Consolidated Financial Results
for the Nine Months Ended November 30, 2023
[Japanese GAAP]
January 10, 2024
Company name: PAL GROUP Holdings CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2726
URL: http://www.palgroup.holdings/
Representative: Ryuta Inoue, President and Representative Director
Contact: Yasuyuki Konishi, Executive Officer and General Manager of Finance and Accounting Division
Phone: +81-6-6227-0308
Scheduled date of filing quarterly securities report: January 15, 2024
Scheduled date of commencing dividend payments: —Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended November 30, 2023 (March 1, 2023 to November
30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
million yen%million yen%million yen%million yen

Nine months ended
142,545
18.115,548
25.5
15,76125.1
10,353
November 30, 2023
Nine months ended
120,672—
12,387 119.9
12,596 120.2
7,993
November 30, 2022
(Note) Comprehensive income: Nine months ended November 30, 2023: ¥10,360 million [29.9%]
Nine months ended November 30, 2022: ¥7,973 million [116.2%]
Basic earnings per
share

Diluted earnings per
shareyenyen%

29.5
117.2

Nine months ended
118.55—
November 30, 2023
Nine months ended
90.99—
November 30, 2022
(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,March 31, 2020) and other standards from the beginning of the three months ended May 31, 2022.
Therefore, the change in net sales for the nine months ended November 30, 2022 from the previous
corresponding period is not presented.
(Note) The Company conducted a stock split on September 1, 2023 at a ratio of two shares for one share ofcommon stock. Accordingly, basic earnings per share are calculated assuming that the stock split took
place at the beginning of the fiscal year ended February 28, 2023.
(2) Consolidated Financial PositionTotal assets
million yen

Net assets
million yen

As of November 30,128,926
60,7602023
As of February 28,
112,510
55,191
2023(Reference) Equity: As of November 30, 2023: ¥60,760 million
As of February 28, 2023: ¥55,182 million

Equity ratio
%

47.1
49.0

2. Dividends
1st quarter-end

Annual dividends
2nd quarter-end 3rd quarter-end

yen

yen

Year-end

yen

Total
yen

yen

Fiscal year ended
—
0.00
—
75.00
75.00
February 28, 2023
Fiscal year ending—
0.00—
February 29, 2024
Fiscal year ending
February 29, 2024
50.00
50.00
(Forecast)(Note) Revision of dividend forecast: Yes(Note) The Company conducted a stock split on September 1, 2023 at a ratio of two shares for one share ofcommon stock. The actual dividend amount before the stock split is stated for the fiscal year endedFebruary 28, 2023. The year-end dividend forecast for the fiscal year ending February 29, 2024 reflects
the stock split.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 toFebruary 29, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parentper share
million yen%million yen%million yen%million yen%

Full year
184,270 12.0
18,97019.9
19,140 19.2
12,45025.1
142.76(Note) Revision of consolidated financial results forecast: No(Note) The Company conducted a stock split on September 1, 2023 at a ratio of two shares for one share ofcommon stock. Accordingly, the forecast of basic earnings per share for the fiscal year ending February
29, 2024 is stated taking into account the impact of the stock split.

yen* Notes(1) Changes in significant subsidiaries during the period under review: No(2) Adoption of special accounting methods for preparing quarterly consolidated financial statement: No(3) Changes in accounting policies, changes in accounting estimates and corrections of errors
1) Changes in accounting policies due to the revision of accounting standards: No2) Any changes other than 1) above: No
3) Changes in accounting estimates: No4) Corrections of errors: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of November 30, 2023
92,544,000 shares
As of February 28, 2023
92,544,000 shares2) Total number of treasury shares at the end of the period:
As of November 30, 2023
5,720,704 shares
As of February 28, 2023
4,693,828 shares
3) Average number of shares during the period:
Nine months ended November 30, 2023
87,336,658 shares
Nine months ended November 30, 2022
87,850,951 shares(Note) The Company conducted a stock split on September 1, 2023 at a ratio of two shares for one share ofcommon stock. Accordingly, “total number of issued shares at the end of the period,” “total number oftreasury shares at the end of the period,” and “average number of shares during the period” are calculated
assuming that the stock split took place at the beginning of the fiscal year ended February 28, 2023.
* These quarterly consolidated financial results are not covered by the quarterly review conducted by certified
public accountants or audit corporations.
* Explanation of the proper use of financial results forecast and other notes
The statements regarding financial results forecast in this report are based on the information that is available, aswell as estimates, assumptions and projections that are believed to be reasonable at the time of publication, anddo not guarantee the achievement of the projections. Therefore, there might be cases in which actual results differ
from forecast values.

