of Financial Results

Executive Summary: Operating revenue and profits at all levels reached record highs. Operating gross profit margin improved, and OP margin exceeded 10%.

• Operating revenue increased 14.8% YoY to 438.5 billion yen, driven by an increase in the number of stores in both Japan and overseas businesses, as well as significant growth in LFL store sales in overseas business.
• Operating gross profit margin improved by 1.3pp YoY to 52.4%, due to cost reduction effects achieved through strengthening in-house production and an improvement in discount rate.
• SG&A/revenue ratio deteriorated by 0.5pp YoY to 42.1%, primarily due to an increase in personnel expenses and the impact of the suspension of EC sales in the Japan business.
• Operating profit increased 24.8% YoY to 45.0 billion yen. OP margin improved by 0.8pp YoY to 10.3%.
• Net income attributable to owners of the parent increased 34.5% YoY to 34.2 billion yen, due to gains on the sale of cross-shareholdings and foreign exchange gains.

Segment Results for FY2026/8 (6 months)

Japan business: Seasonal promotions offset the impact of the suspension of online sales, resulting in increased revenue and profit.

• Operating revenue was 244.3 billion yen (108.1% YoY) and operating profit was 27.4 billion yen (114.2% YoY), resulting in increased revenue and profit.
• Operating revenue increased as the impact of the temporary suspension of EC sales was offset by promotional campaigns such as MUJI Week and MUJI Good Price Festival. LFL store + EC sales in H1 were 100.0% YoY (LFL store sales approx. 104% YoY, EC sales approx. 60% YoY).
• Although SG&A/revenue ratio deteriorated, OP margin improved by 0.6pp YoY to 11.3%, driven by improvement in gross profit margin.

East Asia business: In addition to seasonal promotions, sales of Household goods increased, resulting in increased revenue and profit.

• Operating revenue was 136.0 billion yen (123.3% YoY) and operating profit was 27.5 billion yen (129.0% YoY), resulting in increased revenue and profit.
• Operating revenue increased due to seasonal promotions and strong LFL store sales. LFL store + EC sales in H1 were 113.2% YoY.
• OP margin improved by 0.9pp YoY to 20.3%, driven by improvement in gross profit margin from restrained discounting and optimized product mix, as well as a decline in SG&A/revenue ratio accompanying sales growth.
• Mainland China business posted increased revenue and profit, supported by strong sales during W11 and Lunar New Year, as well as growth in Household goods and Food driven by local MD. LFL store + EC sales in H1 were 113.2% YoY.
• Taiwan business recorded increased revenue and profit due to the effect of Lunar New Year campaigns and growth in Health & Beauty sales.
• Hong Kong business achieved increased revenue and profit, led by sales of Household goods such as Health & Beauty and Housewares.
• Korea business achieved increased revenue and profit as customer traffic increased through strengthened marketing, with sales of Apparel, Household goods and Food all showing significant growth.

Southeast Asia and Oceania business: Strengthened management structure drove LFL store sales growth, resulting in significant revenue and profit growth together with new store openings.

• Operating revenue was 33.1 billion yen (135.4% YoY) and operating profit was 4.8 billion yen (147.0% YoY).
• Under a strengthened management structure, store environment improvements were accelerated and sales plans were reviewed, resulting in LFL store + EC sales of 108.7% YoY. New store openings also contributed to increased operating revenue.
• Operating profit increased 47.0% YoY, and OP margin improved to 14.7%, reflecting improvement in SG&A/revenue ratio accompanying sales growth.
• Thailand business posted double-digit growth YoY in LFL store + EC sales, with strong sales of Apparel and Food. The flagship store opened in November also contributed to sales.
• Malaysia business posted double-digit growth YoY in LFL store + EC sales, supported by strong sales of Health & Beauty in addition to Apparel.
• Singapore business saw LFL store + EC sales decline YoY due to restrained discounting and price revisions, while profitability improved steadily.
• Vietnam business posted double-digit growth YoY in LFL store + EC sales through securing inventory of best-selling products and strengthening marketing centered on flagship stores. The flagship store opened in November and the in-house EC launched in the previous fiscal year also performed well.

Europe and North America business: LFL store sales increased in both Europe business and North America business, resulting in increased revenue and profit.

