Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — FY2026 Earnings Presentation
51 slides from Komehyo's earnings presentation, May 14, 2026
Slide 1: Financial results for fiscal year ending March 2026
Thank you very much for gathering here today. I am Ishihara, President and CEO of Komehyo Holdings Co., Ltd. Now, I will explain our financial results for the fiscal year ending March 2026.
Slide 2: Highlights of financial results
First, let me explain the highlights of our financial results. In the fiscal year ending March 2026, our individual purchase business, the source of our growth, exceeded 100 billion yen for the first time. As a result, we achieved record-high sales and profits at all stages, resulting in a significa
Slide 3: Fourth quarter evaluation
Next, let's look at the evaluation for the fourth quarter (three months). Regarding purchasing and sales,Individual purchases increased by 137.6% year-on-year, setting a new quarterly record. This was due to the surge in gold prices and the success of strengthened purchasing efforts at existing stor
Slide 4: Fourth quarter profit and SG&A
However, due to a significant increase in revenue, the accumulated profit amount significantly exceeded the plan. Selling, general, and administrative expenses (SG&A) increased in total due to continued store openings and hiring investments as planned, but the SG&A ratio decreased due to the effect
Slide 5: Main topics for today
Here are the main topics we will be discussing today. Today, we will be explaining points 1 through 5.
Slide 6: Our business model
First, let me explain our business model.
Slide 7: Mission and vision
Our group's mission is tocreate a sense of shared purpose in a circular economy by showing respect to those who create, expressing gratitude to those who connect, and providing inspiration to those who use our products. Our vision is to transform relay use from an ideology to a culture.
Slide 8: Group key indicators
This page outlines key indicators as of the end of the previous fiscal year to provide an overview of our group. Founded in 1947, our company is now in its 79th year of operation. Our workforce has grown to approximately 2,000 employees domestically and internationally, an increase of 200 from the p
Slide 9: Business structure
This summarizes our business structure. We operate three businesses: brand fashion, tires and wheels, and real estate leasing. We support "relay use"—the transmission and effective utilization of goods from person to person—both domestically and internationally. In particular, our brand fashion busi
Slide 10: Earnings results for fiscal year ended March 2026
Now, let me explain earnings results for the fiscal year ended March 31, 2026.
Slide 11: Consolidated income statement
Here is the status of the consolidated income statement. For the full year, sales and profits at each stage reached record highs.
Slide 12: Individual purchase amount trend
This chart shows the trend in individual purchase amounts. In order to meet the active demand,we have focused on expanding individual purchases through the continuous opening of new specialty purchase stores and strengthened promotions, aiming to provide a product lineup that satisfies both in quali
Slide 13: Consolidated sales and gross profit margin
This chart shows the trends in consolidated sales and gross profit margin. The quarterly trends are as shown. We achieved significant increases in sales and improvements in the gross profit margin. In the fourth quarter, both the retail sales ratio and the tax-free sales ratio showed an upward trend
Slide 14: Breakdown of consolidated sales
This is a breakdown of consolidated sales. The retail sales ratio and the domestic duty-free sales ratio decreased in the previous period due to the inclusion of a company with a high proportion of corporate sales into the group and the utilization of corporate sales in line with the business enviro
Slide 15: SG&A expense trend
This shows the trend in selling, general, and administrative expenses. Selling, general, and administrative expenses increased due to proactive and continued investment in opening new stores that will lead to future growth, and in recruiting and training personnel.
Slide 16: Consolidated operating profit analysis
This is an analysis of consolidated operating profit. Details are as follows: The strong acquisition of high-quality inventory and the capture of active domestic and international retail demand drove the increase in profits. The increase in gross profit due to the rise in sales significantly boosted
Slide 17: Non-operating and extraordinary items
This section covers non-operating income and expenses, and extraordinary income and expenses. While interest payments increased due to increased borrowing to secure inventory, and impairment losses were recorded at some stores, these were absorbed by higher-than- expected profits at each stage due t
Slide 18: Balance sheet overview
This is an overview of our balance sheet. Total assets increased by approximately 20 billion yen from the end of the previous fiscal year, expanding to 109.1 billion yen. In particular, we were able to secure 50 billion yen in high-quality inventory, which will serve as a source of future sales and
Slide 19: Inventory turnover
This is an inventory turnover. To support future growth, we have strengthened our procurement and continued to build up high-quality inventory for retail. At the same time, we control inventory by appropriately selecting products that should be converted into cash quickly and by flexibly utilizing c
Slide 20: Cash flow
Here is the cash flow situation. Cash flow from operating activities and cash flow from investing activities resulted in cash outflows due to inventory acquisition and accelerated new store openings.
