Aoyama Trading Co., Ltd.TSE: 8219

FY3 2026 Second Quarter (Interim Period) Financial Results Briefing(PDF / 2MB)

· Issued by Aoyama Trading Co., Ltd.


FY3/2026

Second Quarter (Interim Period) Financial Results Briefing

AOYAMA TRADING Co., Ltd.

  1. Progress of Initiatives Under the New Management System

  2. Measures to Realize Management Conscious of

    Cost of Capital and Stock Price

  3. The First Half of FY3/2026 Results

  4. Revised Plan of FY3/2026

  5. Group Business



81.9 billion yen

YoY :

-2.5 billion yen

Compared to the plan :

-2.9 billion yen

Consolidated Net Sales

70 million yen

YoY :

-500 million yen

Compared to the plan :

+70 million yen

Consolidated Operating Income

-800 million yen

YoY :

-200 million yen

Compared to the plan :

+300 million yen

Consolidated Net Income

First Half Highlights

  • Transition to new management system in April 2025.

  • Osamu Aoyama became Chairman and Taizo Endo became President.

  • Revised organizational structure and promote business transformation in new management system.

  • Although consolidated net sales were down 2.9 billion yen from the plan, consolidated operating income and consolidated net income exceeded the plan due to efforts to improve the gross profit margin and raise the efficiency of

SG & A expenses.

「Aim to Become the Overwhelming No.1 Company of Business Wear Brand」

We will take a fresh look at the business wear business, which is our starting point, and enhancing our brand power, profitability, and competitive advantage as a challenger. Also, we aim to become the company that can embody the Aoyama mindset of "Let's Work for People who Work"

Three Core Policies

Promotion

of OMO

Promotion

of DX

Promotion of

Human Capital Management

Established New Divisions

「OMO and Retail Div.」「DX Strategy Div.」「Human Resource Strategy Div.」



Review and Issues After the Transition to the New Management System

President Taizo Endo

After the transition to the new management system, we started with a fundamental review of the business wear business.

As we aim to realize growth in the business wear business, we will

thoroughly review the "customer's perspective".

We reviewed various measures and made new plans by returning the basics of business by thinking such as "Are the products attractive?", "Are sales areas and prices easy to understand?" and "Are proposals made to meet potential customer needs?".

While these circumstance, we determined that employee morale and perception of issues more realistic are important. Therefore, we visit each stores to express gratitude directly, and listen to the their issues.

We are making efforts to solve any issues that are found as fast as we can.

We recognized the most significant issue is "response to the decrease

in the number of customers".

We will face these challenges head-on and do our utmost to improve our performance and corporate value.



The most significant issue for management is to deal with the decrease in the number of customers.

We implement measures with top priority on resolving these issues.

  • Improvement of gross profit ratio and operating profit ratio

  • Build & Scrap of unprofitable store

  • Reduction of headquarters expenses

    Recognition of Current Issues
  • Response to the casualization of office wear

  • Response to decline in sales of suits

  • Differentiation of products and services

  • Review of business portfolio

Promotion of

business portfolio management

  • Withdrawal from low-profit businesses and creation of new businesses

  • Selection and concentration of management resources

Improvement in profitability

Response to the decrease in the number of customers



Implement measures with top priority



Debut!


"Minna-no-suit" is the strongest solution to response decrease in the number of customers.

At a circumstance that prices continue to rise, we aim to embody our founding philosophy of "contributing to society through the sale of better goods at lower prices" in the modern context, and to gain the sympathy of all of our customers in terms of both price and quality.

Overview of "Minna-no-suit"

⑴ High performance in cost

・Top and bottom set 12,980 yen (tax included)

・Price setting that everyone can sympathize with even in the harsh circumstance of declining real wages.

⑵ Quality that only we can provide

・Brought the experience and know-how gained from 62 years of

dedicated customer service together.

・Without using a hair core or shoulder pad.

Realized the three-dimensional items by pattern, ironing work and sewing technology.

