Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2021
(Nine Months Ended November 30, 2020)[Japanese GAAP]
December 29, 2020

Company name: Adastria Co., Ltd.
Listing: TSE 1st section
Stock code:
2685
URL: https://www.adastria.co.jp
Representative: Michio Fukuda, Chairman of the Board
Ryo Araya, Vice President,
Contact:
Deputy Executive General Manager, General Headquarters of Management Tel: +81-3-5466-2050
Scheduled date of filing of Quarterly Report:
January 14, 2021
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, 2020 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, 2021
(March 1, 2020 – November 30, 2020)(1) Consolidated results of operations (cumulative)
Net sales
Million yen(Percentages represent year-on-year changes)
Net income
Ordinary profit
attributable to ownersof the parent

Operating profit%

Million yen%

Million yen%

Million yen

Nine months ended Nov. 30, 2020
132,833 (19.1)
1,108 (90.7)
3,116 (73.7)
Nine months ended Nov. 30, 2019
164,280
1.2
11,970110.0
11,871 103.5
Note: Comprehensive income
Nine months ended Nov. 30, 2020:
939 million yen (down 86.5%)
Nine months ended Nov. 30, 2019: 6,951 million yen (up 144.7%)
Net income per share

Diluted net income per share

Yen

Yen

Nine months ended Nov. 30, 2020
Nine months ended Nov. 30, 201926.13
146.67

%

1,228
6,908

(82.2)
124.2-(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of Nov. 30, 2020
102,204
As of Feb. 29, 2020
97,924
Reference: Shareholders’ equity As of Nov. 30, 2020: 54,105 million yen

54,10557,041
As of Feb. 29, 2020: 57,041 million yen

52.9
58.3

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 29, 2020
25.00
Fiscal year ending Feb. 28, 2021
15.00
Fiscal year ending Feb. 28, 2021 (forecast)
Note: Revision to the most recently announced dividend forecast: None

-

25.00

50.00

25.00

40.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2021 (March 1, 2020 – February 28, 2021)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen

Full year
189,000(15.0)(1,000)(1,100)Note: Revision to the most recently announced consolidated forecast: None

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

%

Million yen-(2,200)%Yen-(46.69)

* 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: 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 Nov. 30, 2020:
48,800,000 shares
As of Feb. 29, 2020:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of Nov. 30, 2020:
2,801,825 shares

As of Feb. 29, 2020:

1,679,557 shares

3) Average number of shares outstanding during the period
Nine months ended Nov. 30, 2020: 47,030,649 shares

Nine months ended Nov. 30, 2019: 47,102,625 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 3Q Financial Results for February 2021 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

3. Supplementary Information

9(1) Sales for Brands and Regions

9(2) Sales for Merchandise Categories

9(3) Number of Stores

10

- 1 -

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated results(Million yen)First nine months of FY2/20
First nine months of FY2/21(Mar. 1, 2019 – Nov. 30, 2019) (Mar. 1, 2020 – Nov. 30, 2020)

Net sales

164,280

132,833

YoY change(Amount)(31,447)

YoY change(%)

Operating profit

11,9701,108(10,862)(90.7)

Ordinary profit

11,871

3,116(8,754)(73.7)Net income attributableto owners of the parent

6,908

1,228

(5,679)(82.2)(19.1)

Consolidated net sales in the first nine months (March 1 – November 30, 2020) decreased 19.1% year-on-year to132,833 million yen, operating profit decreased 90.7% to 1,108 million yen, ordinary profit decreased 73.7% to
3,116 million yen, and net income attributable to owners of the parent decreased 82.2% to 1,228 million yen.
Sales in Japan were 19.0% lower than one year earlier as the number of customers visiting our stores decreased
sharply because people stayed home due to the COVID-19 pandemic and retail facilities closed or shortened
operating hours. All of our physical stores in Japan were closed for about two weeks from late April.
Subsequently, stores reopened in stages in each region of Japan as the emergency declaration was lifted.
Although the effect of the downturn in demand related to going out continued, sales at physical stores in Japan
improved with each passing month. Demand picked up significantly in the third quarter as temperatures dropped
and demand related to going out recovered. However, the outlook for personal consumption remained uncertain,
because the number of customers visiting our stores decreased again in late November due to increasing
number of cases in COVID-19 infections.
E-commerce sales were 23.8% higher than in the first nine months of the previous fiscal year. One reason was the
temporary suspension of operations of the “.st” e-commerce site that started on August 8, 2019. The big increase
was also attributable to initiatives to strengthen measures of attracting customers on “.st” as people stayedhome for safety. A strong performance of BUZZWIT Co., Ltd., which sells merchandise exclusively online, also
contributed to the growth of e-commerce sales.
In other countries, sales were down in Hong Kong, South Korea and the United States because of COVID-19.
Sales in Taiwan, where the impact of COVID-19 was relatively small, were about the same as one year earlier.
Sales increased in China because of strong sales at the niko and … Shanghai flagship store.
We opened 82 stores (including 6 overseas) and closed 32 stores (including 8 overseas), resulting in a total of
1,442 stores (including 75 overseas) at the end of the first nine months of this fiscal year.
In this challenging environment, we suppressed discount sales by providing merchandize “in a timely manner, atappropriate prices and in suitable volumes.” However, the gross profit margin decreased 1.4 percentage points
from one year earlier to 55.7% due to promotions to sell inventories of spring apparel.
Selling, general and administrative expenses were 8,993 million yen lower than one year earlier. One reason wasa decrease in personnel expenses and store rents because of store closings and reduced operating hours. Thisdecrease was also attributable to the reduction of other expenses, such as by reducing credit card fees, holding
down promotional expenses, limiting business trips and canceling events. However, due to the significant
decrease in sales, the ratio of SG&A expenses to sales increased 5.0 percentage points to 54.8%, resulting in a
6.5 percentage point decrease in the operating margin to 0.8%. There was non-operating income of 1,658 million
yen due to the receipt of subsidies for employment adjustment associated with temporary store closings caused
by COVID-19.
There were extraordinary losses of 226 million yen for the impairment of store assets and 133 million yen forprovision for loss on business liquidation of our subsidiary in South Korea (Adastria Korea Co., Ltd.).

