Adastria reports solid first half, progresses strategic transformation

Adastria Co. Ltd., which transitioned to and ST HD Co. Ltd. as of September 1, 2025, reported consolidated net sales of JPY 149,345 million for the first half of the fiscal year ending February 28, 2026, a 3.6% increase year-on-year. Operating profit decreased by 19.4% to JPY 7,973 million, while ordinary profit fell 24.3% to JPY 7,790 million. Net income attributable to owners of the parent was JPY 5,987 million, down 13.7%. Despite these reductions, the company's full-year consolidated forecast remains unchanged, anticipating JPY 305,000 million in net sales and JPY 19,000 million in operating profit.

A key strategic move involved the sale of its U.S. subsidiary, Velvet, LLC, on July 25, 2025, as part of its withdrawal from the U.S. market, anticipating an extraordinary loss of approximately JPY 500 million in the third quarter. Concurrently, the company plans to generate an extraordinary gain of approximately JPY 3.4 billion from the sale of the Fukuoka Distribution Center within the current fiscal year, aligning with its global value chain optimization.

Furthermore, Adastria implemented a company split and transitioned to a holding company structure on September 1, 2025, renaming itself and ST HD Co. Ltd., with the core operating company becoming New Adastria. This restructuring aims to enhance corporate value by leveraging the strengths of each group company, accelerating M&A activities, and expanding global presence, particularly in Southeast Asia, with a focus on increasing brand and e-commerce penetration.