Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 29, 2024
(Six Months Ended August 31, 2023)[Japanese GAAP]
September 29, 2023

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, Head of Corporate Planning OfficeTel: +81-3-5466-2060
Scheduled date of filing of Quarterly Report:
October 13, 2023
Scheduled date of payment of dividend:
October 23, 2023
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 September 29, 2023 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 29, 2024
(March 1, 2023 – August 31, 2023)(1) Consolidated results of operations (cumulative)
Net sales
Million yen

Six months ended Aug. 31, 2023
Six months ended Aug. 31, 2022
Note: Comprehensive income(Percentages represent year-on-year changes)
Net income
Ordinary profit
attributable to ownersof the parent

Operating profit%

Million yen%

Million yen%

Million yen

132,89618.0
10,311
85.1
10,63972.8
112,578
21.6
5,570
781.6
6,157 296.5
Six months ended Aug. 31, 2023:
8,224 million yen (up 50.3%)
Six months ended Aug. 31, 2022:
5,472 million yen (up 774.4%)
Net income per share

Diluted net income per share

Yen

Yen

Six months ended Aug. 31, 2023
Six months ended Aug. 31, 2022

156.15
85.96

%

7,094
3,893

82.2
767.3

-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of Aug. 31, 2023
121,523
As of Feb. 28, 2023
111,392
Reference: Shareholders’ equity As of Aug. 31, 2023: 66,486 million yen

67,956
60,762As of Feb. 28, 2023: 59,407 million yen

54.7
53.3

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2023
25.00
Fiscal year ending Feb. 29, 2024
35.00
Fiscal year ending Feb. 29, 2024 (forecast)
Note: Revision to the most recently announced dividend forecast: Yes

-

35.00

60.00

-

45.00

80.00

3. Consolidated Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 – February 29, 2024)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen

Full year
270,000
11.3
18,00056.3
18,200Note: Revision to the most recently announced consolidated forecast: Yes(Percentages represent year-on-year changes)
Net income attributable to Net income perowners of the parent
share

%

51.3

Million yen

12,000

%

59.1

Yen

263.65

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -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: 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. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 10 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 Aug. 31, 2023:
48,800,000 shares
As of Feb. 28, 2023:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of Aug. 31, 2023:
3,284,608 shares

As of Feb. 28, 2023:

3,449,391 shares

3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2023:
45,432,240 shares

Six months ended Aug. 31, 2022:

45,294,805 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 4 regarding preconditions or other related matters for the forecast shown above.

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income7(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

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

10

Changes in Accounting Policies

10

Additional Information

10

Segment Information

10

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 2Q Financial Results for February 2024 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated results(Million yen)First six months of FY2/23
First six months of FY2/24(Mar. 1, 2022 – Aug. 31, 2022) (Mar. 1, 2023 – Aug. 31, 2023)
112,578

