Interim report
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Notice : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Company name : Standards Financial Acc Accounting FASF Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Based on Japanese GAAP ) Goldwin Inc. Tokyo MEMBERSHIP August 6 , 2026 Stock exchange listing : Securities code : 8111 URL : Representative : Inquiries : TEL : https://about.goldwin.co.jp/eng/ Takao Watanabe , President and CEO Michio Shirasaki , Executive Vice President and Director CFO + 81-3-6777-9378 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results meeting : Yes Yes ( Amounts less than one million yen are rounded down ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes ) Profit attributable to Net sales Operating profit Ordinary profit owners of parent Three months ended June 30 , 2026 June 30 , 2025 Millions of yen 23,592 23,878 ( 2.9 ) % Millions of yen % ( 1.2 ) 371 ( 82.1 ) 2,079 13.1 Millions of yen % Millions of yen % 2,598 ( 30.9 ) 2,249 ( 29.5 ) 3,759 ( 11.7 ) 3,189 ( 12.9 ) Note : Comprehensive income Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : ¥ 976 million ¥ 1,066 million [ ( 77.5 ) % ] [ ( 8.4 ) % ] share Earnings per Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 16.45 23.33 Note : A stock split was conducted , converting one common share into three shares , effective October 1 , 2025. Accordingly , earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year . ( 2 ) Consolidated financial position As of Total assets Net assets Equity ratio Millions of yen 160,031 168,227 Millions of yen 127,530 130,499 % 79.0 76.9 As of June 30 , 2026 ¥ 126,444 million As of March 31 , 2026 ¥ 129,407 million June 30 , 2026 March 31 , 2026 Reference : Equity
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2. Cash dividends Annual dividends per share 1st quarter-end 2nd quarte r-end 3rd quarte r-end Fiscal yea r-end Total Yen Yen Yen Yen Yen Year ended March 31, 2026 – 87.00 – 29.00 – Year ending March 31, 2027 – Year ending March 31, 2027 (Forecast) 35.00 – 35.00 70.00 Notes: 1. Revisions to the forecast of cash dividends most recently announced: No 2. The interim dividend of ¥87 for the year ended Ma rch 31, 2026 includes a commemorative dividend of ¥10 associated with the 75th anniversary of the Company’s founding. 3. A stock split was conducted, converting one common sh are into three shares, effective October 1, 2025. Accordingly, the year-end dividend per share for the year ended March 31, 2026 is shown taking into account the stock split, and the total annual dividend indicated as “–.” If the year-end dividend for the fiscal year ended March 31, 2026 were converted to the pre-split amount, it would be ¥87, and the total annual dividend would be ¥174. 3. Forecast of consolidated financial results for th e year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 55,600 0.0 4,200 (39.6) 7,000 (23.0) 5,400 (20.6) 39.48 Full year 145,400 5.7 26,100 0.9 34,100 0.6 25,600 6.3 187.16 Note: Revisions to the forecast of consolidated financial results most recently announced: Yes
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* Notes (1) Significant changes in the scope of consolidation during the three months ended June 30, 2026: No Newly included: – Excluded: – (2) Application of special accounting methods for preparing quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in ac counting estimates, and restatement of prior period financial statements (i) Changes in accounting policies due to revisions to accounting standards and other regulations: No (ii) Changes in accounting poli cies due to other reasons: No (iii) Changes in accounting estimates: No (iv) Restatement of prior period financial statements: No (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 142,344,516 shares As of March 31, 2026 142,344,516 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 5,535,388 shares As of March 31, 2026 5,575,185 shares (iii) Average number of shares during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 136,779,280 shares Three months ended June 30, 2025 136,699,670 shares Note: A stock split was conducted, converting one common share into three shares, effective October 1, 2025. Accordingly, average number of shares during the period is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: No * Proper use of financial forecasts, and other special matters Descriptions of the above financial forecasts and other data are based on information currently available to the Company and certain assumptions that we consider to be reasonable. Actual financial results may differ significantly from the forecasts for various reasons. Please refer to “1. Overview of Operating Results, etc., (3) Explanation of consolidated financial results forecasts and other forward-looking statements” on page 3 of the attached material for the suppositions that form the assumptions for the financial forecasts and cautions regarding the use of the financial forecasts.
