Workman management commentary: Improved store gross margin supports Q2 profitability in fiscal year ending March 2027

• Workman management's commentary on second-quarter earnings for the year ending March 2027 cited a 0.4-percentage-point improvement in store gross margin.
• Higher domestic purchasing increased supplier rebates, supporting margins; stronger logistics service income offset selling, general and administrative expenses in the first half.
• Second-half margins face pressure from a weaker yen, with the contracted exchange rate at 151 yen versus 144 yen in the first half.
• October Mediheal unit sales reached approximately 250% of year-earlier levels, but rising inventories prompted production adjustments; management expects normalization within three to five months.
• Higher inventory-related logistics costs and increased marketing spending underpin a larger second-half expense budget; management remains cautious on winter sales amid weather uncertainty.

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