132,896

YoY change(Amount)
20,318Operating profit

5,570

10,311

4,741

85.1

Ordinary profit

6,157

10,639

4,481

72.8

Net income attributableto owners of the parent

3,893

7,094

3,200

82.2

Net sales

YoY change
(%)
18.0

During the first half (March 1 - August 31, 2023) of the current fiscal year, economic and social activity in Japan
continued to return to normal due to the significant easing of restrictions on activities and foreign visitors
following the downgrading of the pandemic’s categorization by the Japanese government. In addition, consumer
spending is continuing to recover because of the slow improvement in personal income and other reasons. The
desire of consumers to buy apparel and other fashion products remains strong. The outlook for the economy isstill uncertain because of the prolonged Ukraine conflict, high prices of resources and energy, foreign exchange
rate movements, worldwide inflation 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
Develop models in Mainland China and cultivate
Southeast Asia
Establish a food and beverage business and create new
appealFirst half consolidated net sales increased 18.0% year-on-year to 132,896 million yen, operating profit increased
85.1% to 10,311 million yen, ordinary profit increased 72.8% to 10,639 million yen, and net income attributableto owners of the parent increased 82.2% to 7,094 million yen.
In the Apparel and Sundry Goods-related business, sales in Japan were up 16.0% from one year earlier.
Opportunities for going out increased steadily during the first half and the rising popularity of casual apparel also
contributed to sales growth. Strong sales were also due to the ability to sell merchandise that reflect seasons andnew fashion trends, the successful launch of hit products, and revisions to merchandise for more added value.
There were many initiatives involving our digital strategy. Major activities include promotions linking theAdastria “Dot-ST” e-commerce website with physical stores, the sale of merchandise using popular anime andother characters and collaborations with other companies, and more merchandise of other companies to enlarge
the lineup of products. As a result, the number of members of “Dot-ST” is now 16.5 million, 1 million more thanat the end of the previous fiscal year. E-commerce sales increased 14.1% in part because subsidiary BUZZWIT
Co., Ltd., which operates an e-commerce business, acquired and absorbed OPEN AND NATURAL Inc., achildren’s clothing e-commerce company that has been a consolidated subsidiary since the second quarter of theprevious fiscal year.
In Mainland China, sales increased 126.5% because of the decline in the impact of the pandemic compared withthe first half of the previous fiscal year and the reopening of stores. In Taiwan, sales increased 51.2% because of
the smaller impact of the pandemic compared with one year earlier and the opening of stores that use themulti-brand strategy. In the United States, sales increased 10.0% despite a small slowdown in sales in thewholesale sector caused by uncertainty about the economic outlook. In Hong Kong, sales increased 27.7% mainly- 2 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Yearbecause the pandemic held down sales one year earlier and performance in the current fiscal year benefited frommeasures to reduce sales of merchandise at discounts. As a result, total overseas sales were up 37.7%. Alloverseas sales information is based on conversions to yen of sales in local currencies.
In the Other segment (the food and beverage business), the economic climate is challenging because of the highcost of raw materials and utilities, the labor shortage and other adversities. Despite these challenges, sales
increased 29.2% due to a slow recovery in the number of customers.
Profitability improved despite the continuing negative effects of the yen’s depreciation and the rising cost of raw
materials. Earnings are benefiting from the control of inventories by supplying merchandise at the right times,
prices and volumes, measures to limit sales of merchandise at discounts, and revisions of prices to maintain theproper balance with the value of merchandise. In addition, there was an improvement in the gross profit margin of
the Apparel and Sundry Goods-related business as a result of the temporary expiration of points due to a revisionof our loyalty point program and of higher profitability in the overseas business. In the Other segment (the foodand beverage business), the gross profit margin declined mainly because of the high cost of raw materials, but theconsolidated gross profit margin improved 0.5 percentage points from one year earlier to 56.3%.
Selling, general and administrative expenses increased mainly because of higher salaries and other benefits for
employees and increases in personnel expenses, store leasing expenses, credit card fees and other items alongwith sales growth. However, due to the increase in sales, the SG&A to sales ratio decreased 2.2 percentage points
from one year earlier to 48.6% and operating profit increased 85.1%.
Non-operating income includes foreign exchange gains of 210 million yen and there was an extraordinary loss of
53 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 were 126,478 million yen and segment profit
was 10,581 million yen.
We opened 61 stores (including 16 overseas) and closed 18 stores (including 1 overseas), resulting in a total of
1,478 stores (including 110 overseas) at the end of the first half of the fiscal year.
2) Other (Food and Beverage Business)
Sales were 6,441 million yen and segment profit was 57 million yen.
The number of stores at the end of the first half was 74, a result of opening of 4 stores and closing of 4 stores.
(2) Explanation of Financial Position
1) Balance sheet position
Total assets increased 10,131 million yen from as of February 28, 2023 to 121,523 million yen as of August 31,
2023. There were increases of 4,919 million yen in cash and deposits, 1,630 million yen in notes and accounts
receivable-trade, and 1,568 million yen in store inventories.
Liabilities increased 2,938 million yen to 53,567 million yen. There were increases of 2,770 million yen in notes
and accounts payable-trade and 808 million yen in income taxes payable.
Net assets increased 7,193 million yen to 67,956 million yen. This was mainly due to a decrease of 491 million
yen in treasury shares (increase in net assets), and increases of 5,496 million yen in retained earnings and 570
million yen in deferred gain or losses on hedges.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of August 31, 2023 amounted to 21,270 million yen, or
4,927 million yen more than as of February 28, 2023.
A summary of cash flows from each activity during the first half of the current fiscal year is as follows:- 3 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

Cash flows from operating activities
Net cash provided by operating activities totaled 11,795 million yen (compared with 5,393 million yen provided
in the same period of the previous fiscal year). This was mainly due to income before income taxes of 10,585
million yen and depreciation of 4,504 million yen, while income taxes paid of 2,612 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 4,769 million yen (compared with 3,734 million yen used in the same
period of the previous fiscal year). This was mainly due to the payments of 3,251 million yen for the purchase ofproperty, plant and equipment and 1,472 million yen for the purchase of intangible assets.
Cash flows from financing activities
Net cash used in financing activities totaled 2,454 million yen (compared with 2,491 million yen used in the same
period of the previous fiscal year). This was mainly due to repayments of long-term borrowings of 200 million
yen, cash dividends paid of 1,597 million yen and repayments of lease obligations of 628 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
As is explained in this earnings report, sales and earnings during the first half were strong. Due to the outlook forfiscal year sales and earnings to be higher than in the forecast announced on April 4, 2023, the forecast for the
fiscal year ending in February 2024 has been revised. More information is in the September 29, 2023 press
release concerning this revision posted on the corporate website.

