Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2025
(Three Months Ended May 31, 2024)[Japanese GAAP]
June 28, 2024

Company name: Adastria Co., Ltd.
Listing: Tokyo Stock Exchange
Stock code:
2685
URL: https://www.adastria.co.jp
Representative: Osamu Kimura, Representative Director and President
Itsuo Iwakoshi, Senior Executive Officer, General Manager ofContact:
Administration Division
Tel: +81-3-5466-2060
Scheduled date of filing of Quarterly Report:
July 12, 2024
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for investors)
Note: The original disclosure in Japanese was released on June 28, 2024 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 28, 2025
(March 1, 2024 – May 31, 2024)(1) Consolidated results of operations (cumulative)
Net sales(Percentages represent year-on-year changes)
Net income
Ordinary profit
attributable to ownersof the parent

Operating profit

Million yen%

Million yen%

Million yen%

Million yen

Three months ended May 31, 2024
74,001
8.1
6,014
(4.2)
6,288
(1.0)
Three months ended May 31, 2023
68,478
18.1
6,278
37.2
6,349
28.9
Note: Comprehensive income
Three months ended May 31, 2024: 4,770 million yen (down 0.6%)
Three months ended May 31, 2023: 4,799 million yen (up 20.3%)
Net income per share

Diluted net income per share

Yen

Yen

Three months ended May 31, 2024
Three months ended May 31, 2023

97.27
98.41

%

4,405
4,464

(1.3)
34.7

-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of May 31, 2024
131,174
As of Feb. 29, 2024
127,915
Reference: Shareholders’ equity As of May 31, 2024: 72,893 million yen

74,253
71,581
As of Feb. 29, 2024: 70,143 million yen

55.6
54.8

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 29, 2024
35.00
Fiscal year ending Feb. 28, 2025
Fiscal year ending Feb. 28, 2025 (forecast)
35.00
Note: Revision to the most recently announced dividend forecast: None

-

50.00

85.00

-

55.00

90.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2025 (March 1, 2024 – February 28, 2025)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit(Percentages represent year-on-year changes)
Net income attributable to Net income perowners of the parent
shareMillion yen%

Million yen

Full year
290,000
5.2
19,0005.5
19,000Note: Revision to the most recently announced consolidated forecast: None

3.3

12,700

%

Yen

(6.0)

280.48

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: 1 (ADASTRIA PHILIPPINES INC.)

Excluded: -(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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of May 31, 2024:
48,800,000 shares
As of Feb. 29, 2024:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of May 31, 2024:
3,478,202 shares

As of Feb. 29, 2024:

3,520,769 shares

3) Average number of shares outstanding during the period
Three months ended May 31, 2024: 45,286,292 shares

Three months ended May 31, 2023: 45,363,497 shares

Note 1: The current quarterly financial report is not subject to quarterly review procedures by certified public accountants or
auditing firms.
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 “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast andOther Forward-looking Statements” on page 3 regarding preconditions or other related matters for the forecast shown above.

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 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. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Changes in the Scope of Consolidation or Application of the Equity Method

8

Quarterly Consolidated Balance Sheet

8

Segment Information

9

Subsequent Events10

3. Supplementary Information

12(1) Sales for Brands and Regions

12(2) Sales for Merchandise Categories

12(3) Number of Stores

13

- 1 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated results(Million yen)First three months of FY2/24(Mar. 1, 2023 – May 31, 2023)

First three months of FY2/25(Mar. 1, 2024 – May 31, 2024)

Net sales

68,478Operating profit

YoY change(%)

74,001

YoY change(Amount)
5,523

6,278

6,014

(263)

(4.2)

Ordinary profit

6,349

6,288

(60)

(1.0)

Net income attributableto owners of the parent

4,464

4,405

(59)

(1.3)

8.1

During the first quarter (March 1 - May 31, 2024) of the current fiscal year, there was a slow recovery of theJapanese economy supported by improvements in corporate earnings and employment. In addition, the demand
created by foreign tourists and wage increases that have continued since last year raised domestic demand. As aresult, consumer spending in the fashion sector was strong. Despite these favorable trends, the outlook for theJapanese economy remains uncertain due to the continuing trend of yen depreciation, the labor shortage, conflicts
in Ukraine and the Middle East, the high cost of resources and energy, and other reasons.
The Adastria Group has made steady progress with initiatives based on the following strategies for growth in themedium-term management plan.
Growth Strategy Ⅰ

