TOKYO, May 08 (Pulse News Wire) – Colowide CO.,LTD. (7616.T) announced today that its subsidiary, Atom Corporation, recorded special losses and tax adjustments for the fiscal year ending March 31, 2026.
In the fourth quarter of the fiscal year, Atom recognized impairment losses totaling ¥6 billion across 53 stores due to anticipated future risks associated with certain fixed assets. Additionally, the company adjusted its deferred tax asset valuation, resulting in a tax adjustment loss of ¥220 million. Atom also revised its full-year earnings forecast compared to previous estimates. As of March 31, 2026, the company reported sales revenue of ¥1 billion, operating profit of ¥100 million, ordinary profit of ¥77 million, and net income per share of ¥10.
These figures represent increases of ¥10 million in sales revenue and ¥10 million in operating profit, but a decrease of ¥20 million in net income due to the tax adjustment. The primary reasons for the variance in earnings forecasts included increased sales driven by seasonal promotions, regional marketing adjustments, and ongoing brand awareness campaigns via TV advertising. Cost reductions through optimized labor expenses contributed to higher-than-expected profits. However, the tax adjustment negatively impacted net income.
The impact of Atom’s revised performance on Colowide’s overall results is reflected in the company’s recently disclosed interim report for the fiscal year ending March 31, 2026.
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