Slide 21: Consolidated GMV trend
The trend in consolidated gross merchandise volume (GMV) is as shown. GMV for this consolidated fiscal year increased significantly by 146.3% compared to the previous year, setting a new record high. This growth is attributed to maximizing the volume of goods sold in both retail and corporate channe
Slide 22: Main initiatives for fiscal year ended March 2026
Next, let's look at our main initiatives for the fiscal year ended March 2026.
Slide 23: Komehyo performance by sales channel
This shows the performance of Komehyo, the core business company in the brand and fashion business, broken down by sales channel. First, regarding purchase, the ratio of individual purchases reached a high level of 72%, driven by the growth of existing stores, aggressive store openings, and historic
Slide 24: Auction volume trend
This chart shows the trend in auction volume. Including the two operating companies that joined our group in the fiscal year ending March 2025, we currently operate a total of four corporate auctions. In the previous fiscal year, we maximized the frequency of auctions, primarily through online biddi
Slide 25: New store openings in Japan
This section concerns new store openings and growth of existing stores in Japan. While digital is the main battleground in retail, physical store touchpoints remain essential for improving the customer experience in the reuse market. Therefore, we continued our aggressive store opening strategy, whi
Slide 26: E-commerce sales
This is about Komehyo's e-commerce sales. "E-commerce sales," which represent sales conducted online, grew significantly by 132.7% compared to the same period last year. To cope with the strong purchasing activity, we have increased our staff and strengthened our operations, while also revamping our
Slide 27: Overseas business progress
This is about the progress of our overseas business. As you can see, we were able to expand our overseas stores at a pace exceeding our plan, opening 13 stores annually, primarily in Asian countries. This has led to increased brand awareness and the acquisition of new customers in each area. In Nort
Slide 28: Alliances providing appraisal expertise
This is an update on our alliances providing our "discerning eye" to external parties. Our joint venture with J. Front Retailing, JFR & KOMEHYO PARTNERS, is progressing ahead of schedule with the opening of nine MEGRÜS stores, a specialty buyback shop. Approximately half of our customers are first-t
Slide 29: Tire and wheel business
This is an overview of our tire and wheel business. In this consolidated fiscal year, driven by used tire procurement, summer tire sales, and the overseas expansion of our own-designed wheels, both sales and profits reached record highs, achieving four consecutive years of increased revenue and prof
Slide 30: Progress of medium-term management plan
Next, let's look at the progress of medium-term management plan.
Slide 31: Domestic reuse market outlook
The current state and outlook of the domestic reuse market are as follows: The market size is steadily expanding and is expected to reach 5 trillion yen by 2040. Furthermore, the domestic potential market, or so-called "hidden assets," is estimated to be approximately 91 trillion yen. The current vi
Slide 32: New medium-term management plan
To flexibly respond to changes in the business environment, our company publishes its plans annually using a rolling approach. This outlines the new medium-term management plan we have formulated, covering the period from March 2027 to March 2029. Our future goal is to become the world's No. 1 brand
Slide 33: Quantitative targets of medium-term plan
These are the quantitative targets for our medium-term management plan. Yesterday, May 14th, we announced our medium-term management plan, which is enclosed in a dark orange box, covering the period up to the fiscal year ending March 2029. By the fiscal year ending March 2029, we aim for sales of 31
Slide 34: Three basic policy pillars
As a basic policy to achieve this, we have set forth the following three pillars: • Achieving business growth • Deepening sustainable management • Advancing management with an awareness of capital
Slide 35: Competitive advantages
We believe our competitive advantage lies in three key areas: "human resources," "annual transaction volume," and "market share," which we have established through our consistent commitment to reuse since our founding. As our business grows, we will further strengthen these advantages and pursue sus
Slide 36: Three business areas and group assets
In our core brand and fashion business, we have defined three areas—'Buying and Selling,' 'Distribution Involvement,' and 'Market Growth Involvement'—and have focused on expanding these areas. This time, we would like to reiterate how these three areas are interconnected and collaborative, and how t
Slide 37: Trading, distribution and market growth involvement
① In our trading business, we maximize profits from sales by expanding our customer base both domestically and internationally through multi-brand strategies. ② In our distribution involvement business, we provide auctions and other platforms for corporate clients, accumulating stable commission inc
Slide 38: Responding to market fluctuations
Currently, global demand for luxury goods remains strong, and major brands are successively revising their primary market prices. Against this backdrop, we anticipate that the prices of branded goods in the reuse market will continue their upward trend in the medium to long term. Our company has enh
Slide 39: M&A strategy
Regarding future M&A strategies in our brand and fashion business, we will continue to consider areas such as entering global markets with significant growth potential, areas that will lead to improved customer value, and areas that will lead to the expansion of our existing businesses.
