Summary of Consolidated Financial Results
for the First Quarter of the Fiscal year ending February 28, 2025
[Japanese GAAP] (Consolidated)
July 12, 2024
Company name:

TSI HOLDINGS CO., LTD.

Stock listing: Tokyo Stock Exchange

Code number:

3608

URL: https://www.tsi-holdings.com/en/

Representative:

Representative Director and President, Tsuyoshi Shimoji
Executive Officer, General Manager of Finance & Accounting Dept. Mitsuru Naito
TEL: +81-3-5785-6400

Contact:

Scheduled date of financial report:
Scheduled date to begin dividend payment:

July 12, 2024―

Preparation of supplementary financial document:
Briefing session to explain the financial statements:

Yes
Yes (For institutional investors and analysts)(Rounded down to the nearest million yen)

1. Consolidated Business Results for the first quarter of the Fiscal Year Ending February 28, 2025 (March 1, 2024 to May 31, 2024)(1) Consolidated results of operations(% change from the previous fiscal year)

Net salesFirst quarter of FY ending
February 28, 2025
First quarter of FY ended
February 29, 2024

Operating income

Million yen%

39,295(0.2)

39,372

3.3

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen%

Million yen

1,018(44.5)

1,108(54.3)

546(72.5)

1,836

14.5

2,425

9.6

1,988

(3.6)

(Notes) Comprehensive income: First quarter of Fiscal year ending February 28, 2025 ¥1,716 million (4.5%)
First quarter of Fiscal year ended February 29, 2024 ¥1,719 million (31.0%)
Net income
per shareFirst quarter of FY ending
February 28, 2025
First quarter of FY ended
February 29, 2024

Diluted net
income per share
Yen

Yen

7.29

―

23.78

―

(2) Consolidated financial position

Million yen

Million yen

Shareholders’ equity
ratio%

132,016

97,03773.3

133,464

97,422

72.7

Total assets
First quarter of FY ending
February 28, 2025
FY ended February 29, 2024

Net assets(Reference) Shareholders’ equity: First quarter of FY ending February 28, 2025 ¥96,704 million
FY ended February 29, 2024
¥97,084 million
2. Dividends
Annual dividend
End of
1Q
Yen

End of
2Q
Yen

End of
3Q
Yen

Yen

Yen

FY ended February 2024

―

0.00

―

15.00

15.00

FY ending February 2025

―
0.00

―

19.00

19.00

FY ending February 2025
(forecast)Year-end

Total(Note) Revisions during this quarter of dividends forecast for the fiscal year: None%

3. Forecast of Consolidated Business Results for the Fiscal Year Ending February 28, 2025 (March 1, 2024 to February 28, 2025)(% change from the corresponding period of the previous fiscal year)
Net sales
Million yen
Second quarter(Cumulative)
Full fiscal year

Operating income%

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen%

Million yen

Net income
per share%

Yen

74,500

1.7

(900)

―

(500)

―

(900)

―

(11.93)160,000

3.0

2,000

13.6

2,500

(33.5)

4,000(17.5)

53.04(Note) Revisions during this quarter of previously disclosed consolidated business results projection for FY 2025: None

＊Notes:(1) Changes in significant subsidiaries during the period: None
Changes in specified subsidiaries resulting in a change in the scope of consolidation(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
a. Changes in accounting policies due to revisions of accounting standards: Noneb. Changes in accounting policies other than above (a): Nonec. Changes of accounting estimates: None
d. Restatements: None
(4) Number of shares issued (common stock)a. Number of shares issued Q1 of FY endingat the end of period(treasury stock included) February 2025
Q1 of FY ending
b. Number of treasury
stock at the end of period February 2025
c. Average number ofshares over the period

Q1 of FY ending
February 2025

80,327,993 shares

FY ended February 2024

87,074,993 shares

6,049,494 shares

FY ended February 2024

11,655,093 shares

74,936,707 shares

Q1 of FY ended February
2024

83,637,833 shares*This business results report is not subject to auditing by certified public accountants or audit firms.
*Explanation regarding the appropriate use of business forecasts and other special instructions
The forward-looking statements, including business forecasts, contained in this document are based on information currently
available to the Company and on certain assumptions deemed reasonable by the Company, and are not intended as a promise by
the Company that they will be achieved. Actual results may differ materially due to a variety of factors. Please refer to "(3)Explanation of Consolidated Business Forecast and Other Forward-looking Statements " on page 3 for the assumptions underlying
the forecasts and cautionary statements regarding the use of the forecasts.

