Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2022
(Three Months Ended May 31, 2021)[Japanese GAAP]
June 30, 2021

Company name: Adastria Co., Ltd.
Stock code:
2685
Representative: Michio Fukuda, Chairman of the Board
Ryo Araya, Vice President,
Contact:
General Manager, Corporate Planning Division
Scheduled date of filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting:

Listing: TSE 1st section
URL: https://www.adastria.co.jp

Tel: +81-3-5466-2060
July 15, 2021
Yes
Yes (for investors)

Note: The original disclosure in Japanese was released on June 30, 2021 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, 2022
(March 1, 2021 – May 31, 2021)(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

Three months ended May 31, 2021
46,38739.4
624
961
Three months ended May 31, 2020
33,267 (40.9)(4,758)(4,822)
Note: Comprehensive income
Three months ended May 31, 2021:
421 million yen (-%)
Three months ended May 31, 2020: (3,653) million yen (-%)
Net income per share

Diluted net income per share

Yen

Yen

Three months ended May 31, 2021
Three months ended May 31, 2020

5.98
(78.12)%Million yen

-

%

269
(3,681)--(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of May 31, 2021
92,888
As of Feb. 28, 2021
95,449Reference: Shareholders’ equity As of May 31, 2021: 50,264 million yen

50,26450,701
As of Feb. 28, 2021: 50,701 million yen

54.1
53.1

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2021
15.00
Fiscal year ending Feb. 28, 2022
Fiscal year ending Feb. 28, 2022 (forecast)
25.00
Note: Revision to the most recently announced dividend forecast: None

-

25.00

40.00

-

25.00

50.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 – February 28, 2022)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen

Full year
219,000
19.1
6,500
747.7
6,500
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

%

118.0

Million yen

3,800

%

Yen

-

84.14

* Notes(1) Changes in significant subsidiaries during the period (changes in specifie d subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: -Excluded: 1 (Adastria Korea Co., Ltd.)(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, 2021:
48,800,000 shares
As of Feb. 28, 2021:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of May 31, 2021:
3,551,732 shares

As of Feb. 28, 2021:

3,639,505 shares

3) Average number of shares outstanding during the period
Three months ended May 31, 2021: 45,176,442 shares

Three months ended May 31, 2020: 47,128,104 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 abov e.

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 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 1Q Financial Results for February 2022 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated results(Million yen)First three months of FY2/21(Mar. 1, 2020 – May 31, 2020)

First three months of FY2/22(Mar. 1, 2021 – May 31, 2021)

Net sales

33,267

46,387

YoY change(Amount)
13,120Operating profit(4,758)

624

5,382

-

Ordinary profit(4,822)

961

5,783

-

Net income attributableto owners of the parent(3,681)

269

3,951

-

YoY change
(%)
39.4

Consolidated net sales in the first quarter (March 1 – May 31, 2021) increased 39.4% year-on-year to 46,387
million yen, operating profit was 624 million yen (operating loss of 4,758 million yen in the same period of theprevious fiscal year), ordinary profit was 961 million yen (ordinary loss of 4,822 million yen in the same periodof the previous fiscal year), and net income attributable to owners of the parent was 269 million yen (net loss of
3,681 million yen in the same period of the previous fiscal year).
Retail facilities temporarily closed or shortened operating hours beginning in April in areas where a state of
emergency was declared because of an increase in COVID-19 cases. In 2020, all 1,248 Adastria physical stores inJapan closed for about two weeks beginning on April 25. In 2021, only 345 stores were closed due to thepandemic as of April 25. As a result, sales in Japan were 41.2% higher than in the first quarter of the previous
fiscal year.
E-commerce sales were 5.6% higher than in the first quarter of the previous fiscal year. This increase was due tocontinuous initiatives to strengthen measures for attracting customers on the Adastria e-commerce site. The
strong performance of BUZZWIT Co., Ltd., which sells merchandise exclusively online, also contributed to thegrowth of e-commerce sales.
Overseas sales increased 18.4%, including a 196.9% increase in sales on a yen basis in China resulting mainly
from the opening of the second niko and … store in Shanghai. Sales and earnings also increased in Hong Kong
and Taiwan, where the impact of the COVID-19 crisis was not significant. In the United States, store operating
hours and the number of customers in stores at the same time were restricted. Although there was only a small
recovery in sales because of these restrictions, losses in the United States decreased due to an increase in the EC
rate and improvements in sales promotion efficiency.
We opened 46 stores (including one overseas) and closed six stores (including two overseas), resulting in a totalof 1,440 stores (including 67 overseas) at the end of the first quarter of the fiscal year.
In this challenging environment, we kept inventories and discount sales in check by providing merchandize “in atimely manner, at appropriate prices and in suitable volumes.” As a result, the gross profit margin significantly
recovered from one year earlier to 56.9%, an increase of 3.7 percentage point.
Selling, general and administrative expenses increased because of higher personnel and store rents comparedwith one year earlier when stores closed and operating hours were reduced. Advertising and marketing expenses
increased for strengthening e-commerce operations. However, selling, general and administrative expenses
declined 12.0 percentage points from one year earlier to 55.5% of sales because of sales growth and there was an
operating margin of 1.3% compared with the loss one year earlier. There was non-operating income of 118
million yen due to the receipt of employment adjustment subsidies associated with temporary store closings
caused by COVID-19.
A gain of 81 million yen from the liquidation of the Korean subsidiary was recorded as extraordinary income,and an impairment loss of 127 million yen on stores was recorded as extraordinary loss.