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- 1 - Attached Material Index 1. Overview of Operating Results, etc. ......................................................................................................... 2 (1) Overview of operating results of the period under review ................................................................. 2 (2) Status of the financial situation of the period under review ............................................................... 2 (3) Explanation of consolidated financial results forecasts and other forward-looking statements ......... 3 2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .......................................... 4 (1) Quarterly consolidated balance sheet ................................................................................................. 4 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ................................................................................................................................................ 6 Quarterly consolidated statement of income ...................................................................................... 6 Quarterly consolidated statement of comprehensive income ............................................................. 7 (3) Notes regarding quarterly consolidated financial statements ............................................................. 8 (Notes regarding assumptions of going concern) ............................................................................... 8 (Notes on segment information, etc.) ................................................................................................. 8 (Notes on significant changes in the amount of shareholders’ equity) ............................................... 8 (Notes on quarterly consolidated statement of cash flows) ................................................................ 8
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- 2 - 1. Overview of Operating Results, etc. (1) Overview of operating resu lts of the period under review During the three months ended June 30, 2026, the Japanese economy saw a continued upward trend in wages against the backdrop of labor shortages, and an improved employment and personal income environment supported consumer spending. However, continuing price increases limited the growth in real disposable income, and a frugal mindset, driven by the awareness of protecting one’s livelihood, intensified further across all consumption. In addition, the outlook for the global economy remained uncertain due to developments in tariff policies by the U.S. and heightened geopolitical risks, particularly in the Middle East, leading to continued caution from both businesses and consumers. Furthermore, while the number of foreign visitors to Japan remained at a high level, the benefits of inbound demand varied across regions and industries due to changes in nationality composition and purchasing behavior. Under such an environment, the sports apparel industry continues to face a need for more than ever to offer products that meet actual demand and to clearly communicate the functionality of products, as consumers remain more selective. In addition, weather factors had a significant impact on the three months ended June 30, 2026, and unfavorable weather in June led to sluggish sales of summer items such as T-shirts, shorts, and sandals. Based on these factors, the Group adopted a basic policy of clearly defining the connection between customers and products at the point of sale. We worked to clarify key products, conduct daily checks of sales and inventory, share best practices company-wide, and strengthen cooperation between business divisions and sales divisions. In addition, to help clear out our summer inventory, we started our clearance sale about a week earlier than last year, beginning in mid-June. By sales channel, directly managed stores saw an increase in sales, driven by outlet stores, and with regular-priced stores also exceeding the same period of the previous fiscal year. Our own e-commerce site, “GOLDWIN ONLINE STORE,” saw an increase in sales volume and revenue, due to the markdowns on some products. On the other hand, the wholesale division fell below the same period of the previous fiscal year, due to the reaction to the earlier-than-expected shipments at the end of the previous fiscal year. As a result of these factors, the decline in revenue from the wholesale division exceeded the increase in revenue from directly managed stores and our own e-commerce, leading to net sales for the three months ended June 30, 2026, amounting to ¥23,592 million (down 1.2% year on year). Gross profit was ¥12,746 million (up 0.8% year on year) with the gross profit margin of 54.0%, up 1.0 percentage points. On the other hand, selling, general and administrative expenses was ¥12,374 million (up 17.1% year on year), mainly due to higher personnel expenses resulting from the revisions to the human resource system. The increase in these expenses significantly exceeded the increase in gross profit. Consequently, operating profit was ¥371 million (down 82.1% year on year). On the other hand, net sales at YOUNGONE OUTDOOR Corporation, an equity-method affiliate, maintained the level of the same period of the previous fiscal year, despite the lingering uncertainty in the domestic consumer environment in South Korea. The share of profit of entities accounted for using equity method was ¥2,178 million (up 33.6% year on year). As a result, the increase in share of profit of entities accounted for using equity method partially offset the decrease in operating profit, leading to an ordinary profit of ¥2,598 million (down 30.9% year on year). Profit attributable to owners of parent was ¥2,249 million (down 29.5% year on year). (2) Status of the financial situ ation of the period under review Total assets at the end of the period under review amounted to ¥160,031 million, down ¥8,196 million from the end of the previous fiscal year. The main factors were a ¥7,309 million decrease in notes and accounts receivable - trade, and contract assets and a ¥4,856 million decrease in cash and deposits, despite a ¥987 million increase in merchandise and finished goods and a ¥820 million increase in investment securities.