- 4 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
Second quarter of FY2/24(As of Aug. 31, 2023)

FY2/23(As of Feb. 28, 2023)
AssetsCurrent assets
Cash and deposits

16,38021,299Notes and accounts receivable-trade12,17113,801Inventories

24,67926,248

Other

2,622

2,460

Allowance for doubtful accounts

(81)

(92)

55,772

63,718Store interior equipment, net

6,000

6,736

Other, net

16,064

17,342

Total property, plant and equipment

22,06524,078Goodwill

1,331

1,219

Other

10,577

11,005

Total intangible assets

11,908

12,224

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

Intangible assets

Investments and other assets
Investment securities

1,108

1,166

Leasehold and guarantee deposits

13,545

13,690

Other

7,289

6,942

Allowance for doubtful accounts

(298)

(298)

Total investments and other assets

21,64521,501

55,61957,805111,392

121,523

Notes and accounts payable-trade

13,28016,050Electronically recorded obligations-operating

Total non-current assets
Total assets
Liabilities
Current liabilities

6,990

6,441

Short-term borrowings

197-

Current portion of long-term borrowings

375

423

Accounts payable-other

12,114

11,702

Income taxes payable

2,970

3,779

Provision for bonuses

2,112

2,736

160

108

Provision for point card certificates
Other provisions

779

299

Other

5,008

4,744

Total current liabilities

43,98946,285554

507

Non-current liabilities
Long-term borrowings
Provisions

-

62

Other

6,084

6,712

Total non-current liabilities

6,639

7,281

50,62953,567

Total liabilities- 5 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

(Million yen)
Second quarter of FY2/24(As of Aug. 31, 2023)

FY2/23(As of Feb. 28, 2023)
Net assets
Shareholders’ equity
Share capital

2,660

2,660

Capital surplus

7,213

7,213

Retained earnings

55,96861,464

Treasury shares(7,286)(6,795)

Total shareholders’ equity

58,55564,542

95

134

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

(120)

450

Foreign currency translation adjustment

877

1,358

Total accumulated other comprehensive income

852

1,943

Non-controlling interests

1,355

1,470

Total net assets

60,762

67,956111,392

121,523

Total liabilities and net assets- 6 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY2/23(Mar. 1, 2022 – Aug. 31, 2022)(Million yen)First six months of FY2/24(Mar. 1, 2023 – Aug. 31, 2023)

Net sales

112,578

132,896

Cost of sales

49,79758,034Gross profit

62,78074,861

Selling, general and administrative expenses

57,21064,549Operating profit

5,570

10,311Non-operating income
Foreign exchange gains

460

210

Insurance claim income-

101

Subsidy income

182

22

Subsidies for employment adjustment

37

-

Other

140

155

Total non-operating income

819

489

Interest expenses

85

123

Loss on valuation of derivatives

106-

Non-operating expenses

Other

40

38

Total non-operating expenses

232

161

6,157

10,6391053

Ordinary profit
Extraordinary losses
Impairment loss
Total extraordinary losses

1053

Net income before income taxes

6,146

10,585

Income taxes-current

1,962

3,398

Income taxes-deferred

1

53

Total income taxes

1,963

3,452

Net income

4,183

7,133

Net income attributable to non-controlling interests
Net income attributable to owners of the parent

- 7 -

289

39

3,893

7,094

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY2/23(Mar. 1, 2022 – Aug. 31, 2022)(Million yen)First six months of FY2/24(Mar. 1, 2023 – Aug. 31, 2023)

4,183

7,133

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

79

38

684

570

Foreign currency translation adjustment

526

481

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

- 8 -

1,289

1,090

5,472

8,224

5,091

8,117

381

106

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY2/23(Mar. 1, 2022 – Aug. 31, 2022)(Million yen)First six months of FY2/24(Mar. 1, 2023 – Aug. 31, 2023)

