Consolidated Financial Results
for the Three Months Ended May 31, 2024
[Japanese GAAP]
July 30, 2024
Company name: PAL GROUP Holdings CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2726
URL: http://www.palgroup.holdings/
Representative: Isamu Matsuo, Chairman and Representative Director
Contact: Akiyuki Tameda, Senior Managing Executive Officer and General Manager, Public Affairs Office
Phone: +81-6-6227-0308
Scheduled date of filing quarterly securities report: August 14, 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 Three Months Ended May 31, 2024 (March 1, 2024 to May 31, 2024)(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%Three months ended
51,441
9.5
6,306
10.5
6,422
10.1May 31, 2024
Three months ended
46,991
19.9
5,707
29.0
5,833
27.9
May 31, 2023
(Note) Comprehensive income: Three months ended May 31, 2024: ¥4,206 million [3.9%]
Three months ended May 31, 2023: ¥4,048 million [32.2%]
Basic earnings pershare

Diluted earnings per
shareyenyen

million yen%

4,198

3.7

4,049

31.9

Three months ended
48.36—
May 31, 2024
Three months ended
46.10—
May 31, 2023
(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 29, 2024.
(2) Consolidated Financial Position
Total assets
million yen

Net assets

Equity ratio

million yen%

As of May 31, 2024
131,399
63,310
As of February 29,126,922
63,4442024(Reference) Equity: As of May 31, 2024: ¥63,310 million
As of February 29, 2024: ¥63,444 million

48.2
50.0

2. Dividends
1st quarter-end

Annual dividends
2nd quarter-end 3rd quarter-endyenFiscal year ended—
February 29, 2024
Fiscal year ending—
February 28, 2025
Fiscal year ending
February 28, 2025
(Forecast)(Note) Revision of dividend forecast: NoYear-end

Totalyenyenyenyen

0.00

—

50.00

50.00

0.00

—

50.00

50.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2025 (March 1, 2024 toFebruary 28, 2025)(% 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

First half
99,2105.4
9,180 (10.9)
9,280
Full year
203,500
5.7
20,1208.1
20,370(Note) Revision of consolidated financial results forecast: No%(10.6)
8.1

million yen

5,880
12,940%(16.0)
0.7

67.72
149.04yen

* 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 May 31, 2024
92,544,000 shares
As of February 29, 2024
92,544,000 shares2) Total number of treasury shares at the end of the period:
As of May 31, 2024
5,720,704 shares
As of February 29, 2024
5,720,704 shares
3) Average number of shares during the period:
Three months ended May 31, 2024
86,823,296 shares
Three months ended May 31, 2023
87,850,071 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 29, 2024.
* 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 differfrom forecast values.

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

2(1) Explanation of Operating Results2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections

2

2. Consolidated Financial Statements

3(1) Consolidated Balance Sheets

3(2) Consolidated Statements of Income and Comprehensive Income

5

Consolidated Statements of Income

5

Three months ended May 31

5Consolidated Statements of Comprehensive Income

6

Three months ended May 31

6

3. Additional Information

7(1) Sales Results by Segment (Consolidated)