- 2 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year(2) Explanation of Financial Position
Total assets increased 4,279 million yen from as of February 29, 2020 to 102,204 million yen as of November 30,
2020. Cash and deposits decreased 7,240 million yen but there were increases of 5,815 million yen in notes andaccounts receivable-trade, 3,922 million yen in inventories and 1,094 million yen in other (software, etc.) underintangible assets.
Liabilities increased 7,215 million yen to 48,099 million yen. There was a decrease of 1,823 million yen inelectronically recorded obligations-operating but there were increases of 4,029 million yen in notes and accounts
payable-trade, 4,006 million yen in accounts payable-other and 1,272 million yen in income taxes payable.
Net assets decreased 2,936 million yen to 54,105 million yen. This was mainly due to an increase of 1,969
million yen in treasury shares (decrease in total assets) and a decrease of 677 million yen in retained earnings.
(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 July 16,
2020.

- 3 -

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
Third quarter of FY2/21(As of Nov. 30, 2020)

FY2/20(As of Feb. 29, 2020)
AssetsCurrent assets
Cash and deposits

26,462

19,222

Notes and accounts receivable-trade

9,954

15,770Inventories

15,00818,931

Other

1,877

1,743

Allowance for doubtful accounts

(68)

(113)

53,23455,554

5,349

5,285

Other, net

9,915

10,665

Total property, plant and equipment

15,265

15,950

478

355

Other

5,799

6,894

Total intangible assets

6,278

7,250

Total current assets
Non-current assets
Property, plant and equipment
Store interior equipment, net

Intangible assets
Goodwill

Investments and other assets
Investment securities

242

257

Leasehold and guarantee deposits

15,95915,498

Other

7,212

8,003

Allowance for doubtful accounts

(268)

(310)

Total investments and other assets

23,14623,44944,68946,65097,924102,204

7,900

11,929Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating

9,020

7,197

Accounts payable-other

11,50015,506

Income taxes payable

3,130

4,403

Provision for bonuses

2,188

1,159

Provision for point card certificates

1,937

1,419

-

132

279

428

Provision for loss on business liquidation
Other provisions
Other

1,505

2,069

Total current liabilities

37,462

44,246

Non-current liabilities
Provisions

396

304

Other

3,024

3,548

Total non-current liabilities

3,421

3,852

40,88348,099Total liabilities- 4 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

(Million yen)
Third quarter of FY2/21(As of Nov. 30, 2020)

FY2/20(As of Feb. 29, 2020)
Net assets
Shareholders’ equity
Share capital

2,660

2,660

Capital surplus

7,213

7,213

Retained earnings

51,07950,402

Treasury shares(4,372)(6,342)

Total shareholders’ equity

56,58053,932

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

(0)

(2)

6

(28)

Foreign currency translation adjustment

454

202

Total accumulated other comprehensive income

461

172

Total net assets
Total liabilities and net assets- 5 -57,041

54,10597,924102,204

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 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 FY2/20(Mar. 1, 2019 – Nov. 30, 2019)(Million yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)

Net sales

164,280

132,833

Cost of sales

70,47558,883Gross profit

93,80573,949Selling, general and administrative expenses

81,834

72,841

Operating profit

11,9701,108Dividend income

132Gain on valuation of derivatives

29-

Non-operating income

Subsidies for employment adjustment

-

1,658

Other

293

587

Total non-operating income

336

2,247

Interest expenses

89

104

Foreign exchange losses

308

-

-

81

Non-operating expenses

Loss on valuation of derivatives
Other

38

52

Total non-operating expenses

435

238

11,871

3,116

1,584

226

Loss on disaster

23-

Loss on sales of investment securities

75-

Ordinary profit
Extraordinary losses
Impairment loss

Provision for loss on business liquidation-

133

Total extraordinary losses

1,684

360

Net income before income taxes

10,187

2,756

Income taxes-current

3,933

1,363

Income taxes-deferred

(655)

