Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2017
(Nine Months Ended November 30, 2016)[Japanese GAAP]
December 29, 2016

Company name: Adastria Co., Ltd.
Listing: TSE 1st section
Stock code:
2685
URL: http://www.adastria.co.jp
Representative: Michio Fukuda, Representative Director, Chairman & CEO
Contact:
Mika Takano, General Manager of Corporate Planning Department
Tel: +81-3-6895-6000
Scheduled date of filing of Quarterly Report:
January 13, 2017
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on December 29, 2016 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2017
(March 1, 2016 – November 30, 2016)(1) Consolidated results of operations (cumulative)
Net sales

Operating income

Million yen

Nine months ended Nov. 30, 2016
Nine months ended Nov. 30, 2015
Note: Comprehensive income%

Million yen%(Percentages represent year-on-year changes)
Net income attributable
Ordinary income
to owners of the parent
Million yen%

Million yen

148,925
1.4
13,632(5.0)
13,800(5.9)
146,8149.8
14,347155.4
14,665 146.5
Nine months ended Nov. 30, 2016: 8,602 million yen (down 19.2%)
Nine months ended Nov. 30, 2015: 10,647 million yen (up 243.6%)
Net income per share

Diluted net income per share

Yen

Yen

Nine months ended Nov. 30, 2016
Nine months ended Nov. 30, 2015

232.92164.09Reference: EBITDA

40.3
558.1

-

Nine months ended Nov. 30, 2016:
Nine months ended Nov. 30, 2015:
Nine months ended Nov. 30, 2016:
Nine months ended Nov. 30, 2015:

EPS before goodwill amortization%

11,172
7,964

19,511 million yen (down 5.1%)
20,551 million yen
267.07 yen (up 34.6%)
198.43 yen(*) For more details regarding definition, computational method and other matters of these indices, please refer to the section“Explanation of Results of Operations” on page 2.
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Net income per share has been calculated as if this stock
split had taken place at the beginning of FY2/16.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

As of Nov. 30, 2016
As of Feb. 29, 2016

91,27790,454

Reference: Shareholders’ equity

As of Nov. 30, 2016:

Equity ratio%

55,43453,28255,434 million yen

As of Feb. 29, 2016:

60.7
58.9
53,282 million yen

2. Dividends
1Q-end2Q-endDividend per share
3Q-end

Yen

Yen

Yen

Fiscal year ended Feb. 29, 2016
Fiscal year ending Feb. 28, 2017
Fiscal year ending Feb. 28, 2017 (forecast)

-

40.00
35.00

Year-end

Total

Yen

Yen

-

90.00

130.00

40.00

75.00

Note: Revision to the most recently announced dividend forecast: None
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Dividends per share for the fiscal year ended February 29,
2016 are the actual amounts before the stock split.

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2017 (March 1, 2016 – February 28, 2017)
Net sales
Full year

Operating income

Ordinary income
Million yen

Million yen%

Million yen

208,900

4.4

17,000%6.2

17,300(Percentages represent year-on-year changes)
Net income attributable
Net income per
to owners of the parent
share

%

Million yen

6.9

Note: Revision to the most recently announced consolidated forecast: None
Reference: EBITDA
Fiscal year ending Feb. 28, 2017 (forecast):
EPS before goodwill amortization
Fiscal year ending Feb. 28, 2017 (forecast):

12,000

%

31.5

Yen

252.0924,900 million yen (up 1.2%)
298.30 yen (up 27.5%)

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: Excluded: 1(ADASTRIA SINGAPORE PTE. LTD.)
Note: Please refer to the section “2. Matters Related to Summary Information (Notes), (1) Changes in Significant Subsidiaries
during the Period” on page 3 for further information.

(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to the section “2. Matters Related to Summary Information (Notes), (3) Changes in Accounting Policies
and Accounting-based Estimates, and Restatements” on page 4 for further information.