Multi-Brand, Multi-Category

Growth Strategy IⅠ Digital Customer Interactions and Services
Growth Strategy ⅠII Glocal
Growth Strategy ⅠV New BusinessGrouping of brands according to roles for improved
profitability and growth
Accelerate growth of our EC site and create a fun EC
community
Use successful brand models in Mainland China andcultivate Southeast Asia
Establish a food and beverage business and create new
appealConsolidated net sales increased 8.1% year-on-year to 74,001 million yen, operating profit decreased 4.2% to6,014 million yen, ordinary profit decreased 1.0% to 6,288 million yen, and net income attributable to owners of
the parent decreased 1.3% to 4,405 million yen.
In the Apparel and Sundry Goods-related business, sales in Japan were briefly held down by cool weather inMarch but then benefited from favorable weather. There were strong sales of apparel for outings and of casual
apparel. Merchandise that accurately targeted fashion trends, products that became very popular, TV commercials
and the loyalty point program further contributed to sales. As a result, first quarter sales were 7.1% higher than
one year earlier.
Progress continued with our digital strategy. There are promotions tha t link the Adastria “Dot ST” e-commerce
website and physical stores, merchandise using collaborations with popular artists and characters, and otheractivities to attract customers. Due to these measures, the number of members of our loyalty point program / ourown e-commerce increased by about 700,000 during the first quarter to 18.2 million.
Sales increased 40.6% in Taiwan and 39.9% in Hong Kong as the multi -brand strategy generated strong physicalstore and e-commerce sales. In Mainland China, sales increased 7.5% because of higher e-commerce sales evenas the real estate sector downturn continued and consumer spending was lackluster. In the United States, sales
decreased 5.4% because of slow sales in the wholesale sector. In Thailand, where business oper ations started in
the second quarter of the previous fiscal year, first quarter sales increased. Overall, sales outside Japan, converted
into yen, were 18.6% higher than one year earlier.
In the Other segment, which is the food and beverage business, the b usiness climate remains challenging becauseof the high cost of raw materials and utilities, the labor shortage and other difficulties. Despite these challenges,
sales increased 11.2% as demands involving restaurants increase, new locations were opened, and sales increased- 2 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Yearoutside Japan.
Despite the negative effects of the yen’s depreciation, we worked to improve the gross profit margin bycontrolling inventories and reducing discounts by supplying merchandise at the right times, prices and volumes,
adding more value to merchandise and continuing to revise prices, but there was a downward pressure on
profitability from the rising share of sales from wholesale and other B -to-B operations. As a result, the grossprofit margin of the Apparel and Sundry Goods-related business decreased from one year earlier. In the Other
segment (the food and beverage business), the gross profit margin improved slightly mainly because of pricerevisions prices and cost controls. However, the consolidated gross profit marg in decreased 0.9 percentage points
from one year earlier to 56.2%.
Selling, general and administrative expenses increased mainly because of higher employee remuneration andincreases in personnel expenses, store leasing expenses, cargo transport expenses a nd other items along with sales
growth. The SG&A to sales ratio increased 0.2 percentage points from one year earlier to 48.1%.
As a result, the operating margin fell 1.1 percentage point to 8.1% and operating profit decreased 4.2%.
Non-operating income includes foreign exchange gains of 216 million yen and there was an extraordinary loss of
39 million yen for the impairment of store assets.
Business segment performance was as follows.
1) Apparel and Sundry Goods-related BusinessAs a result of the activities in this business explained earlier, sales increased 7.9% year-on-year to 71,035 million
yen and segment profit increased 1.5% to 6,672 million yen.
We opened 48 stores (including 9 overseas) and closed 8 stores (including 4 overseas), resulting in a total of
1,532 stores (including 127 overseas) at the end of the first quarter of the fiscal year.
2) Other (Food and Beverage Business)
Sales increased 11.4% to 2,985 million yen and segment loss was 384 million yen (compared with a loss of 227
million yen in the same period of the previous fiscal year).
The number of stores at the end of the first quarter was 74, a result of opening of 4 stores and closing of 1 store.
(2) Explanation of Financial Position
Total assets increased 3,258 million yen from as of February 29, 2024 to 131,174 million yen as of May 31, 2024.
This was mainly due to increases of 4,313 million yen in notes and accounts receivable-trade, 716 million yen in
store interior equipment, net and 472 million yen in other, net under property, plant and equipment, while there
was a decrease of 3,215 million yen in cash and deposits.
Liabilities increased 586 million yen to 56,921 million yen. There were increases of 1,280 million yen inelectronically recorded obligations-operating and 950 million yen in accounts payable-other, while there weredecreases of 1,015 million yen in notes and accounts payable-trade and 973 million yen in provision for bonuses.
Net assets increased 2,672 million yen to 74,253 million yen. This was mainly due to increases of 2,122 million
yen in retained earnings, 242 million yen in deferred gain or losses on hedges and 236 million yen in foreign
currency translation adjustment.
(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 April 4, 2024.