Contents of Attached Materials
1. Qualitative Information on results for this quarter of FY ending February 2025 ···································· 2(1) Overview of Business Results ······························································································· 2(2) Overview of Financial Position ···························································································· 3(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements ··············· 3
2. Quarterly Consolidated Financial Statements and Major Notes ······················································ 4(1) Quarterly Consolidated Balance Sheets ·················································································· 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ··············· 6
Quarterly Consolidated Statements of Income ·········································································· 6First Quarter Consolidated Cumulative Period ······································································· 6
Quarterly Consolidated Statements of Comprehensive Income···················································· 7First Quarter Consolidated Cumulative Period ······································································· 7(3) Notes to Quarterly Consolidated Financial Statements ······························································ 8
Going Concern Assumption ··································································································· 8Notes on Significant Changes in Shareholders’ Equity ······························································ 8
Additional Information ········································································································· 8
Segments of the Company and Related Information ·································································· 911.

Qualitative Information on results for this quarter of FY ending February 2025

(1) Overview of Business Results
During the first quarter consolidated cumulative period (March 1, 2024, to May 31, 2024), the apparel industry
experienced a recovery in personal consumption due to the subsiding impact of the COVID-19 pandemic and increased
tourism-related demand. However, the industry faced challenges due to a complex mix of factors. These included
changes in consumer sentiment towards apparel products driven by the prolonged effects of the pandemic, as well as
the soaring resource and material prices caused by conflicts in Ukraine and Palestine and the significant depreciationof the yen.
In response to this challenging business environment, our group announced a new medium-term business strategy,"TSI Innovation Program 2027 (TIP27)," in April 2024. Guided by our purpose, "We create global empathy and social
value through the power of fashion entertainment," we are committed to enhancing corporate value by simultaneously
pursuing a fundamental restructuring of our revenue structure, growth strategies, and investment in human capital.
Specifically, we aim to reform our revenue structure through several initiatives: pursuing economies of scale byconsolidating raw material procurement and product sourcing, improving profit margins by revising product pricing
and sales strategies, strategically reallocating stores and personnel through the consolidation and expansion of stores,
increasing operational efficiency by consolidating E-commerce sites currently dispersed across brands, and reassessing
the staffing structure at our headquarters. Additionally, we will invest in growth strategies by focusing on several key
areas: concentrating investments in high-growth, high-profitability brands through a review of our brand portfolio,
entering new market segments with growth potential, expanding existing brands through M&A, enhancing customer
referrals between stores and EC channels by consolidating them, and strengthening our CRM to improve ourpresentation capabilities to customers.
On the other hand, our group is dedicating increased focus to reforms in the sustainability area, which has attracted
heightened customer interest. By reviewing materials and reconsidering manufacturing processes, we will continue
our efforts to help customers find new value in the products we offer.
As a group, we diligently focus on strengthening retail sales across our various subsidiaries and enhancing sales
through e-commerce channels. Concurrently, we continue to rigorously assess product procurement to maintain
optimal standards, thereby implementing measures such as reducing excess inventory and controlling costs.
Consequently, net sales stood at 39,295 million yen (down 0.2% year on year), operating income was 1,018 million
yen (down 44.5% year on year), and ordinary income was 1,180 million yen (down 54.3% year on year).
Furthermore, the quarterly profit attributable to owners of the Group’s parent was 546 million yen (down 72.5% year
on year).
Net sales by reportable segment were as follows.