• Operating revenue was 25.0 billion yen (117.9% YoY) and operating profit was 3.9 billion yen (109.7% YoY).
• Operating revenue increased at a double-digit rate YoY, led by LFL store sales in Europe business. LFL store + EC sales in H1 were 110.4% YoY.
• Operating profit increased by approximately 10% YoY. While OP margin improved on a local accounting basis due to restrained discounting, the impact from FX diminished, resulting in an adjusted segment OP margin of 15.9% (-1.2pp YoY).
• Europe business achieved increased revenue and profit, supported by expansion of core Apparel inventory and a broader lineup of Household goods. EC sales grew significantly following the integration of EC platforms in the previous fiscal year.
• North America business achieved increased revenue and profit on a local accounting basis, while profit declined due to a reduced FX impact. Sales remained steady despite the impact of a severe cold wave, while SG&A/revenue ratio deteriorated due to logistics center transfer and the resumption of store openings.

Number of Stores: 1,460 (Japan: 700, Overseas: 760)

• In Japan business, the company promoted the opening of highly profitable stores mainly in suburban areas, increasing the number of stores by 17 to 700.
• Overseas business increased the number of stores by 31 to 760.
• East Asia business recorded a net increase of 23 stores to 580, with store openings in mainland China business, Korea business and Taiwan business.
• In Mainland China business, a scrap-and-build strategy was promoted, resulting in a net increase of 15 stores to 437, including the renovation and reopening of the Chengdu flagship store (approximately 800 tsubo).
• Southeast Asia and Oceania business recorded a net increase of 7 stores to 131, including flagship store openings in the Thailand and Vietnam businesses, as well as new store openings in Malaysia and the Philippines.
• Europe and North America business resumed store openings in North America, resulting in a net increase of 1 store to 49.

FY26/8 Full-Year Consolidated Plan: Upward revision and dividend increase. Operating profit and OP margin are expected to be achieved ahead of schedule under the 3-year rolling plan.

• Operating revenue has been revised upward by 27.0 billion yen from the initial plan to 887.0 billion yen (113.0% YoY), and operating profit has been revised upward by 10.0 billion yen to 89.0 billion yen (120.5% YoY). OP margin is expected to be 10.0%.
• The full-year outlook has been revised upward to reflect progress in H1 results and a revision of FX assumptions for H2.
• Operating revenue has been raised mainly driven by overseas business.
• Operating profit corresponds to the forecast for FY27/8 under the 3-year rolling plan.
• OP margin is expected to reach 10.0%, driven mainly by improvement in gross profit margin.
• Net income attributable to owners of the parent is expected to be 62.0 billion yen, and ROE is expected to be 17.1%.
• In H2, both operating revenue and operating profit are expected to post double-digit growth YoY. At this time, we expect the impact related to the situation in the Middle East to be limited, but we will continue to monitor the situation closely.
• Annual dividend per share is planned at 32 yen, an increase of 4 yen from the previous forecast of 28 yen, representing a 7 yen YoY increase.

Progress of the 8 growth drivers for global growth

• Store expansion
  • A flagship store is scheduled to open in Paris in FY27/8.
  • In North America business, the opening of four mid- to large-sized stores has been decided.
  • Store openings are being accelerated in Korea business.

• Enhancement of product development capabilities
  • Expansion of product lineup is being promoted, starting with Health & Beauty.
  • Overseas Household goods coverage is expected to reach 70% in 26SS, and is expected to be completed at 80% in 26AW.
  • Development of local MD is being initiated globally, mainly in Health & Beauty and Food, incorporating local needs.

• Strengthen OMO
  • Sales channel strategies are being reviewed globally, and online sales are being strengthened. Overseas growth potential remains significant.
  • In line with high growth channel expansion, optimization and centralization of logistics and inventories are being promoted.

• Deployment of operations
  • Leading best practices implemented at MUJI operations worldwide are being mutually deployed across regions.
  • In addition to sales operations, initiatives are being shared broadly across product, marketing, IT and VMD functions.

• Improving operational efficiency/ SCM transformation
  • Initiatives have been launched under the Productivity Improvement Committee, primarily focusing on head office operations.
  • A PDCA cycle is planned on a two-year basis, aiming to implement sustainable and repeatable improvements rather than short-term measures.
  • Priority themes for the current cycle include IT investment, labor productivity, product costs and general expenses.
  • The effects of these initiatives will be reflected on an ongoing basis in the 3-year rolling plan, with the goal of achieving an OP margin of 12% or higher at an early stage.

• ESG as a core business
  • The MUJI concept has been clarified, and global branding initiatives have been launched.
  • Activities of the Social Good Division based on the philosophy of People-Centered Philosophy for the Common Good are being strengthened.
  • Highly profitable initiatives, such as ReMUJI activities led by the Circularity Business Division, are being expanded.