- 3 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)First quarter of FY2/25(As of May 31, 2024)

FY2/24(As of Feb. 29, 2024)
AssetsCurrent assets
Cash and deposits

23,371

20,156

Notes and accounts receivable-trade

15,815

20,129Inventories

26,83926,956

Other

2,788

2,841

Allowance for doubtful accounts

(83)

(122)

68,731

69,960Store interior equipment, net

6,778

7,495

Other, net

17,122

17,595

Total property, plant and equipment

23,90125,091

Goodwill

1,109

1,054

Other

11,266

11,535

Total intangible assets

12,376

12,590Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets
Investment securities

768

784

Leasehold and guarantee deposits

13,71913,948

Other

8,733

9,126

Allowance for doubtful accounts

(314)

(326)

Total investments and other assets

22,90623,532

59,184

61,214

127,915

131,174

Notes and accounts payable-trade

14,013

12,997

Electronically recorded obligations-operating

8,651

9,932

-

200

401

421

Accounts payable-other

14,14415,094

Income taxes payable

3,667

2,982

Provision for bonuses

2,460

1,486

175

71

Total non-current assets
Total assets
Liabilities
Current liabilities

Short-term borrowings
Current portion of long-term borrowings

Provision for point card certificates
Other provisions

477

526

Other

4,500

5,118

Total current liabilities

48,491

48,832504

594

Non-current liabilities
Long-term borrowings
Provisions

172

289

Other

7,166

7,204

Total non-current liabilities

7,842

8,088

56,33456,921

Total liabilities- 4 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

(Million yen)First quarter of FY2/25(As of May 31, 2024)

FY2/24(As of Feb. 29, 2024)
Net assets
Shareholders’ equity
Share capital

2,660

2,660

Capital surplus

7,213

7,213

Retained earnings

66,286

68,408Treasury shares(7,516)(7,384)

Total shareholders’ equity

68,64270,897

34

51

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

234

476

Foreign currency translation adjustment

1,231

1,467

Total accumulated other comprehensive income

1,500

1,995

Non-controlling interests

1,437

1,360

Total net assets

71,581

74,253

127,915

131,174

Total liabilities and net assets- 5 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY2/24(Mar. 1, 2023 – May 31, 2023)(Million yen)First three months of FY2/25(Mar. 1, 2024 – May 31, 2024)

Net sales

68,47874,001

Cost of sales

29,38332,395Gross profit

39,09441,605

Selling, general and administrative expenses

32,81635,591

Operating profit

6,278

6,014

61

216

Other

88

125

Total non-operating income

149

341

Interest expenses

55

57

Other

21

9

Total non-operating expenses

77

66

6,349

6,288

35

39

Non-operating income
Foreign exchange gains

Non-operating expenses

Ordinary profit
Extraordinary losses
Impairment loss
Total extraordinary losses

35

39

Net income before income taxes

6,314

6,249

Income taxes-current

2,465

2,417

Income taxes-deferred

(569)

(443)

Total income taxes

1,896

1,973

Net income

4,418

4,275

Net loss attributable to non-controlling interests

(46)

(130)

Net income attributable to owners of the parent

4,464

4,405

- 6 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY2/24(Mar. 1, 2023 – May 31, 2023)(Million yen)First three months of FY2/25(Mar. 1, 2024 – May 31, 2024)