⑶ Feature-rich

・Washable

・Stretch material

⑷ Simple sizing

・Simple size range such as S, M and L are used instead of the conventional size.

⑸ Expand to all stores

・Available at "online store" and all stores of "Yofuku-no-Aoyama" and "SUIT SQUARE".



Key Strategic Product "Minna-no-suit"

("Minna" means "everybody" in Japanese)



"Suit that suits everyone"

We realized suit's price that is easy to buy and that all customers can sympathize with by defying the common belief that "high quality = high price".

This suit can support various scenes with not only the cost performance but also have "neat feel" and

"fun" that are required for suits.





High price

GOOVI

Hilton

SavileRow

Casual

ACTIBIZ

PERSON'S

FOR MEN

Business

Minna-no-suit

Low price

Launch marketing strategy based on "Minna-no-suit"

We positioned "Minna-no-suit" as a staring point to build a connection with our customers.

We will expand customers and fostering loyal customers by linking "Minna-no-suit" to the CRM strategy.

Marketing to Potential Customers

"Minna-no-suit" is a starting point to build a connection with our customers

Expand customer

Fostering Loyal Customers

Creating points of

contact with customers

CRM Strategy





Progress for Mid-Term Management Plan of the FY3/2025 to FY3/2027 and Issues



Maintaining and improving the profitability

of existing businesses

Expanding market share through new store open

Profit-oriented management

Order

Evaluation

Gross profit of order YoY 94.7%

‣Sales of order in business

wear business was

4.6 billion yen.

‣Sales of 2Q was steadily but unfavorable sales of 1Q affected to interim period

‣There were impacts of campaign that expand order services to all stores in the previous fiscal year.

‣Current sales are favorable

due to strengthen promotion

‣Gross margin improved by

2.3pt.

Reduction and control of headquarters expenses

Evaluation

SG & A expense

was controlled

‣Controlled personnel and

sales promotional expenses.

‣Sales promotion expenses will increase in second half of the fiscal year instead of controlled in first half.

‣Increase cost efficiency by allocating expenses to highly cost-effective measures through sales promotion effect analysis

Inventory reduction

Evaluation

Progress as planned by adjusting purchase adjustment

‣There are difference of progress by items, but generally, in line with plan.

‣Transferred inventory

between in

"Yofuku-no-Aoyama" and "SUIT SQUARE".

‣Having common inventory between "Yofuku-no-Aoyama" and "SUIT SQUARE", which contributed to the optimization inventories.

Store opening

Evaluation

①Store relocation was given priority

②Store of "AO+"

opened

‣Priority was given to relocation of existing stores rather than opening

new stores.

(5 stores were relocated)

‣Opened new concept store "AO+" (Aoyama Plus) in Tokyo on October 3.

‣Plan to open dominant stores

from the second half.

EC

Evaluation

Sales of EC

YoY 107.0%

‣Demand for cold-to-touch products increased due to the continuing heat wave.

‣EC Malls performed well, contributing to inflow to own EC sites.

‣Held a campaign for people who is refrain going out due to intense heat.



Progress for Mid-Term Management Plan

of the FY3/2025 to FY3/2027 in Interim Period of the FY3/2026



Implementing the "Five Basic Strategy" to achieving the Mid-Term Management Plan, which will conclude in the fiscal year ending March 31, 2027, the company has positioned "issues to be addressed from now on" as "important management issues" and will address them efficiently.

Issues to be Addressed from Now On





Three Core Policies Five Basic Strategy

Issues to be addressed from now on

⑴ Restructuring of the brand strategy

‣Restructuring positioning of brand

‣Relocation of existing stores

Promotion

of DX

Promotion of OMO

Promotion of Human Capital

Maintaining and improving the profitability of existing businesses

Profit-oriented

management

Expanding market share through new store open

Strengthening Group Governance

‣Strengthen store openings of

new concept stores

⑵ Sophistication of marketing

‣Restructuring CRM strategy

‣Promote data driven management

by DX

⑶ Consideration of global strategy

Managem ent

Initiatives of

Sustainability

Achievement of the
  • Expanding sales channels through

cross-border EC and EC malls

⑷ Review of profit structure

‣Structural reforms to reduce

headquarters costs

‣Promoting management with

awareness of capital profitability

⑸ Reform of business portfolio

‣Restructuring business portfolio

‣Reallocation of management resources

Mid-Term Management Plan


TOPICS



"AO+" (Aoyama Plus), which is the store that can provide new

experience of shopping opened in October 2025.

