The global economy continues to recover gradually, but there are still uncertain factors such as geopolitical risks and inflationary pressures. In Japan, while consumption appears to be resilient due to wage increases, high prices are putting pressure on household budgets, and the economy will take time to recover.
In the fitness club industry, as extending healthy life expectancy becomes a national priority due to the rapidly aging population and declining birthrate, expectations for fitness clubs as places to promote health through exercise and community participation are increasing, while competition is also intensifying due to the opening of a large number of 24-hour gyms and other small-scale businesses.

Current financial situation

Consolidated net sales for the first quarter of the fiscal year ending March 31, 2026 were 15,560 million yen, up 100.8% from the same period last year. Consolidated operating income and ordinary income posted losses of -280 million yen and -518 million yen, respectively.
Overall, the sports club business posted an operating loss in the first quarter due to weak customer traffic in April and May and weak sales in the home fitness business, as well as prior investments in sales promotion expenses, personnel expenses, and capital expenditures for existing fitness clubs. However, both businesses have been recovering since June, and we expect them to recover from the second quarter onward.
The sports club business is characterized by seasonal fluctuations in sales, with enrollment at existing clubs bottoming out in March and peaking in October. In the first quarter of the current fiscal year, the Company invested in sales promotion（115.0% year-on-year） and personnel expenses（109.7% year-on-year） to strengthen the spring/summer enrollment campaign in order to build up the number of enrollments.
In addition, opening expenses of ▲120 million yen for two sports clubs were recorded.
Sales in the home fitness business were 93.0% of the previous year's level. This was due to the impact of the brand switch from Sports Oasis to Renaissance in the previous fiscal year, which resulted in weak sales of steppers, a hot-selling product, but sales began to recover in June.
Sales in the nursing care and rehabilitation business were steady at 114.8% year-on-year.
After estimating future taxable income, including that of Sports Oasis Inc. which was merged into the Company on April 1, 2025, and carefully examining the recoverability of
deferred tax assets, the Company recorded an income taxes-deferred (profit) of 605 million yen.
As a result, net income attributable to owners of the parent amounted to 50 million yen (25.9% year-on-year).

Outlook for the fiscal year ending March 31, 2026

As announced on May 9, 2025, for the fiscal year ending March 31, 2026, we forecast net sales of 67,000 million yen (105.1% year-on-year), operating income of 2,200 million yen (113.0% year-on-year), ordinary income of 1,400 million yen (114.3% year-on-year), and net income attributable to owners of the parent of 850 million yen (111.0% year-on-year). Net income attributable to owners of the parent is expected to be 850 million yen (111.0% of the same period of the previous year).
Although an operating loss was recorded in the first quarter, signs of a recovery have been visible since June, and in the home fitness business, we plan to launch new products in the second quarter and beyond, and we will continue to aim to achieve the announced figures at this time.
In addition, the Company plans to implement organizational revisions as of September 1 in order to increase the speed of decision making and implementation of measures in each business.

Medium- to long-term vision

Based on our corporate philosophy of being “a company for creating purpose in life(ikigai in Japanese）,” the Group's long-term vision is to become “a health solutions company that enriches the age of the 100 -year life span” and aims to create a society in which people can live prosperously in all stages of life, in good health and with a sense of purpose in life, in mind and body. We aim to create a society in which people can enjoy good health and fulfillment of life in all stages of life. Based on this vision, we have formulated the “2024-2027 Mid-Term Management Plan” and aim to achieve net sales of 75 billion yen and operating income of 5.5 billion yen in the fiscal year ending March 31, 2028. As financial targets, we aim to achieve an equity ratio of 25%, ROE of 12%, and ROIC of 7.7%.

Message to shareholders and investors

The business environment in the fitness industry continues to undergo significant changes, but many people are realizing the importance of staying healthy and staying connected to others. Together with the staff who have joined us from Sports Oasis, we will work to create value as the “New Renaissance” and strive for new growth to meet the expectations of our shareholders and investors. We look forward to your continued understanding and expectations.