4,418

4,275

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

12

16

354

242

Foreign currency translation adjustment

14

236

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable tonon-controlling interests

- 7 -

381

495

4,799

4,770

4,840

4,847

(41)

(77)

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in the Scope of Consolidation or Application of the Equity Method
Important changes in the scope of consolidation
In the first quarter of the current fiscal year, the newly established Adastria Philippines Inc. was included in thescope of consolidation.
Quarterly Consolidated Balance Sheet
Contingent liabilities
ZETTON, INC., a consolidated subsidiary of Adastria located in the United States, receive d US$8.2 million in
May 2021 due to the establishment of the Restaurant Revitalization Fund in accordance with the American
Rescue Plan Act of 2021 that became effective in March 2021. Subsequently, the U.S. Small Business
Administration began an investigation to determine if ZETTON was qualified to receive this payment.
The Adastria Group will continue to explain to the Small Business Administration the reasons for the belief that
ZETTON is properly qualified to receive this payment. This investigation may have an effect on the results ofoperations of the Adastria Group depending on upcoming events. At this time, it is difficult to determine an
estimate of the potential effect on results of operations.

- 8 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

Segment Information
I. First three months of FY2/24 (Mar. 1, 2023 – May 31, 2023)

1. Information related to net sales and profit or loss for each reportable segment
Reportable segment
Apparel and Sundry
Goods-related
Business

Other(Note 1)

Total

Adjustment(Note 2)

(Million yen)Amounts shown onquarterly consolidated
statement of income(Note 3)

Net sales
External sales
65,812
2,666
68,47868,478Inter-segment sales and transfers
0
13
14
(14)
Total
65,812
2,680
68,493(14)
68,478Segment profit (loss)
6,576
(227)
6,349
6,349
Notes: 1. “Other” represents the businesses which are not included in the reportable segment and mainly consists of Food andBeverage Business.
2. The amount of adjustment to segment profit (loss) is an adjustment to unrealized profit related to inter -segment
transactions.
3. The segment profit (loss) is consistent with the ordinary profit of the Quarterly Consolidated Statement of Income.
4. The segment profit (loss) includes corporate expenses that are allocated to each reportable segment.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.
II. First three months of FY2/25 (Mar. 1, 2024 – May 31, 2024)

1. Information related to net sales and profit or loss for each reportable segment
Reportable segment
Apparel and Sundry
Goods-related
Business

Other(Note 1)

Total

Adjustment(Note 2)

(Million yen)Amounts shown onquarterly consolidated
statement of income(Note 3)

Net sales
External sales
71,0352,965
74,00174,001
Inter-segment sales and transfers
0
19
19
(19)
Total
71,035
2,985
74,021(19)
74,001
Segment profit (loss)
6,672
(384)
6,288
6,288
Notes: 1. “Other” represents the businesses which are not included in the reportable segment and mainly consists of Food andBeverage Business.
2. The amount of adjustment to segment profit (loss) is an adjustment to unrealized profit related to inter-segment
transactions.
3. The segment profit (loss) is consistent with the ordinary profit of the Quarterly Consolidated Statement of Income.
4. The segment profit (loss) includes corporate expenses that are allocated to each reportable segment.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.