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of Nov. 30, 2016:
48,800,000 shares
As of Feb. 29, 2016:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of Nov. 30, 2016:
1,756,545 shares

As of Feb. 29, 2016:

3) Average number of shares outstanding during the period
Nine months ended Nov. 30, 2016: 47,968,327 shares

Nine months ended Nov. 30, 2015:

643,396 shares
48,539,369 shares

Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Number of outstanding shares (common stock)has been calculated as if this stock split had taken place at the beginning of FY2/16.
Note: Numbers of treasury shares include the Company’s stock held by the Stock Compensation Employee Stock Ownership
Plan (ESOP) Trust and the Board Incentive Plan (BIP) Trust (555,900 shares as of Nov. 30, 2016).
Note 1: Indication of quarterly review procedure implementation status
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial
Instruments and Exchange Act. At the time of disclosure, the review procedures for these quarterly financial statements
have not been completed.
Note 2: Cautionary statement with respect to forward-looking statements
Forward-looking statements in this report are based on currently available information and certain assumptions judged to bereasonable. Actual results may differ significantly from these forecasts for a number of factors. Please refer to the section“Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 regarding preconditions or otherrelated matters for the forecast shown above.

Reference: Summary of Non-consolidated Forecast
Non-consolidated Forecast for the Fiscal Year Ending February 28, 2017 (March 1, 2016 – February 28, 2017)
Net sales
Million yen%

Operating income

Ordinary income(Percentages represent year-on-year changes)
Net income
Net income per share

Million yen

Million yen

Million yen%%

Full year
196,700
4.7
16,4006.7
16,3005.4
Note: Revision to the most recently announced non-consolidated forecast: None

11,200

%

34.3

Yen

235.28Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

3

2. Matters Related to Summary Information (Notes)

3(1) Changes in Significant Subsidiaries during the Period

3(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

3(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4(4) Additional Information

5

3. Quarterly Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8(3) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

4. Supplementary Information

11(1) Number of Stores

11(2) Sales for Brands and Regions

12(3) Sales for Merchandise Categories

12

- 1 -

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year (March 1-November 30, 2016), the Japanese economy, although
held down somewhat by sluggish corporate earnings and capital expenditures, continued to recover slowly,
thanks to government stimulus measures. Consumer spending in Japan stayed generally firm due to improved
consumer sentiment reflecting the gradual increase in real total wage income.
Regarding the store network, we opened 77 stores (including five overseas), and closed 33 (including sevenoverseas), resulting in a total network of 1,368 stores (including 102 overseas) at the end of November 2016.
The gross profit margin was almost flat year on year at 58.7%, 0.1 percentage point higher than one year earlier.
Further progress in cost control more than offset the effect of the increase in price discounts during the latesummer and early fall season.
The ratio of selling, general and administrative (SG&A expenses) to sales increased 0.8 percentage point fromone year earlier to 49.6% mainly due to the substantial expenditures and investments to build a sound base for
growth, namely, preparations for launching new brands and businesses and preliminary studies about upgrading
the computer system and value chain process. As a result, the operating margin decreased 0.6 percentage point to
9.2%.
There was a gain on sales of investment securities of 3,763 million yen as extraordinary income. Extraordinary
losses of 85 million yen for damage caused by the April 2016 earthquake in Kumamoto prefecture were also
posted.
As a result, consolidated net sales in the first nine months increased 1.4% year-on-year to 148,925 million yen,operating income decreased 5.0% to 13,632 million yen, ordinary income decreased 5.9% to 13,800 million yen,and net income attributable to owners of the parent increased 40.3% to 11,172 million yen.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 5.1% to 19,511 million yen
and earnings per share (EPS) before goodwill amortization rose 34.6% to 267.07 yen. (*)(*) Amortization of goodwill that mainly resulted from the consolidation of TRINITY ARTS INC. (subsequently
absorbed by the Company) has caused large declines in operating income and all subsequent categories of
profits since the fiscal year that ended on February 28, 2014. Since goodwill amortization is not a cash
expense, this amortization created a large gap between changes in cash flows and changes at all levels of
profits starting with operating income. Furthermore, comparisons with foreign companies are difficult
because of differences in accounting standards of individual countries for recording goodwill amortization. As
a result, we are newly announcing EBITDA and EPS before goodwill amortization as reference financial
indicators.
EBITDA
Operating income + Depreciation + Amortization of goodwill (SG&A expenses)
EPS before goodwill amortization(Net income attributable to owners of the parent + Amortization of goodwill (SG&A expenses, andextraordinary losses) + Impairment losses (goodwill)) / Average number of shares outstanding during theperiod- 2 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year(2) Explanation of Financial Position
Total assets increased 823 million yen from as of February 29, 2016 to 91,277 million yen as of November 30,
2016. This was mainly due to increases in notes and accounts receivable-trade of 6,404 million yen andinventories of 5,667 million yen, while there were decreases in cash and deposits of 8,799 million yen andinvestment securities of 2,948 million yen.
Liabilities decreased 1,328 million yen to 35,843 million yen. This was mainly due to decreases of 1,238 million
yen in electronically recorded obligations-operating and 1,034 million yen in provision for bonuses, while there
was an increase in accounts payable-other of 1,203 million yen.
Net assets increased 2,151 million yen to 55,434 million yen. This was mainly due to an increase of 7,301
million yen in retained earnings, while there was an increase of 2,818 million yen in treasury shares (decrease in
net assets) and a decrease of 2,587 million yen in valuation difference on available-for-sale securities.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There are no revisions to the consolidated forecast for the current fiscal year that was announced on September
30, 2016.
Reference: Explanation of Non-consolidated Forecast and Other Forward-looking Statements
There are no revisions to the non-consolidated forecast for the current fiscal year that was announced on
September 30, 2016.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
ADASTRIA SINGAPORE PTE. LTD. was excluded from the scope of consolidation in the second quarter of thecurrent fiscal year, because of the completion of its liquidation.
ALICIA CO., LTD., a newly established subsidiary was included in the scope of consolidation, and peoples inc.,a newly established joint venture company became an equity-method affiliate. These two companies, however, do
not qualify as specified subsidiaries.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.