Apparel-Related Businesses
In our apparel-related businesses, March saw sluggish sales of spring items due to low temperatures. However, from
April onward, sales of early summer items have performed well alongside efforts across the organization to promote
inventory clearance. As a result, our revenue is gradually recovering.
Furthermore, demand from international customers has remained strong, with brands like "Stussy" in streetwear,
London's collection brand "Margaret Howell," and outdoor brand "and wander," which also has international sales
channels, showing robust performance. Brands such as "Avirex" with a focus on military fashion, leather fashion brand"Schott," curated boutique "Royal Flash," and womenswear brands "Adore" and "Cadune" have also capitalized onmarket needs. They have implemented product strategies that cater to customer lifestyles, contributing to further
revenue expansion.
Due to the impact of wholesale sales primarily centered around golf-related items, revenue from the apparel-related
business amounted to 37,789 million yen (down 0.7% year on year).

2

Other Businesses
In other businesses, S-Groove Co., Ltd., which engages in sales agency and staffing services, saw an increase inexternal registered dispatch sales and benefited from an expansion in permanent sales agency storefronts, leading tostrong in-store sales. Additionally, Ready to Fashion Inc., specializing mainly in SaaS-based recruitment services
tailored for the apparel industry and operating a job posting Social Network platform, strengthened revenue within
the group following its full acquisition as our subsidiary in March of this year.
Furthermore, Tosca Bano’k Co., Ltd., engaged in the manufacture and sale of synthetic resin products; Plax Co., Ltd.,
involved in store design supervision and food service operations; Laline JAPAN Co., Ltd., which handles procurement
and sales of cosmetics, perfumes, soaps, and others; and Urth Caffe JAPAN Co., Ltd., operating a popular organic cafein California, contributed to revenue reaching 1.75 billion yen (up 11.3% year on year).

(2) Overview of Financial Position(Million yen)
At the end of FY ended
February 2024
(As of February 29, 2024)

At the end of 1Q FY ending
February 2025
(As of May 31, 2024)

Increase/decrease

Total assets

133,464

132,016(1,447)

Liabilities

36,041

34,979

(1,062)

Net assets

97,422

97,037(384)

Shareholders’ equity ratio
Net assets per share

72.7%

73.3%

0.5%

¥1,287.25¥1,301.92¥14.66

Assets decreased by 1,447 million yen due to increases in accounts receivable (up 932 million yen from the previous
fiscal year-end) and inventory (up 808 million yen from the previous fiscal year-end), offset by a decrease in cash andcash equivalents (down 3,047 million yen from the previous fiscal year-end).
Liabilities decreased by 1,062 million yen primarily due to a decrease in long-term borrowings, including those
repayable within one year (down 835 million yen from the previous fiscal year-end).
Equity decreased by 384 million yen despite an increase in other securities valuation differences (up 879 million yen
from the previous fiscal year-end) due to activities such as acquiring and retiring treasury stock.
As a result, net asset per share increased by ¥14.66.

(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements
No adjustments were made concerning the business results projection for the year ending February 28, 2025 asreported in the “Forecast of Consolidated Business Results for the Fiscal Year Ending February 28, 2025” released on
April 12, 2024.

3

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
Previous consolidated
fiscal year
(As of February 29, 2024)(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of May 31, 2025)

AssetsCurrent assets
Cash and deposits
Notes receivable-trade27,472
85

24,425111

Account receivable-trade
Merchandise and finished goods

11,596
26,863

12,52927,693

507
681

434
732

Other
Allowance for doubtful accounts

3,724
(54)

2,720
(58)

Total current assets

70,877

68,588

6,560

7,010

Goodwill
Other

1,501
5,658

1,921
5,433

Total intangible assets

7,159

7,355

Investments and other assets
Investment securities

25,13725,816

Investment property
Other

4,683
19,147

4,886
18,462

Allowance for doubtful accounts

(100)

(102)