Slide 40: Resource allocation policy
This concerns our resource allocation policy. The image of fundraising and resource allocation is as follows: We will prioritize proactive inventory acquisition and capital investment to gain market share in the growing brand reuse market. Furthermore, while maintaining a certain level of financial
Slide 41: Cost of capital, ROE and ROIC
This document outlines our current situation and assessment regarding our cost of capital. For the fiscal year ending March 2026, our ROE was 15.7% and our ROIC was 7.3%. We have maintained an ROE that exceeds our cost of equity and WACC, demonstrating our steady progress in highly capital-efficient
Slide 42: Outlook for fiscal year ending March 2027
Next, I will discuss our outlook and initiatives for the fiscal year ending March 2027.
Slide 43: Factors affecting fiscal 2027 performance
The following is a summary of the factors affecting our performance for the fiscal year ending March 2027. The brand reuse market is expected to continue to see stable prices and strong demand. We will continue to focus on securing inventory, primarily through individual purchases, to expand our mar
Slide 44: Market forecast for main products
The market forecast for our main products is as follows: Overall, we expect prices to remain relatively stable, similar to the previous period. However, uncertainties such as geopolitical risks remain, so we will closely monitor developments and strive for flexible operations.
Slide 45: Consolidated earnings forecast
This is our consolidated earnings forecast for the fiscal year ending March 2027. This fiscal year, we aim to further expand both sales and profits by making maximum use of our diverse channels in both procurement and sales. In addition, we plan to continue making proactive investments for sustainab
Slide 46: Operating profit forecast analysis
This is an analysis of our consolidated operating profit forecast for the fiscal year ending March 2027. We aim for a consolidated operating profit of 10.8 billion yen for the fiscal year ending March 2027. Regarding sales, we plan a 114% increase compared to the previous year by securing ample inve
Slide 47: Dividend forecast
Regarding our dividend forecast: For the fiscal year ending March 2027, we plan to pay an interim dividend of 54 yen, a year-end dividend of 54 yen, and an annual dividend of 108 yen (an increase of 2 yen). Our business is in a growth phase, and we will continue to secure inventory and invest in gro
Slide 48: Focus for fiscal 2027
Our focus for the fiscal year ending March 2027 is to simultaneously achieve "market share expansion" and "improvement of profitability.“ In an increasingly competitive market environment, boosting our top line and expanding our market share is essential for the sustainable growth of our group. Ther
Slide 49: Domestic focus points
In particular, our domestic focus points are as follows: Domestically, we will maximize profits by strengthening our individual purchasing services and thoroughly implementing a "retail-first" approach. For individual purchasing, we will continue to expand our contact points through the opening of s
Slide 50: Overseas focus points
Our overseas focus is on developing new areas and establishing a global growth foundation. As you can see, we are accelerating our expansion, targeting ASEAN, the Greater Bay Area, and North America. Most recently, in addition to the Philippines where we established a subsidiary in February, we plan
Slide 51: Closing remarks
That concludes my explanation. Thank you for your attention.