- 9 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

Subsequent Events
Share exchange to make zetton a wholly owned subsidiary
The Board of Directors of Adastria and zetton, inc. (collectively, the “Companies”) approved a resolution on
March 21, 2024 to conduct a share exchange (“Share Exchange”) to make Adastria the wholly owning parent
company and zetton a wholly owned subsidiary of Adastria. The Companies concluded a share exchange
agreement on the same day.
As a result of the Share Exchange, Adastria became the wholly owning parent company of zetton as of theeffective date of the Share Exchange (June 1, 2024). Shares of zetton were delisted from the Next Market
operated by the Nagoya Stock Exchange, Inc. on May 30, 2024 (last trading date t o be May 29, 2024).
The Share Exchange took place on June 1, 2024, and zetton became a wholly owned subsidiary of Adastria.
1. Outline of the Share Exchange(1) Name and business of wholly owned subsidiary involved in the share exchange
Name: zetton, inc.
Business activities: Restaurant management, development, and consulting(2) Purpose of the Share Exchange
zetton concluded that becoming a wholly owned subsidiary of Adastria will enable zetton to work moreclosely with Adastria and provide zetton with opportunities to expand its business while accelerating further
the implementation of policies under the capital and business alliance agreement. Utilizing the productdevelopment, marketing expertise, human resources, financial strength, domestic and overse as networks, andother management resources of the Adastria Group, the Share Exchange will enable the Companies to achieve
their management strategies from a medium- to long-term perspective in a flexible and timely manner, andenhance the corporate value of zetton.
(3) Effective date of Share Exchange
June 1, 2024
(4) Method of Share Exchange
The Share Exchange was conducted with Adastria as the wholly owning parent company and zetton as thewholly owned subsidiary. The effective date of the Share Exchange was June 1, 2024, after obtaining approvalat the zetton Ordinary General Meeting of Shareholders held on April 25, 2024, and without obtaining
approval at the Adastria general meeting of shareholders, pursuant to the simplified share exchange procedure
under Article 796-2 of the Companies Act.
2. Outline of accounting procedures
Adastria expects the Share Exchange to meet the requirements of a common control transaction, etc., under the“Accounting Standard for Business Combinations” and “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures.”3. Share exchange ratio, calculation method and number of shares delivered(1) Share exchange ratio
For each share of zetton stock, 0.36 shares of Adastria stock were allotted.
(2) Calculation of the share exchange ratio
The Companies requested third-party appraisers independent of both companies to calculate the shareexchange ratio to be used in the Share Exchange. After careful discussions and deliberation s based on the
results of calculation, the Companies determined that it is appropriate to conduct the Share Exchange using
the share exchange ratio, as the Share Exchange is appropriate and in the best interest of all shareholders of
the Companies.
(3) Number of shares delivered
1,137,723 shares- 10 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal YearBusiness combination through acquisition
On April 17, 2024, the Adastria Board of Directors approved a resolution for the absorption of TODAY’S
SPECIAL Co., Ltd., which is a wholly owned subsidiary of WELCOME Co., Ltd., for purpose of acquiring the
TODAY’S SPECIAL and GEORGE’S businesses of WELCOME.
Following the divestiture of these businesses by WELCOME, Adastria will purchase all of the stock of TODAY’S
SPECIAL, which is the company that will continue to operate these two businesses.
1. Summary of business combination(1) Acquired company and business activities
Acquired company:
Business activities:

TODAY’S SPECIAL Co., Ltd.
Lifestyle business centered on retail business(2) Reasons for acquisition
Guided by the mission of Play fashion!, Adastria is dedicated to using fashion to enrich lives and make people
happy. To accomplish this goal, the company is constantly enlarging operations to cover more merchandise
categories. One aspect of process is the growth of sales of lifestyle brands, primarily niko and… and studio
CLIP. During the past several years, lifestyle brands have increased to account for about one -fourth of total
sales. The addition of these two brands will further enlarge the lineup of me rchandise in the miscellaneous
product sector, which is expected to contribute to more growth.
Since its founding, WELCOME has operated a high-quality lifestyle business and created many distinctive
brands. TODAY’S SPECIAL and GEORGE’S have been core brands of the company since its establishment andstill have considerable growth potential. The agreement for Adastria to acquire these two brands is based on the
belief that the use of Adastria’s infrastructure and merchandise development expertise will furthe r increase thepotential for growth.
Adastria and WELCOME both have a commitment to help create even better communities through lifestylebusinesses such as fashion, designs, food and other items. Under the new management structure, TODAY’S
SPECIAL and GEORGE’S will join the more than 30 other brands of the Adastria Group to advance to the next
phase of their progress and aim for even more sales growth.
(3) Acquisition dateJuly 1, 2024 (tentative)(4) Legal form of acquisition
Acquisition of shares with cash(5) Company name after acquisition
TODAY’S SPECIAL’s name will not change.
(6) Percentage of voting rights acquired
100.0%(7) Basis for choosing the company to acquire
Adastria will acquire the shares in exchange for consideration in cash.
2. Acquisition cost of acquired companies and breakdown by type of consideration
Payment for the acquisition:
Acquisition cost:

Cash payment

4,500 million yen
4,500 million yen

3. Goodwill resulting from the acquisition
Not yet determined.
4. Summary of assets acquired and liabilities assumed on the date of business combination
Not yet determined.
- 11 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

3．Supplementary Information(1) Sales for Brands and Regions
Brand / region

First three months of FY2/25

YoY change (%)

Sales (million yen)

Composition (%)

GLOBAL WORK

14,57419.7

5.4

niko and ...

