SOUGOU SHOUKEN, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 19% Decrease

SOUGOU SHOUKEN CO., LTD. <7850> [TSE Std] announced its financial results after the market closed on June 12th (16:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending July 2026 (August 2025 to April 2026) decreased 23.6% from the same period last year to 773 million yen.

In addition, the full-year forecast for consolidated ordinary profit has decreased 19.5%, from the previous forecast of 435 million yen to 350 million yen (compared to 431 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of an 18.8% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit/loss for the February to July period (second half) has been revised downward from an expected loss of 575 million yen to a loss of 660 million yen (compared to a loss of 710 million yen in the same period of the previous year), indicating an expansion in the loss margin.

In the most recent three-month period, from February to April (3Q), the consolidated ordinary loss expanded to a loss of 237 million yen (compared to a loss of 129 million yen in the same period last year). The operating profit/loss margin drastically worsened from -5.3% in the same period last year to -9.9%.

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