Arclands, the Tokyo Prime-listed home-centre and restaurant group (code 9842), has cut its profit for the year to February 2026 by more than a quarter. The company said on October 13 that net profit attributable to owners of the parent is ¥5.95bn, against ¥8.09bn before correction, a 26.4% fall. Earlier Tokyo Brief coverage
What the investigation found
Arclands set up a special committee on July 3, 2026 to examine suspected improper accounting at its pet-business subsidiary group, which the notice calls PFH. It received the committee's report on October 2. The company says PFH's consolidation reporting package to the parent used numbers that differed from those in its accounting system. The review also found unrealized profit on inventory that had not been eliminated, and bad-debt and bonus provisions that were booked late.
Arclands bought 100% of the group on June 6, 2025, for ¥6.5bn in cash. The group sells pets, provides aftercare and runs animal hospitals. The correction also reflects a review of whether PFH's deferred tax assets can be recovered. Items previously left uncorrected as immaterial were fixed at the same time.
Three periods, one direction
The correction touches the interim period to August 2025, the nine months to November 2025 and the full year. Revenue barely moved. The damage sits in profit: operating profit fell 4.6% at the interim stage, 6.7% after nine months and 8.6% for the year.
| Period | Operating profit before | Operating profit after | Net profit before | Net profit after |
|---|---|---|---|---|
| Interim (to Aug 2025) | 8,878 | 8,471 | 5,680 | 5,380 |
| Nine months (to Nov 2025) | 11,597 | 10,821 | 7,071 | 6,449 |
| Full year (to Feb 2026) | 14,196 | 12,971 | 8,088 | 5,953 |
Total assets for the year fell from ¥346.21bn to ¥343.93bn, and net assets from ¥128.36bn to ¥126.17bn. Arclands apologized to shareholders and investors in the notice.
Filings and remaining items
On October 13 Arclands filed amended annual and half-year securities reports with the Kanto Local Finance Bureau and re-issued its interim, third-quarter and full-year earnings summaries. The restated annual statements were audited by PwC Japan. The interim statements were reviewed by the same firm.
The notice says the correction of the internal control report, and a disclosure of material weaknesses in financial-reporting controls, are covered in a separate announcement. The notice does not set out what remediation Arclands plans.