Total investments and other assets

48,86649,06262,58663,428133,464

132,016Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Intangible asset

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable–trade

9,615

9,584

Short-term borrowings
Current portion of long-term borrowings

5,013
3,309

5,000
2,759

Income taxes payable
Provision for bonuses

637
1,164

542
1,588

104
148

76
68

Other

8,395

7,910

Total current liabilities

28,38827,529Provision for retirement benefits for directors

1,630
35

1,345
35

Retirement benefit liability
Asset retirement obligations

1,192
2,367

1,213
2,427

Other

2,426

2,427

Provision for shareholder benefit program
Asset retirement obligations

Non-current liabilities
Long-term borrowings

Total non-current liabilities
Total liabilities

4

7,653

7,449

36,041

34,979

Previous consolidated
fiscal year
(As of February 29, 2024)(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of May 31, 2025)

Net assets
Shareholders’ equity
Share capital
Capital surplus

15,00024,03015,00019,520Retained earnings
Treasury stock

60,052(7,605)59,455(4,052)

Total shareholders’ equity

91,47789,922

4,597

5,477

1,136
(126)

1,441
(136)

5,607

6,781

337

333

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

597,422

97,037

133,464

132,016(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly consolidated statements of income
Consolidated cumulative first quarter

Cost of sales

Consolidated cumulative
first quarter ofprevious fiscal year
(March 1,2023 to May 31,
2023)
39,372
16,810(Million yen)
Consolidated cumulative
first quarter ofcurrent fiscal year
(March 1,2024 to May 31,
2024)
39,295
17,261Gross profit

22,562

22,033

Selling, general and administrative expenses

20,72621,014

Operating income

1,836

1,018

Interest income
Dividend income

13
418

11
133

Real estate income
Foreign exchange income

84
63

94
163

Net sales

Non-operating income

Other

63

47

Total non-operating income

643

450

Non-operating expenses
Interest expenses

12

11

Rental expenses on real estate
Loss on cancellation of insurance policies

11
11

10
2

Equity Losses of Affiliated Companies
Other

18

287
47

Total non-operating expenses

54

359

2,425

1,108

Gain on sales of non-current assets
Gain on sale of investment securities

0
191

0
466

Total extraordinary income

191

467

Extraordinary losses
Loss on retirement of non-current assets

42

Loss on sales of investment securities
Impairment loss

17
25

130
23

-

7

Ordinary income
Extraordinary income

Other
Total extraordinary losses
Income before income taxes
Income taxes―current
Income taxes―deferred
Total income taxes
Net income
Net loss attributable to non-controlling interest
Net income attributable to owners of parent

6

47

164

2,570

1,411

609
(2)

590
284

606

875

1,963

536

(25)

(9)

1,988

546

Quarterly Consolidated statements of comprehensive income
Consolidated cumulative first quarter

Net income
Other comprehensive income

Consolidated cumulative
first quarter ofprevious fiscal year
(March 1,2023 to May 31,
2023)
1,963

(Million yen)
Consolidated cumulative
first quarter ofcurrent fiscal year
(March 1,2024 to May 31,
2024)
536

(23)
(200)

879
281

55

(10)

0

28

Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income

(166)

1,179

Comprehensive income

1,797

1,716

Total comprehensive income attributable to:
Owners of parent

1,818

1,720

(21)

(4)

Non-controlling interests7(3) Notes to Quarterly Consolidated Financial Statements