- 2 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year(2) Explanation of Financial Position
Total assets decreased 2,561 million yen from as of February 28, 2021 to 92,888 million yen as of May 31, 2021.
There were increases of 1,531 million yen in notes and accounts receivable-trade, 2,438 million yen in
inventories and 462 million yen in store interior equipment, net but there was a decrease of 6,966 million yen in
cash and deposits.
Liabilities decreased 2,123 million yen to 42,624 million yen. There was an increase of 651 million yen inprovision for point card certificates but there were decreases of 1,117 million yen in accounts payable-other, 616
million yen in income taxes payable and 858 million yen in provision for bonuses.
Net assets decreased 437 million yen to 50,264 million yen. This was mainly due to a decrease of 282 million
yen in treasury shares (increase in net assets) and a decrease of 871 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 April 5,
2021.

- 3 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)First quarter of FY2/22(As of May 31, 2021)

FY2/21(As of Feb. 28, 2021)
AssetsCurrent assets
Cash and deposits

24,17917,212

Notes and accounts receivable-trade

9,751

11,282Inventories

15,71818,157

Other

1,995

1,577

Allowance for doubtful accounts

(74)

(101)

51,56948,128Store interior equipment, net

4,222

4,685

Other, net

10,354

10,169Total property, plant and equipment

14,577

14,854

113

98

Other

7,179

7,555

Total intangible assets

7,292

7,653

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

Intangible assets
Goodwill

Investments and other assets
Investment securities

260

464

Leasehold and guarantee deposits

15,162

15,117

Other

7,772

7,846

Allowance for doubtful accounts(1,184)(1,176)

Total investments and other assets

22,01022,25143,88044,76095,44992,888

9,548

9,683

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

7,360

6,844

Accounts payable-other

14,04012,923

Income taxes payable

4,151

3,534

Provision for bonuses

2,170

1,312

Provision for point card certificates

1,285

1,937

Other provisions

420

472

Other

2,077

2,515

Total current liabilities

41,05539,222

356

155

Other

3,336

3,246

Total non-current liabilities

3,692

3,402

44,74742,624Non-current liabilities
Provisions

Total liabilities- 4 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year

(Million yen)First quarter of FY2/22(As of May 31, 2021)

FY2/21(As of Feb. 28, 2021)
Net assets
Shareholders’ equity
Share capital

2,660

2,660

Capital surplus

7,213

7,213

Retained earnings

48,47947,608Treasury shares(7,917)(7,634)

Total shareholders’ equity

50,43549,846

0

2

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

34

25

Foreign currency translation adjustment

231

390

Total accumulated other comprehensive income

266

417

50,70150,264

95,44992,888

Total net assets
Total liabilities and net assets- 5 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 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 FY2/21(Mar. 1, 2020 – May 31, 2020)(Million yen)First three months of FY2/22(Mar. 1, 2021 – May 31, 2021)