- 3 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Application of the accounting standards for business combinations
The Company has adopted the “Accounting Standard for Business Combinations” (Accounting Standards Boardof Japan (ASBJ) Statement No. 21, issued on September 13, 2013), “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, issued on September 13, 2013), “Accounting Standard forBusiness Divestitures” (ASBJ Statement No. 7, issued on September 13, 2013), etc. from the first quarter of thecurrent fiscal year. Accordingly, difference arising from changes in the Company’s ownership interests in
subsidiaries in cases where control is retained is recognized in capital surplus, and the acquisition costs inconnection with business combinations are recognized as expenses in the fiscal year in which they arise.
Regarding business combinations that take place on or after the beginning of the first quarter of the current fiscal
year, the Company has revised the method to reflect reviewed allocation of the acquisition costs arising fromdetermination of the provisional accounting treatment on the quarterly consolidated financial statements to which
the date of the business combination belongs. In addition, the minority interests item has been renamed
non-controlling interests. For consistency with these changes, the consolidated financial statements for the firstnine months of the previous fiscal year and the previous fiscal year have been revised.
The Company has adopted these accounting standards, etc. from the beginning of the first quarter of the current
fiscal year, in accordance with the transitional accounting treatments set forth in Article 58-2 (4) of the
Accounting Standard for Business Combinations, Article 44-5 (4) of the Accounting Standard for Consolidated
Financial Statements, and Article 57-4 (4) of the Accounting Standard for Business Divestitures.
The effect of this change on the quarterly consolidated financial statements for the first nine months is
insignificant.
Change in depreciation method of property, plant and equipment
Following tax law revisions, the Company has adopted the “Practical Solution on a Change in Depreciation
Method due to Tax Reform 2016” (ASBJ Practical Issue Task Force (PITF) No. 32, issued on June 17, 2016)
from the first quarter of the current fiscal year, and changed the depreciation method for facilities attached tobuildings and structures acquired on or after April 1, 2016, from the declining-balance method to the straight-line
method.
The effect of this change on the quarterly consolidated financial statements for the first nine months is
insignificant.