Going Concern Assumption
Not applicable

Notes on Significant Changes in Shareholders’ Equity
Not applicable

Additional Information
Trust-Type Employee Stock Ownership Plan (ESOP)TSI Holdings resolved at a Board of Directors’ meeting held on April 13, 2020 to reintroduce a trust-type employee
stock ownership plan (ESOP) as an incentive plan and part of its efforts to provide benefits for its employees.
i. Overview of the Plan
The Company has established a trust (the Shareholding Association Trust). The beneficiaries of the Shareholding
Association Trust are members of the TSI Employee Shareholding Association (the Shareholding Association) who
have met certain requirements.
The Shareholding Association Trust acquired in advance a number of TSI Holdings shares projected to be acquiredby the Shareholding Association over a five-year period from April 2020 utilizing funds procured through debt
finance. Thereafter, acquisition of the Company’s shares by the Shareholding Association will be undertaken by the
Shareholding Association Trust. Meanwhile, TSI Holdings will guarantee the debt finance undertaken by the
Shareholding Association Trust.
ii. Shares of the Company Remaining in the Trust
The shares of the Company remaining in the Trust are posted as shares of treasury stock in the net assets section
at their carrying amount in the Trust. The carrying amount and number of shares of treasury stock as of the end of
the previous fiscal year under review were ¥140 million for 301,000 shares. And that as of the end of this fiscal year
under review were ¥130 million for 280,000 shares.
iii. Carrying Value of Debt Finance Posted Using the Gross Price Method
As of February 29, 2024: ¥185 million and as of May 31, 2024: ¥185 million,

Board Benefit Trust (BBT)In accordance with a proposal put forward at the Company’s 5th General Meeting of Shareholders held on May
25, 2016, TSI Holdings introduced a performance-linked stock compensation (Board Benefit Trust (BBT)) plan for
its directors and delegated executive officers as well as Group company directors (eligible officers).
i. Outline of the Transaction
Under the plan, the Company’s shares are acquired through a trust using money contributed by the Company asfunds. Eligible officers receive the Company’s shares equivalent to the points granted in accordance with the levelof performance achievement, etc., and money equivalent to the amount of the Company’s shares converted at market
value as of the date of retirement (the Company’s shares, etc.), pursuant to the officer stock delivery regulations.
Meanwhile, the timing of receipt of the benefits of the Company’s shares, etc. by eligible officers shall, in principle,
be upon their retirement from office.
ii. Shares of the Company Remaining in the Trust
The shares of the Company remaining in the Trust are posted as shares of treasury stock in the net assets section
at their carrying amount in the Trust. The carrying amount and number of shares of treasury stock were ¥273
million for 486,000 shares as of the end of the previous fiscal year and ¥272 million for 483,000 shares as of the endof this fiscal year under review.

8Segments of the Company and Related Information
1. Consolidated cumulative first quarter of previous fiscal year (March 1, 2023 to May 31, 2023)(1) Net sales, income or losses, assets and other items by reportable segments
Reportablesegment
Other
Total
Note 1
Apparel-related
businesses

Adjustments
Note 2

Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

38,018

1,352

39,371

1

39,372

29

180

209

(209)

―

38,047

1,533

39,580(207)

39,372

2,025

118

2,143

(307)

1,836

Inter-segment sales or transfers
Total
Segment income
Notes:

1. “Other,” which doesn’t belong to respective reportable segments, includes synthetic resin-related issues, store design
and management, and so on.
2. Segment income adjustment of ¥(307) million is attributed to corporate expenses not allocated to business segments
and the transaction offsets among consolidated companies.
3. Segment income is adjusted to operating income listed in the consolidated financial statements.
(2) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
None

A significant change in the amount of goodwill
None

A significant gain from negative goodwillNone91. Consolidated cumulative first quarter of current fiscal year (March 1, 2024 to May 31, 2024)(1) Net sales, income or losses, assets, and other items by reportable segments
Reportablesegment
Other
Total
Note
1
Apparel-related
businesses

Adjustments
Note 2

Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

37,756

1,538

39,295―39,295

33

167

200

(200)

―

37,7891,705

39,495(200)

39,295

1,430

152

1,582

(564)

1,018

Inter-segment sales or transfers
Total
Segment income
Notes:

1. “Other,” which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement, and so on.
2. Segment income adjustment of ¥(564) million is attributed to corporate expenses not allocated to business segments
and the transaction offsets among consolidated companies.
3. Segment income is adjusted to operating income listed in the consolidated financial statements.
(3) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
None

A significant change in the amount of goodwill
None

A significant gain from negative goodwillNone10