Adastria's first quarter sales rise, profit declines slightly

Adastria Co., Ltd. (TSE:2685) announced its consolidated financial results for the first quarter of the fiscal year ending February 28, 2026, showing a mixed performance. Net sales increased by 4.7% year-over-year to JPY 77.46 billion, driven by strong performance in mainland China and continued demand for casual fashion. However, operating profit decreased by 6.8% to JPY 5.60 billion, and net income attributable to owners of the parent fell slightly by 0.7% to JPY 4.37 billion. The company noted increased selling, general, and administrative expenses due to higher advertising and store-related costs. Adastria maintains its full-year consolidated forecast, with net sales projected at JPY 305.00 billion and net income attributable to owners of the parent at JPY 12.40 billion.