- 4 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

(4) Additional Information
Transactions of delivering the Company’s own stock to employees, etc. through trusts
The Company has established a Stock Compensation Employee Stock Ownership Plan (ESOP) Trust as anincentive plan for the purpose of reinforcing the commitment of executive officers (excluding executive officers
who are directors) and senior management officers to contribute to medium and long-term growth in sales andearnings as well as corporate value.
(1) Summary of the plan
The Company established this trust by making a payment to the trust for the acquisition of the Company’s stock.
The trust beneficiaries are all eligible executive officers and senior management officers. In accordance withrules for the distribution of stock, eligible executive officers and managers are awarded certain number of points
based on their positions and individual performance evaluation and the results of operations. These individuals
can then receive the Company’s stock based on the number of points. The executive officers and senior
management officers make no payments because the Company’s contributions to the trust cover the entire cost ofpurchasing the Company’s stock through trust account.
(2) The Company’s stock held by the trust account
The Company’s stock held by the trust account is included in net assets as treasury shares at book value(excluding associated expenses). The number of shares of the Company’s stock held by the trust account was
412,500 shares with a book value of 1,348 million yen as of November 30, 2016.
Stock compensation plan for directors based on results of operations
The Company has established a Board Incentive Plan (BIP) Trust as the stock compensation plan based on the
results of company operations for the purpose of reinforcing the commitment of directors (excluding outside
directors and directors who are not residents of Japan) to contribute to medium and long-term growth in sales andearnings as well as corporate value.
(1) Summary of the plan
The Company established this trust by making a payment to the trust for the acquisition of the Company’s stock.
The trust beneficiaries are all eligible directors. In accordance with rules for the distribution of stock, eligible
directors are awarded points based on their positions and the achievement of performance goals in the fiscal year
to be evaluated. After three years from the beginning of applicable fiscal years, these directors can then receive
the Company’s stock and cash from the disposal of the Company’s stock as compensation, based on the numberof points.
(2) The Company’s stock held by the trust account
The Company’s stock held by the trust account is included in net assets as treasury shares at book value(excluding associated expenses). The number of shares of the Company’s stock held by the trust account was
143,400 shares with a book value of 468 million yen as of November 30, 2016.

- 5 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Million yen)
Third quarter of FY2/17(As of Nov. 30, 2016)

FY2/16(As of Feb. 29, 2016)
AssetsCurrent assets
Cash and deposits

19,460

10,660Notes and accounts receivable-trade

7,668

14,072Inventories

15,076

20,743

Other

3,313

3,286

Allowance for doubtful accounts

(53)

(97)

45,46548,666Store interior equipment, net

6,933

7,402

Other, net

4,282

4,079

Total property, plant and equipment

11,215

11,482

Goodwill

5,493

3,855

Other

1,471

1,819

Total intangible assets

6,965

5,675

Investment securities

10,231

7,283

Lease and guarantee deposits

16,622

16,915

207

1,507

(253)

(252)

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Other
Allowance for doubtful accounts
Total investments and other assets

26,80725,45444,98842,61190,454

91,277

Notes and accounts payable-trade

6,768

7,642

Electronically recorded obligations-operating

9,901

8,662

Total non-current assets
Total assets
Liabilities
Current liabilities

Short-term loans payable

1,867

1,564

Accounts payable-other

10,331

11,535

Income taxes payable

4,368

3,853

Provision for bonuses

2,212

1,178

412

441

Other provision
Other

563

317

36,42635,195

Provision

94

202

Other

650

445

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities

- 6 -

745

647

37,17135,843

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

(Million yen)
Third quarter of FY2/17(As of Nov. 30, 2016)

FY2/16(As of Feb. 29, 2016)
Net assets
Shareholders’ equity
Capital stock

2,660

2,660

Capital surplus

6,987

7,227

Retained earnings

39,70947,010Treasury shares(1,824)(4,643)

Total shareholders’ equity

47,53352,255

Valuation difference on available-for-sale securities

5,445

2,858

Deferred gains or losses on hedges

(263)

211

567

109

Accumulated other comprehensive income

Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

- 7 -

5,749

3,179

53,28255,43490,454

91,277

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY2/16(Mar. 1, 2015 – Nov. 30, 2015)(Million yen)First nine months of FY2/17(Mar. 1, 2016 – Nov. 30, 2016)

Net sales

146,814148,925

Cost of sales

60,751

61,468Gross profit

86,06387,456

Selling, general and administrative expenses

71,71573,823Operating income

14,347

13,63298

125

Non-operating income
Dividend income
House rent income

99

84

Other

319

166

Total non-operating income

517

376

Interest expenses

27

10

Foreign exchange losses

65-

Loss on valuation of derivatives

4

97

Cost of lease revenue

72

69

Other

29

31

Total non-operating expenses

199

209

14,66513,800Gain on sales of investment securities

-

3,763

Gain on liquidation of subsidiaries and associates-

77

Total extraordinary income

-

3,841

331

38

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Impairment loss
Loss on disaster
Loss on sales of shares of subsidiaries andassociates
Loss on liquidation of subsidiaries and associates

-

85

173

-

-

10

Total extraordinary losses

505

134

Net income before income taxes

14,15917,507

Income taxes-current

6,124

6,592

Income taxes-deferred

70

(257)