・We opened "AO+" a new concept store in Tokyo utilizing digital technology and targeting the business persons of generation Z.

・Proposing new experiences with the latest digital technology, such as proposing sizes and coordination through

"digital measurement" and "AI style diagnosis".

・Strengthen the opening of new concept stores mainly in the Tokyo metropolitan area.

・"AO+" aims to provide customers with a comfortable and seamless experience for searching, finding, and purchasing clothes.









The new series, "CHANTOWA" debuted on September 2025.

・"CHANTOWA" debuted in "SUIT SQUARE"

・We aim to create a product that can solve the potential needs of "I want to be properly"

・Mai Shiraishi was selected as an ambassador and appeared in key visuals and commercials in which she actually wore the products.

・We have been facing business wear for a long time. We will propose one of the correct answers that you can wear

with confidence.





  1. Progress of Initiatives Under the New Management System

  2. Measures to Realize Management Conscious of

    Cost of Capital and Stock Price

  3. The First Half of FY3/2026 Results

  4. Revised Plan of FY3/2026

  5. Group Business



Change in PBR

  • We disclosed "Measures to Realize Management Conscious of Cost of Capital and Stock Price" on November 2024.

  • In the disclosure, in addition to strengthening shareholder returns, the company announced that it would improve capital efficiency, formulate additional new growth strategies, and implement a drastic organizational reform.

  • In response to the above announcement, a new organizational structure was established and additional strategies were formulated.

  • Although the share price is on an upward trend, the latest PBR was 0.67x, but still below 1x.

    In addition to profit growth, we recognize that improving capital profitability and refining our growth strategy in a timely manner is important to aim for a P/B 1x.

    Change in PBR at end of period

    (FY3/2018 to FY3/2025)

    1.0

    0.92

    0.8

    0.56

    0.55

    0.6

    0.49

    0.4

    0.23

    0.25

    0.20

    0.28

    0.2

    0.0

    (x)

    2018/3

    2019/3

    2020/3

    2021/3

    2022/3

    2023/3

    2024/3

    2025/3

    Change in PBR at end of month

    (March 2025 to September 2025)

    0.8

    0.7

    0.63

    0.68

    0.67

    0.6

    0.55

    0.56

    0.59

    0.59

    0.5

    0.4

    (x)

    2025/3

    2025/4

    2025/5

    2025/6

    2025/7

    2025/8

    2025/9





    ※Net assets per share (actual) and share price (closing price) are as of the end of

    each fiscal year.

    ※Net assets per share:

    March to July are the results of the end of FY3/2025 August and September are the results of June 2025

    ※Share prices (closing prices) are as of the end of each business month.

    Change in ROE

  • ROE for the FY3/2025 was 5.3%, lower than the previous fiscal year.

  • Reduction of total assets and net assets progressed as planned through inventory reduction and

    acquisition of treasury shares, etc.

  • In addition to continuing to reduce assets to improve capital profitability, we will achieve net income targets and improve ROE.

ROE

(%)

2018/3

2019/3

2020/3

2021/3

2022/3

2023/3

2024/3

2025/3

5.0

2.6

-8.1

-21.8

0.8

2.6

5.9

5.3

Ratio of net income to net sales

(%)

10.0%

2.3%

0.8%

2.3%

2018/3

2019/3

2020/3

2021/3

2022/3

2023/3

2024/3

2025/3

-7.8%



5.0%

0.0%

-5.0%

-10.0%

4.5%

5.2% 4.8%



Turnover of total assets

(times)

0.7

0.6

0.5

0.4



Financial leverage

(x)

1.72

1.76

1.84

1.98

2.03

2.01

1.96

1.84

2018/3

2019/3

2020/3

2021/3

2022/3

2023/3

2024/3

2025/3

2.2

2.0

1.8

1.6

0.65 0.64

0.57

0.56

0.58

0.60

0.51

0.46



2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3



Balance sheet optimization and turnover of total assets

  • Total assets for the FY3/2025 decreased by 17.1 billion yen from the previous fiscal year.