Net income before income taxes

6,146

10,585

Depreciation

3,935

4,504

Cash flows from operating activities

Impairment loss

10

53

Amortization of goodwill

121

112

Interest and dividend income

(6)

(13)

Interest expenses

85

123

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point card certificates

5

10

242

615

(139)

(51)

Decrease (increase) in trade receivables(2,072)(1,521)

Decrease (increase) in inventories(1,690)(1,331)

Increase (decrease) in trade payables

2,408

2,092

Increase (decrease) in accounts payable-other

(175)

(999)

Increase (decrease) in accrued consumption taxes

(59)

227

Other, net

(498)

103

Subtotal

8,314

14,511

Interest and dividends received

8

19

(85)

(123)

(2,843)(2,612)

5,393

11,795Purchase of property, plant and equipment(2,712)(3,251)

Purchase of intangible assets(1,614)(1,472)(20)(9)

Payments of leasehold and guarantee deposits

(415)

(522)

Proceeds from refund of leasehold and guarantee deposits
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net

1,890

572

(839)

-

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of investment securities

Net cash provided by (used in) investing activities

(23)

(84)

(3,734)(4,769)

(165)

(200)

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

200

200

Repayments of long-term borrowings

(521)

(200)

Dividends paid

(1,369)(1,597)Purchase of treasury shares

(92)

(35)

Repayments of lease obligations

(493)

(628)

Other, net

(49)

8

(2,491)(2,454)609

355

Net increase (decrease) in cash and cash equivalents

(222)

4,927

Cash and cash equivalents at beginning of period

16,863

16,343

Cash and cash equivalents at end of period

16,64021,270Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents- 9 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

(4) 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 second quarter of the current fiscal year, OPEN AND NATURAL Inc., which was a consolidated subsidiaryof Adastria, was excluded from the scope of consolidation since this company was absorbed by BUZZWIT Co.,
Ltd., which became the surviving company, after which OPEN AND NATURAL was dissolved as of July 1, 2023.
Changes in Accounting Policies
Application of the Implementation Guidance on Accounting Standard for Measurement of Fair Value
The Company has applied the Implementation Guidance on Accounting Standard for Measurement of Fair Value(Accounting Standards Board of Japan (ASBJ) Guidance No. 31, June 17, 2021) from the beginning of the firstquarter of the current fiscal year, and has applied the new accounting policies set forth by the Implementation
Guidance on Accounting Standard for Measurement of Fair Value prospectively in accordance with thetransitional treatment in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for
Measurement of Fair Value. There is no effect of the application of this guidance on the quarterly consolidated
financial statements.
Additional Information
Accounting treatment and disclosure method when the group tax sharing system is used
Beginning with the first quarter of the current fiscal year, Adastria and some of its consolidated subsidiaries inJapan have changed from the single-entity tax system to the group tax sharing system. Due to this change, theaccounting treatment and disclosure of corporate income taxes, local corporate income taxes and tax effectaccounting are as prescribed in Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing
System (Practical Issues Task Force (PITF) No. 42, August 12, 2021).
Segment Information
I. First six months of FY2/23 (Mar. 1, 2022 – Aug. 31, 2022)

1. Information related to net sales and profit or loss for each reportable segment(Million yen)
Reportablesegment
Apparel andSundryGoods-related
Business

Other(Note 1)

Amounts shown onquarterly
consolidated
statement of income(Note 3)Adjustment(Note 2)Total

Net sales
External sales
Inter-segment sales and transfers
Total

107,610

4,968

112,578-

112,578

0

17

18

(18)

-

107,610

4,985

112,596(18)

112,578

Segment profit
5,869
288
6,157
6,157
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 is an adjustment to unrealised profit related to inter-segment transactions.

- 10 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

3. The segment profit is consistent with the ordinary profit of the Quarterly Consolidated Statement of Income.
4. The segment profit 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 six months of FY2/24 (Mar. 1, 2023 – Aug. 31, 2023)

1. Information related to net sales and profit or loss for each reportable segment(Million yen)
Reportablesegment
Apparel andSundryGoods-related
Business

Other(Note 1)

Amounts shown onquarterly
consolidated
statement of income(Note 3)Adjustment(Note 2)Total

Net sales
External sales
Inter-segment sales and transfers
Total

126,477

6,418

132,896-

132,896

1

22

23

(23)

-

126,478

6,441

132,920(23)

132,896

Segment profit
10,581
57
10,63910,639Notes: 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 is an adjustment to unrealized profit related to inter-segment transactions.
3. The segment profit is consistent with the ordinary profit of the Quarterly Consolidated Statement of Income.
4. The segment profit 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.