163

Total income taxes

3,278

1,527

Net income

6,908

1,228

Net income attributable to owners of the parent

6,908

1,228

- 6 -

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY2/20(Mar. 1, 2019 – Nov. 30, 2019)(Million yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)

6,908

1,228

9

(2)

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

27

(34)

Foreign currency translation adjustment

6

(252)

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

- 7 -

43

(289)

6,951

939

6,951

939

-

-

Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Adastria has purchased 1,162,000 shares of its own shares following the resolution approved at the Board of
Directors meeting held on October 15, 2020. Mainly for this reason, treasury shares increased by 1,969 million
yen during the first nine months of the fiscal year to 6,342 million yen at the end of the third quarter.

- 8 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

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

First nine months of FY2/21
Sales (million yen)

YoY change (%)

Composition (%)

GLOBAL WORK

24,51518.5(19.9)

niko and ...

18,813

14.2(20.6)LOWRYS FARM

14,31210.8(18.9)STUDIO CLIP

13,683

10.3(18.5)LEPSIM

8,172

6.2(24.0)JEANASIS

6,956

5.2

(20.8)BAYFLOW

6,096

4.6

(16.2)RAGEBLUE

3,824

2.9

(30.4)

Others (Note 3)

18,372

13.7(20.2)(20.4)

Total (Adastria)

114,747

86.4

BUZZWIT Co., Ltd.

4,696

3.5

28.5

ELEMENT RULE Co., Ltd. (Note 3)

5,705

4.3

(19.3)

Other consolidated subsidiaries

224

0.2

606.9

125,374

94.4(19.0)

1,829

1.4(29.1)

China

815

0.6

142.6

Taiwan

1,859

1.4

3.5

491

0.4

(43.7)

Total (Japan)
Hong Kong

South Korea
USA

Notes:

2,462

1.8(36.3)

Total (Overseas)

7,458

5.6

(21.1)

Total (Group)

132,833100.0(19.1)

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. On March 1, 2020, Adastria conducted an absorption-type split where the PAS TIERRA business unit of Adastria
was divested and then transferred to consolidated subsidiary ELEMENT RULE Co., Ltd. As a result, the sales ofthis brand, which was included in “others” for Adastria in prior years, are included in the sales of ELEMENTRULE beginning with the first quarter of the fiscal year ending in February 2021.

(2) Sales for Merchandise Categories
Category

First nine months of FY2/21
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

18,61014.0(20.5)

Lady’s apparel (bottoms, tops)

84,27063.4(22.9)

Others
Total
Notes:

29,951

22.6

(4.9)

132,833100.0(19.1)

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.

- 9 -Adastria Co., Ltd. (2685) Summary of 3Q Financial Results for February 2021 Fiscal Year

(3) Number of Stores
Number of storesFirst nine months of FY2/21
Brand / region

As of Feb.
29, 2020

GLOBAL WORK

Absorptiontype split(Note 3)
210-

niko and ...

144-

LOWRYS FARM136

STUDIO CLIP

183

LEPSIM

OpenedIncrease/decrease

ClosedChanged

As of
Nov. 30,
2020

3

(1)

(2)

-

210

3

-

(2)

1

145

-

-

-

-

-

136

-

4

-

(1)

3

186

128

-

-

-

(2)

(2)

126

JEANASIS

73

-

2

-

(1)

1

74

BAYFLOW

54

-

5

-

(1)

4

58

RAGEBLUE

54

-

1

-

(3)

(2)

52

Others

247

(3)

32

1

(7)

23

270

1,229

(3)

50

-

(19)

28

1,257

BUZZWIT Co., Ltd.

7

-

7

-

-

7

14

ELEMENT RULE Co., Ltd.

77

3

17

-

(4)

16

93

Other consolidated
subsidiaries

2

-

2

-

(1)

1

3

1,315

-

76

-

(24)

52

1,367

16

-

-

-

(2)

(2)

14

China

1

-

1

-

-

1

2

Taiwan

37

-

4

-

-

4

41

South Korea

13

-

-

-

(6)

(6)

7

Total (Adastria)

Total (Japan)
Hong Kong

USA

Notes:

10

-

1

-

-

1

11

Total (Overseas)

77

-

6

-

(8)

(2)

75

Total (Group)

1,392

-

82

-

(32)

50

1,442

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 figures in “Absorption-type split” show the change in the number of stores resulting from theabsorption-type split conducted on March 1, 2020, where the PAS TIERRA business unit of Adastria was divested
and then transferred to consolidated subsidiary ELEMENT RULE Co., Ltd.

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.

- 10 -