Total income taxes

6,195

6,334

Net income

7,964

11,172

Net income attributable to owners of the parent

7,964

11,172- 8 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY2/16(Mar. 1, 2015 – Nov. 30, 2015)(Million yen)First nine months of FY2/17(Mar. 1, 2016 – Nov. 30, 2016)

Net income

7,964

11,172Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

3,091(2,587)

(265)

474

Foreign currency translation adjustment

(143)

(457)

Total other comprehensive income

2,682(2,570)10,647

8,602

10,647

8,602

-

-

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable tonon-controlling interests- 9 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
The Company has purchased 1,108,000 shares of its own shares following the resolution approved at the Boardof Directors meeting held on September 30, 2016. Mainly for this reason, treasury shares increased by 2,818
million yen during the first nine months of the fiscal year to 4,643 million yen at the end of the third quarter.

- 10 -

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

4. Supplementary Information(1) Number of Stores
Number of stores
Store format / region

First nine months of FY2/17

As of Feb. 29,
2016

OpenedGLOBAL WORK

184

10

-

(2)

Increase/decrease
8

LOWRYS FARM

157

4

(3)

(6)

(5)

152

niko and ...

123

9

-

(2)

7

130

STUDIO CLIP

171

11

-

-

11

182

LEPSIM (Note 3)

130

6

-

-

6

136

JEANASIS

83

3

-

(4)

(1)

82

RAGEBLUE

59

3

-

(1)

2

61

HEATHER

67

6

9

(2)

13

80

Others

246

20

(6)

(9)

5

251

Total (Adastria)

Rebranded

ClosedAs of Nov. 30,
2016
192

1,220

72

-

(26)

46

1,266

Hong Kong

27

-

-

(1)

(1)

26

China

40

4

-

(5)

(1)

39

Taiwan

27

1

-

-

1

28

South Korea

10

-

-

(1)

(1)

9

Total (Overseas)

104

5

-

(7)

(2)

102

Total (Group)

1,324

77

-

(33)

44

1,368

Notes:

1. The number of stores is categorized by using brand operating divisions and geographic regions.
2. The number of stores includes e-commerce websites of other companies and e-commerce websites of Adastria.
3. The brand name of LEPSIM LOWRYS FARM has changed to LEPSIM in the first quarter of FY2/17.

- 11 -

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2017 Fiscal Year

(2) Sales for Brands and Regions
Brand / region

First nine months of FY2/17
Sales (million yen)
Composition (%)

YoY change (%)

GLOBAL WORK

27,96318.8

6.9

LOWRYS FARM

18,230

12.2

(6.3)

niko and ...

17,871

12.0

8.1

STUDIO CLIP

16,35611.0

6.8

LEPSIM (Note 3)

11,7167.9

3.7

JEANASIS

9,227

6.2

1.9

RAGEBLUE

6,549

4.4

(1.0)

HEATHER

5,752

3.8

(3.4)

Others27,395

18.4

1.2

Total (Adastria)

141,064

94.7

2.6

Hong Kong

4,842

3.3

(11.8)

China

1,342

0.9

(8.3)

Taiwan

1,102

0.7

(3.5)

573

0.4

(12.8)South Korea

Notes:

Total (Overseas)

7,860

5.3

(12.0)

Total (Group)

148,925

100.0

1.4

1. The number of stores is categorized by using brand operating divisions and geographic regions.
2. The above figures are sales to external customers and do not include internal sales between consolidated
subsidiaries.
3. The brand name of LEPSIM LOWRYS FARM has changed to LEPSIM in the first quarter of FY2/17.

(3) Sales for Merchandise Categories
Category

First nine months of FY2/17
Sales (million yen)

Composition (%)

YoY change (%)

21,40814.4

8.1

Lady’s apparel (bottoms, tops)

97,711

65.6

(0.4)

Others29,80420.0

3.1

148,925

100.0

1.4

Men’s apparel (bottoms, tops)

Total
Notes:

1. The others category includes additions to the provision for point card certificates and other items.
2. The above figures are sales to external customers and do not include internal sales between consolidated
subsidiaries.

This financial report is solely a translation of the Company’s Kessan Tanshin (including attachments) in Japanese, which
has been prepared in accordance with accounting principles and practices generally accepted in Japan, for theconvenience of readers who prefer an English translation.

- 12 -