TOKYO, May 07 (Pulse News Wire) – Sekido CO.,LTD. (9878.T) reported two consecutive operating losses and negative cash flow for the fiscal year ending March 2026.
The company also noted breaches of financial covenants related to pledge agreements with some financial institutions. Despite these challenges, Sekido plans to strengthen its business foundation through diversification efforts and stabilize its financial base via warrant exercises scheduled for June and December. In the beauty sector, Sekido will focus on expanding its portfolio beyond its primary Korean cosmetics brands to include devices such as facial care gadgets and self-branded cosmetics. In fashion retail, the company aims to optimize strategies centered around GINZA LoveLove and &choa!.
Stores. Regarding financial stability, Sekido raised more than ¥900 million through warrant exercises in June and December, maintaining minimum capital despite poor performance. However, the success of future funding rounds remains contingent upon market conditions and cooperation from financial institutions. While immediate consequences of covenant breaches are mitigated, significant uncertainties persist regarding the company's ability to sustain operations amid economic headwinds and competitive pressures.
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