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- 3 - Total liabilities at the end of the period under review amounted to ¥32,501 million, down ¥5,227 million from the end of the previous fiscal year. The main factors were a ¥3,070 million decrease in electronically recorded obligations - operating and a ¥2,013 million decrease in income taxes payable. Total net assets at the end of the period under review amounted to ¥127,530 million, down ¥2,969 million from the end of the previous fiscal year. This was mainly due to ¥3,978 million in dividends paid. Equity ratio was 79.0%. (3) Explanation of consolidated financial result s forecasts and other forward-looking statements Regarding our consolidated financial results forecasts for the six months ending September 30, 2026, we have revised our financial results forecasts announced on May 13, 2026. In the domestic wholesale division, net sales have been below initial forecasts due to the reaction to earlier-than-expected shipments at the end of the previous fiscal year, in addition to sluggish sales of summer items due to unfavorable weather in June. We had taken into account the higher personnel expenses resulting from the revisions to the human resource system when making our initial performance forecasts. The revised consolidated financial results forecasts for the six months ending September 30, 2026 are as follows: net sales of ¥55,600 million (down 7.2% compared to the previous forecast), operating profit of ¥4,200 million (down 40.0% compared to the previous forecast), ordinary profit of ¥7,000 million (down 23.9% compared to the previous forecast), and profit attributable to owners of parent of ¥5,400 million (down 20.6% compared to the previous forecast). For further details, please refer to the “Notice Regarding the Revision of Financial Forecasts for the Six Months Ending September 30, 2026” announced today. On the other hand, we have not currently made any changes to the consolidated financial results forecasts for the fiscal year ending March 31, 2027 from those announced on May 13, 2026. The factors contributing to the downturn in the first half, such as the reaction to the earlier-than-expected shipments at the end of the previous fiscal year, and the unfavorable weather in June, are all specific to the first half. Therefore, we believe they will not continue to affect the performance in the second half. Additionally, our revenue is heavily weighted towards the second half of the fiscal year, when sales of our core autumn/winter products are dominant, and our full-year performance is heavily influenced by trends in the autumn/winter season. However, as for these autumn/winter products, there are currently no changes from the assumptions made at the beginning of the fiscal year. In the second half of the fiscal year, in addition to implementing measures related to the 60th anniversary of the “THE NORTH FACE” brand and strengthening the launch of autumn/winter products, we will thoroughly implement sales activities starting from stores, optimize inventory levels, and strengthen cooperation between business departments and sales divisions. Currently, as mentioned earlier, a frugal mindset among consumers continues due to heightened awareness of protecting their livelihoods. Additionally, the external environment remains highly uncertain, with factors such as unstable weather, continuing price increases, and exchange rate fluctuations. In particular, temperature trends during the autumn/winter season have a significant impact on our performance, and a warm winter could potentially be a downside factor. In the future, if we determine that these factors necessitate a revision of our consolidated financial results forecasts for the fiscal year ending March 31, 2027, we will promptly disclose the information.