8,593

11.6

5.6

LOWRYS FARM

6,148

8.3

6.4

studio CLIP

5,625

7.6

3.7

LEPSIM

3,823

5.2

6.8

LAKOLE

3,185

4.3

19.1

JEANASiS

2,942

4.0

(1.6)

BAYFLOW

2,834

3.8

6.2

Others

11,062

14.9

17.1

Total (Adastria)

58,791

79.4

7.8

BUZZWIT Co., Ltd.

3,036

4.1

(5.5)

ELEMENT RULE Co., Ltd.

3,190

4.3

10.5

116

0.2

(43.5)

65,135

88.0

7.1

1,151

1.6

39.9

938

1.3

7.5

1,926

2.6

40.6

Other consolidated subsidiaries
Total (Japan)
Hong Kong
Mainland China
TaiwanThailandUSA
Total (Overseas)
Total (Apparel and Sundry Goods-related
Business)zetton, inc. (Note 3)
Total (Food and Beverage Business)(Note 4)
Total (Group)
Notes:

78

0.1

-

1,805

2.4

(5.4)

5,900

8.0

18.6

71,035

96.0

7.9

2,965

4.0

17.1

2,965

4.0

11.2

74,001100.0

8.1

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. Sales of zetton, inc. include sales of its consolidated subsidiary ZETTON, INC. (USA Business).
4. The YoY change for sales of Other (Food and Beverage Business) includes sales in the previous fiscal year of
ADASTRIA eat Creations Co., Ltd., which was liquidated on February 2, 2024.

(2) Sales for Merchandise Categories
Category

First three months of FY2/25

YoY change (%)

Sales (million yen)

Composition (%)

Men’s apparel (bottoms, tops)

11,92916.1

17.3

Lady’s apparel (bottoms, tops)

45,84762.0

6.1

Others

16,22421.9

7.4

74,001

100.0

8.1

Total
Notes:

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

- 12 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2025 Fiscal Year

(3) Number of Stores
Number of stores
Brand / region

First three months of FY2/25

As of Feb.

As of May29, 2024

Merged(Note 3)OpenedChangedClosedIncrease/decrease31, 2024

GLOBAL WORK

214

-

2

-

-

2

216

niko and ...

141

-

1

-

-

1

142

LOWRYS FARM

126

-

-

-

-

-

126

studio CLIP

179

-

7

-

-

7

186

LEPSIM

115

-

1

-

-

1

116

LAKOLE

78

-

7

-

-

7

85

JEANASiS

68

-

1

-

-

1

69

BAYFLOW

62

-

2

-

-

2

64

Others

259

6

14

-

(1)

19

278

Total (Adastria)

1,242

6

35

-

(1)

40

1,282

BUZZWIT Co., Ltd.

31

-

1

-

(2)

(1)

30

ELEMENT RULE Co., Ltd.

83

-

3

-

(1)

2

85

Other consolidated subsidiaries

14

(6)

-

-

-

(6)

8

Total (Japan)

1,370

-

39

-

(4)

35

1,405

Hong Kong

23

-

5

-

-

5

28

Mainland China

15

-

1

-

(2)

(1)

14

Taiwan

72

-

2

-

(1)

1

73

Thailand

2

-

-

-

-

-

2

USA

10

-

1

-

(1)

-

10

Total (Overseas)
Total (Apparel and Sundry
Goods-related Business)zetton, inc. (Note 4)

122

-

9

-

(4)

5

127

1,492

-

48

-

(8)

40

1,532

71

-

4

-

(1)

3

74

Total (Food and Beverage Business)

71

-

4

-

(1)

3

74

Total (Group)

1,563

-

52

-

(9)

43

1,606

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. On March 1, 2024, an absorption-type merger was conducted between Adastria, which is the surviving company,
and Gate Win Co., Ltd., which was dissolved. Changes due to this merger are shown in this table.
4. The number of stores of zetton, inc. includes the stores of its consolidated subsidiary ZETTON, INC. (USABusiness).

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.

- 13 -