- 11 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

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

First six months of FY2/24

YoY change (%)

Sales (million yen)

Composition (%)

GLOBAL WORK

25,231

19.0

niko and ...

16,321

12.3

13.0

studio CLIP

11,2158.4

13.8

LOWRYS FARM

11,141

8.4

11.2

LEPSIM

6,735

5.1

7.5

JEANASiS

5,680

4.3

20.7

BAYFLOW

5,277

4.0

8.9

16.9

LAKOLE

5,263

4.0

48.6

Others17,932

13.4

14.5

Total (Adastria)

104,798

78.9

15.3

BUZZWIT Co., Ltd. (Note 3)

5,526

4.2

35.3

ELEMENT RULE Co., Ltd.

5,311

4.0

7.8

427

0.2

312.6

116,063

87.3

16.0

Hong Kong

1,745

1.3

27.7

Mainland China

1,968

1.5

126.5

Taiwan

2,769

2.1

51.2

Other consolidated subsidiaries
Total (Japan)

Thailand
USA

83

0.1

-

3,846

2.9

10.0

Total (Overseas)
Total (Apparel and Sundry Goods-related
Business)
Zetton, Inc. (Note 4)

10,4137.9

37.7

126,477

95.2

17.5

6,203

4.7

32.4

ADASTRIA eat Creations Co., Ltd.

215

0.1

(24.1)

Total (Food and Beverage Business)

6,418

4.8

29.2

Total (Group)

132,896

100.0

18.0

Notes:

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 BUZZWIT Co., Ltd. include sales of its consolidated subsidiary OPEN AND NATURAL, Inc. An
absorption-type merger was carried out with BUZZWIT Co., Ltd. as the surviving company and OPEN AND
NATURAL, Inc. as the dissolving company as of 1 July 2023.
4. Sales of Zetton, Inc. include sales of its consolidated subsidiary ZETTON, INC (USA Business).

(2) Sales for Merchandise Categories
Category

First six months of FY2/24

YoY change (%)

Sales (million yen)

Composition (%)

Men’s apparel (bottoms, tops)

19,60414.8

16.0

Lady’s apparel (bottoms, tops)

80,628

60.7

16.2

Others

32,66324.5

24.1

Notes:

132,896
100.0
Total
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.

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18.0

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2024 Fiscal Year

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

GLOBAL WORKFirst six months of FY2/24

As of Feb.
28, 2023

OpenedChangedClosed

205

8

-

(2)

Increase/decrease6

As of Aug.
31, 2023
211

niko and ...

141

2

-

(1)

1

142

studio CLIP

174

7

-

(1)

6

180

LOWRYS FARM

129

2

-

(2)

-

129

LEPSIM

114

1

-

(1)

-

114

JEANASiS

71

-

-

-

-

71

BAYFLOW

61

1

-

(1)

-

61

LAKOLE

63

8

-

-

8

71

Others

264

6

-

(4)

2

266

Total (Adastria)

1,222

35

-

(12)

23

1,245

BUZZWIT Co., Ltd. (Note 3)

29

1

-

(2)

(1)

28

ELEMENT RULE Co., Ltd.

81

5

-

(3)

2

83

Other consolidated subsidiaries

8

4

-

-

4

12

1,340

45

-

(17)

28

1,368

Total (Japan)
Hong Kong

21

1

-

(1)

-

21

Mainland China

13

1

-

-

1

14

Taiwan

52

12

-

-

12

64

Thailand

-

1

-

-

1

1

USA
Total (Overseas)
Total (Apparel and Sundry
Goods-related Business)
Zetton, Inc. (Note 4)
ADASTRIA eat Creations Co., Ltd.

9

1

-

-

1

10

95

16

-

(1)

15

110

1,435

61

-

(18)

43

1,478

71

4

-

(1)

3

74

3

-

-

(3)

(3)

-

Total (Food and Beverage Business)

74

4

-

(4)

-

74

Total (Group)

1,509

65

-

(22)

43

1,552

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 number of stores of BUZZWIT Co., Ltd. includes sales of its consolidated subsidiary OPEN AND NATURAL
Inc. An absorption-type merger was carried out with BUZZWIT Co., Ltd. as the surviving company and OPEN
AND NATURAL, Inc. as the dissolving company as of 1 July 2023.
4. The number of stores of Zetton, Inc. includes sales of its consolidated subsidiary ZETTON, INC (USA Business).

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 -