Appendix
1. Qualitative Information on Consolidated Financial Results for the Period under Review

2(1) Explanation of Operating Results

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections

3

2. Consolidated Financial Statements

4(1) Consolidated Balance Sheets

4(2) Consolidated Statements of Income and Comprehensive Income

6

3. Additional Information

8(1) Sales Results by Segment (Consolidated)

8(2) Status of Stores (Consolidated)811. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation of Operating Results
During the nine months ended November 30, 2023 (March 1, 2023 to November 30, 2023), theJapanese economy showed a gradual pickup as there were signs of recovery in areas such as personal
consumption and the employment situation due to the relaxation of various regulations including thereclassification of COVID-19 from Class 2 to Class 5 under the Infectious Diseases Control Law.
However, the impact of soaring utility costs and raw material prices caused by prolonged Russia’sinvasion of Ukraine and higher prices due to the depreciation of the Japanese yen is still continuing. In
addition, the rising temperatures have resulted in a shorter autumn, causing the apparel industry to missopportunities to sell autumn and winter gear. Furthermore, wage costs and delivery costs are rising
resulting from labor shortages, creating a difficult operating environment for retailers that operate stores.
Under such a business environment, the Company has continued its efforts to strengthen EC sales andonline promotions ever since COVID-19 began spreading. We focus on providing services as well as
creating points of contact and strengthening connections with customers by employing tools such as theofficial app, social networking services (SNS), and e-mail newsletters, aiming for long-term
interchangeable utilization of online and offline channels. The number of our official app members hasexceeded 9.1 million, with 10 million in sight. As influencers, employees of the Company proactively
approach target customers through SNS, attracting more customers to the Company’s EC sites and stores.
The number of followers of individual staff accounts of SNS has surpassed 13.4 million. The flexible
utilization of EC, making full use of not only the Company’s own EC platform PAL CLOSET, but also
ZOZOTOWN, has contributed to boosting sales.
Both the number of customers visiting and sales at physical stores are rising, as the easing of selfrestraint regulations led to an increase in foot traffic and a turnaround in commercial facilities attracting
customers. We have accelerated new store openings and expanded the size of existing stores with a focus
on 3COINS, which will celebrate the 30th anniversary in April 2024.
In addition, we continued to implement our priority measures that have been in place, including
optimizing inventory and improving gross profit margins through the enforcement of the 4-weekmerchandizing, and optimizing personnel costs and streamlining store operations through efficient shiftscheduling.
Through these measures, net sales in the Apparel Business increased by ¥10,802 million year on yearto ¥88,496 million and net sales in the Miscellaneous Goods/Accessories Business increased by ¥11,026
million year on year to ¥53,904 million.
As a result of the above, net sales for the nine months ended November 30, 2023 increased by¥21,872 million year on year to ¥142,545 million. In terms of profit, operating profit increased by ¥3,161
million year on year to ¥15,548 million, ordinary profit increased by ¥3,164 million year on year to¥15,761 million, and profit attributable to owners of parent increased by ¥2,360 million year on year to¥10,353 million.
Since our establishment in October 1973, we have correctly grasped the trends toward sophisticationof fashion sensibility and toward the accompanying diversification and differentiation in fashion market.
As a result of our repeated proposals in response to such trends, we have established an unshakable
position in the fashion industry as a company that meets consumer needs with the ability to offer multiple
concepts, and the year 2023 marked our 50th anniversary. We will continue to make further proposals toa new fashion life and contribute to society through the development of clothing culture.
2(2) Explanation of Financial Position(Assets)
Current assets increased by ¥14,076 million compared with the end of the previous fiscal year, due
mainly to increases in cash and deposits by ¥324 million, notes and accounts receivable - trade by ¥4,687
million, and merchandise and finished goods by ¥6,989 million.
Non-current assets increased by ¥2,338 million compared with the end of the previous fiscal year, due
primarily to increases in buildings and structures by ¥1,708 million, other property, plant and equipmentby ¥154 million, and guarantee deposits by ¥221 million.
(Liabilities)
Current liabilities increased by ¥7,530 million compared with the end of the previous fiscal year, due
mainly to increases in notes and accounts payable - trade by ¥10,016 million and other current liabilitiesby ¥3,553 million, despite decreases in income taxes payable by ¥2,210 million and provision forbonuses by ¥792 million.
Non-current liabilities increased by ¥3,316 million compared with the end of the previous fiscal year,
due primarily to increases in long-term borrowings by ¥2,844 million and asset retirement obligations by¥493 million.
(Net assets)
Net assets increased by ¥5,568 million compared with the end of the previous fiscal year, due mainly
to an increase in retained earnings by ¥7,059 million, offset by ¥1,497 million purchase of treasury
shares.
(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections
Given the financial results for the period under review, the Company has revised its earlier dividend
forecast announced on October 11, 2023 in the “Consolidated Financial Results for the Six Months
Ended August 31, 2023.” For details, please refer to the “Notice Concerning Revision of Dividend
Forecast (available in the original Japanese version only)” released today.

32. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of February 28, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for point card certificates
ProvisionsOther
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

As of November 30, 2023

63,8458,554
12,518577
85,49664,16913,241
19,5082,653
99,573

6,940
2,179
9,120
333

8,649
2,333
10,983346

11,7745,840(54)
17,56027,014
112,510

11,9966,081(54)
18,02329,353
128,926

24,335
250
3,064
4,828
2,602
178
546
7,431
43,23734,351250–
2,618
1,809211
540
10,98550,767

8,118
1,337
135
3,402
1,088
14,08257,31910,962
1,415
137
3,896
987
17,39968,166

(Millions of yen)
As of February 28, 2023
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets5

As of November 30, 2023

3,181
4,478
49,703(2,174)55,187

3,181
4,478
56,762(3,672)60,74913(13)
607(5)

108
55,191
112,510–60,760128,926

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Share of profit of entities accounted for using
equity method
Royalty income
Foreign exchange gains
Subsidy income related to COVID
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury shares
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

Nine months ended
November 30, 2022
120,672
53,06567,60655,21912,387

Nine months ended
November 30, 2023
142,545
62,81879,726
64,177
15,548

10

138

264

12–
45
91
289

83–
65
342

62–
17
79
12,596

64
30
35
129
15,76128
480
509
12,0874,225(90)4,134
7,952(41)
7,993

118
239
358
15,403
4,962
95
5,058
10,344(8)10,353

Consolidated Statements of Comprehensive Income(Millions of yen)
Nine months ended
November 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

77,952Nine months ended
November 30, 2023
10,3440

18

139(0)

3

1

21
7,973

16
10,3608,014

10,369(41)(8)

3. Additional Information(1) Sales Results by Segment (Consolidated)
Nine months ended
November 30, 2022
million yenApparel Business
77,694
Miscellaneous Goods/42,877
Accessories Business
Other100Total
120,672

Nine months ended
November 30, 2023
million yen
88,496Percent change
year-on-year%
113.9

53,904125.7

144
142,545

143.3
118.1

(2) Status of Stores (Consolidated)

Number of stores as of February 28, 2023

Nine months ended
November 30, 2023
927 stores

Number of new stores

75 stores

Number of closed stores

36 stores

Number of stores as of November 30, 2023

966 stores8