Net sales

33,267

46,387

Cost of sales

15,58420,005Gross profit

17,683

26,382

Selling, general and administrative expenses

22,44125,757

Operating profit (loss)(4,758)624

Foreign exchange gains-

156

Gain on valuation of derivatives

14-

Subsidy income

62

65

Subsidies for employment adjustment

-

118

Other

87

122

Total non-operating income

164

462

Interest expenses

35

35

Foreign exchange losses

179-

Loss on valuation of derivatives

-

70

Other

13

20

Total non-operating expenses

228

126

(4,822)

961

Gain on liquidation of subsidiaries and associates-

81

Total extraordinary income-

81

Impairment loss

88

127

Total extraordinary losses

88

127

(4,910)915

Non-operating income

Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses

Net income (loss) before income taxes
Income taxes-current

206

661

Income taxes-deferred(1,435)(15)

Total income taxes(1,228)645

Net income (loss)(3,681)

269

Net income (loss) attributable to owners of the parent(3,681)

269

- 6 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY2/21(Mar. 1, 2020 – May 31, 2020)(Million yen)First three months of FY2/22(Mar. 1, 2021 – May 31, 2021)(3,681)

269

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

(1)

2

(8)

(8)

Foreign currency translation adjustment

37

158

Net income (loss)

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

- 7 -

28

151

(3,653)421(3,653)421--

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.

- 8 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year

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

First three months of FY2/22
Sales (million yen)

YoY change (%)

Composition (%)

GLOBAL WORK

9,001

19.4

58.6

niko and ...

5,963

12.9

39.5

LOWRYS FARM

4,594

9.9

34.3

STUDIO CLIP

4,427

9.5

30.8

LEPSIM

3,041

6.6

44.4

JEANASIS

2,271

4.9

43.1

BAYFLOW

2,141

4.6

44.5

RAGEBLUE

1,270

2.7

30.9

Others

6,525

14.1

37.0

39,23984.6

41.8

BUZZWIT Co., Ltd.

Total (Adastria)

1,707

3.7

23.7

ELEMENT RULE Co., Ltd.

2,344

5.0

44.1

Other consolidated subsidiaries

89

0.2

69.5

43,38093.5

41.2

Hong Kong

679

1.5

12.2

China

515

1.1

196.9

Taiwan

830

1.8

34.7

USA

981

2.1

0.3

Total (Japan)

Notes:

Total (Overseas)

3,007

6.5

18.4

Total (Group)

46,387

100.0

39.4

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 b etween consolidated
subsidiaries.

(2) Sales for Merchandise Categories
Category

First three months of FY2/22
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

6,710

14.5

57.3

Lady’s apparel (bottoms, tops)

30,663

66.1

40.7

Others

9,012

19.4

25.1

46,387

100.0

39.4

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 b etween consolidated
subsidiaries.

- 9 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2022 Fiscal Year

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

As of Feb. 28,
2021

First three months of FY2/22
OpenedChangedAs of May 31,
2021

Increase/decrease

ClosedGLOBAL WORK

209

-

-

-

-

209

niko and ...

144

1

-

-

1

145

LOWRYS FARM

134

3

-

-

3

137

STUDIO CLIP

183

2

-

(1)

1

184

LEPSIM

122

-

-

-

-

122

JEANASIS

72

2

-

-

2

74

BAYFLOW

56

2

-

-

2

58

RAGEBLUE

49

1

-

-

1

50

Others

259

17

-

(1)

16

275

1,228

28

-

(2)

26

1,254

BUZZWIT Co., Ltd.

14

-

-

-

-

14

ELEMENT RULE Co., Ltd.

87

13

-

(2)

11

98

Other consolidated
subsidiaries

3

4

-

-

4

7

Total (Adastria)

1,332

45

-

(4)

41

1,373

Hong Kong

Total (Japan)

14

1

-

-

1

15

China

3

-

-

-

-

3

Taiwan

41

-

-

(1)

(1)

40

USA

10

-

-

(1)

(1)

9

Total (Overseas)

68

1

-

(2)

(1)

67

Total (Group)

1,400

46

-

(6)

40

1,440

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.

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 -