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- 4 - 2. Quarterly Consolidated Financial Stat ements and Significant Notes Thereto (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 58,497 53,641 Notes and accounts receivable - trade, and contract assets 16,322 9,012 Electronically recorded monetary claims - operating 6,281 6,216 Merchandise and finished goods 18,629 19,617 Work in process 233 662 Raw materials and supplies 878 893 Other 2,083 2,666 Allowance for doubtful accounts (3) (2) Total current assets 102,923 92,708 Non-current assets Property, plant and equipment Buildings and structures, net 2,451 2,432 Land 4,679 4,679 Other, net 9,177 10,231 Total property, plant and equipment 16,308 17,343 Intangible assets Trademark right 349 276 Goodwill 144 140 Other 2,670 2,678 Total intangible assets 3,164 3,095 Investments and other assets Investment securities 35,436 36,256 Guarantee deposits 3,202 3,351 Other 7,281 7,368 Allowance for doubtful accounts (88) (92) Total investments and other assets 45,832 46,883 Total non-current assets 65,304 67,322 Total assets 168,227 160,031
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 4,627 4,689 Electronically recorded obligations - operating 16,074 13,004 Current portion of long-term borrowings 6 – Income taxes payable 2,212 198 Provision for bonuses 882 1,243 Provision for bonuses for directors (and other officers) 114 147 Other 8,408 7,612 Total current liabilities 32,326 26,896 Non-current liabilities Long-term borrowings 1,063 974 Provision for share-based payments 69 89 Retirement benefit liability 201 195 Other 4,067 4,344 Total non-current liabilities 5,402 5,604 Total liabilities 37,728 32,501 Net assets Shareholders’ equity Share capital 7,079 7,079 Capital surplus 1,581 1,581 Retained earnings 128,016 126,287 Treasury shares (14,426) (14,330) Total shareholders’ equity 122,251 120,617 Accumulated other comprehensive income Valuation difference on available-for-sale securities 3,862 3,878 Deferred gains or losses on hedges 126 136 Foreign currency translation adjustment 2,357 1,017 Remeasurements of defined benefit plans 810 795 Total accumulated other comprehensive income 7,156 5,827 Non-controlling interests 1,091 1,085 Total net assets 130,499 127,530 Total liabilities and net assets 168,227 160,031
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- 6 - (2) Quarterly consolidated stat ement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 23,878 23,592 Cost of sales 11,231 10,846 Gross profit 12,646 12,746 Selling, general and administrative expenses 10,567 12,374 Operating profit 2,079 371 Non-operating income Interest income 6 1 Dividend income 49 88 Share of profit of entities accounted for using equity method 1,630 2,178 Other 28 28 Total non-operating income 1,713 2,297 Non-operating expenses Interest expenses 13 14 Foreign exchange losses 7 – Loss on cancellation of insurance policies – 21 Cancellation penalty – 22 Other 13 12 Total non-operating expenses 33 70 Ordinary profit 3,759 2,598 Extraordinary income Gain on sale of property, plant and equipment – 0 Gain on sale of investment securities 123 – Total extraordinary income 123 0 Extraordinary losses Loss on store closings 0 21 Loss on disposal of non-current assets 0 2 Loss on cancellation of leases – 19 Other – 0 Total extraordinary losses 0 43 Profit before income taxes 3,882 2,554 Income taxes - current 102 141 Income taxes - deferred 577 106 Total income taxes 679 248 Profit 3,202 2,306 Profit attributable to non-controlling interests 13 57 Profit attributable to owners of parent 3,189 2,249
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- 7 - Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 3,202 2,306 Other comprehensive income Valuation difference on available-for-sale securities (44) 15 Deferred gains or losses on hedges (43) 9 Foreign currency translation adjustment (161) 47 Remeasurements of defined benefit plans, net of tax 21 (15) Share of other comprehensive income of entities accounted for using equity method (1,908) (1,387) Total other comprehensive income (2,136) (1,329) Comprehensive income 1,066 976 Comprehensive income attributable to: Owners of parent 1,053 919 Non-controlling interests 13 57
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- 8 - (3) Notes regarding quarterly cons olidated financial statements (Notes regarding assumptions of going concern) Not applicable. (Notes on segment information, etc.) [Segment information] Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) and three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) This information is omitted because the Group operates a single segment of sporting goods-related business. (Notes on significant changes in the amount of shareholders’ equity) Not applicable. (Notes on quarterly consolidated statement of cash flows) Quarterly consolidated statement of cash flows for the three months ended June 30, 2026 is not prepared. Depreciation (including amortization of intangible assets) and amortization of goodwill for the three months ended June 30, 2025 and 2026 are as follows: (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 563 637 Amortization of goodwill 4 4