7(2) Status of Stores (Consolidated)711. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended May 31, 2024 (March 1, 2024 to May 31, 2024), the Japanese
economy showed a gradual recovery trend as socioeconomic activities progressed toward normalization,and corporate earnings, employment, and the income environment improved. However, the economic
outlook remains uncertain due to downside risks from price increases caused by the depreciation of theJapanese yen and other factors, as well as fluctuations in financial and capital markets.
Under such a business environment, the Company has made continued efforts to strengthen EC sales
and online promotions ever since COVID-19 began spreading, and advanced the acceleration of newstore openings and the expansion of the size of existing stores in response to an increase in foot traffic
and a turnaround in commercial facilities attracting customers.
Through these measures, net sales in the Apparel Business increased by ¥1,510 million year on yearto ¥30,717 million and net sales in the Miscellaneous Goods/Accessories Business increased by ¥2,937
million year on year to ¥20,666 million.
As a result of the above, net sales for the three months ended May 31, 2024 increased by 9.5% year
on year to ¥51,441 million. In terms of profit, operating profit increased by 10.5% year on year to ¥6,306
million, ordinary profit increased by 10.1% year on year to ¥6,422 million, and profit attributable toowners of parent increased by 3.7% year on year to ¥4,198 million.
(2) Explanation of Financial Position(Assets)
Current assets increased by ¥3,066 million compared with the end of the previous fiscal year, due
mainly to increases in notes and accounts receivable - trade by ¥2,829 million and merchandise andfinished goods by ¥1,552 million, despite a decrease in cash and deposits by ¥1,443 million.
Non-current assets increased by ¥1,410 million compared with the end of the previous fiscal year, due
primarily to an increase in buildings and structures by ¥936 million.
(Liabilities)
Current liabilities increased by ¥3,781 million compared with the end of the previous fiscal year, due
mainly to increases in notes and accounts payable - trade by ¥1,867 million and provision for bonuses by¥1,089 million.
Non-current liabilities increased by ¥830 million compared with the end of the previous fiscal year,
due primarily to increases in long-term borrowings by ¥580 million and asset retirement obligations by¥259 million.
(Net assets)
Net assets decreased by ¥134 million compared with the end of the previous fiscal year, due mainly
to a decrease in retained earnings by ¥142 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections
There is no change to the consolidated financial results forecast for the fiscal year ending February
28, 2025 from the financial results forecasts announced on April 9, 2024 in the “Consolidated Financial
Results for the Fiscal Year Ended February 29, 2024.”22. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of February 29, 2024
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
Income taxes payable
Provision for bonuses
Provision for point card certificates
Provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

3

As of May 31, 2024

67,228
10,374
16,505
2,584
96,69265,785
13,20318,0582,711
99,758

8,387
2,518
10,905
393

9,323
2,641
11,964416

12,3156,670(54)
18,931
30,230126,922

12,2677,047(54)
19,26031,641
131,399

28,845
250
3,480
3,315
212
741
8,179
45,02330,713
400
2,278
4,404
214
319
10,47548,805

10,962
1,255
1,208
3,877
1,149
18,45363,47711,542
1,276
1,257
4,136
1,070
19,28468,089(Millions of yen)
As of February 29, 2024
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
incomeTotal net assets
Total liabilities and net assets

4As of May 31, 2024

3,181
4,478
59,254(3,672)
63,241

3,181
4,478
59,112(3,672)
63,099

46(5)
204

7196

203

211

63,444
126,922

63,310131,399

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Three months ended May 31(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
Other
Total non-operating income
Non-operating expenses
Interest expenses
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

5

Three months ended
May 31, 2023
46,991
20,191
26,79921,092
5,707

Three months ended
May 31, 2024
51,441
22,172
29,26922,963
6,306

0

0

120

120

4–
34
160

4
2
22
150

21
12
34
5,833

24
9
34
6,422

38
33
72
5,761
1,872(152)
1,720
4,040
(8)
4,049

2679
105
6,316
2,306
(188)
2,118
4,198
–4,198

Consolidated Statements of Comprehensive Income
Three months ended May 31(Millions of yen)

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

6

Three months ended
May 31, 2023
4,040

Three months ended
May 31, 2024
4,198(0)2712(0)(6)0(1)

74,04874,206

4,057

4,206(8)–3. Additional Information(1) Sales Results by Segment (Consolidated)
Three months ended
May 31, 2023
million yen
Apparel Business
29,206
Miscellaneous Goods/
17,729
Accessories Business
Other55
Total
46,991Three months ended
May 31, 2024
million yen
30,717

Percent change
year-on-year%
105.2

20,666116.6

57
51,441

103.6
109.5

(2) Status of Stores (Consolidated)

Number of stores as of February 29, 2024

Three months ended
May 31, 2024
949 stores

Number of new stores

40 stores

Number of closed stores

7 stores

Number of stores as of May 31, 2024

982 stores7