  • The reduction of total assets to 300.0 billion yen is proceeding as planned.

  • As a results of the above, the turnover of total assets was 0.6, which is 0.02pt higher than previous fiscal year.

  • In addition to reduction of total assets, we will improve capital profitability by reducing net assets through acquisition of treasury shares etc.

    Balance sheet optimization Turnover of total assets

    Liabili

    ties

    154.7

    billion

    yen

    Total

    assets

    335.5

    billion

    yen

    Net

    assets

    180.8

    billion

    yen

    4,000 0.8

    Net assets

Liabili

ties

Com press

Total assets 300.0

billion yen

Liabili

ties

136.9

billion

yen

Total

assets

318.4

billion

yen

Net

assets

181.4

billion

yen

3,500

3,000

2,500

3,294 3,227 3,362 3,355

0.56

0.51

3,184

0.58

0.60

3,000

0.70

0.7

0.6

0.5

2,000

1,500

1,000

0.46

1,614

1,659

1,835

1,936

1,947

2,100

0.4

0.3

0.2

2024/3

2025/3 2027/3

(Plan)

500

2021/3 2022/3 2023/3 2024/3 2025/3 2027/3

(Plan)

Total assets (100 million yen)
Sales (100 million yen)

Turnover of total assets (Times)

0.1

Share split

The Company will conduct a share split for the purpose of improving the liquidity of the Company's shares and further expanding the investor base by reducing the investment amount per share in order to create an environment in which shareholders and investors can easily invest. We hope to increase the number of our fans who will support our future challenge and growth investment.

Acquisition of treasury shares

In accordance with the shareholder return policy set forth in the Medium-Term Management Plan for the fiscal year ending March 31, 2025 to the fiscal year ending March 31, 2027, the company will implement the Plan in order to enhance shareholder returns and improve capital efficiency.

On Tuesday, March 31, 2026, the Company will conduct a 3-for-1 share split of common shares held by shareholders listed or recorded in the shareholders' register.

Date of Public Notice of the Record Date

Monday, March 16, 2026 (scheduled)

Record Date

Tuesday, March 31, 2026

Effective Date

Wednesday, April 1, 2026

Class of shares to be acquired

Common share of the Company

Total number of shares acquired

Up to 1.4 million shares

(2.86% of the total number of shares issued (excluding treasury shares))

Total value of shares acquired

Up to 3 billion yen

Acquisition period

From November 12, 2025 to March 24, 2026

Acquisition method

Market purchase on the Tokyo Stock Exchange

Shareholder Return Policy

During this mid-term management plan for FY3/2025 to FY3/2027, we will maintain its basic policy of actively and stably returning profits to shareholders while investing in growth to maintain and strengthen competitiveness and working to improve profitability and strengthen its financial position. In addition, to realize management that is conscious of the cost of capital and the share price, and to further advance initiatives to increase corporate value, we will adopt the higher of the consolidated dividend payout ratio of 70% or the dividend on equity ratio (DOE) of 3% and we will improve capital efficiency and increasing dividends over the mid to long term and pay dividends through profit growth. The company will flexibly conduct share repurchases with the aim of improving capital efficiency, while taking into account business performance, capital conditions, and market conditions, including stock prices. During the period of the Medium-Term Management Plan, the company will purchase up to 10 billion yen of its treasury share.

  • Dividends

Reference date

Dividends per share

Q2-end

Year-end

Total

Previous Forecast

(Announced on May13, 2025)

55.00 yen

81.00 yen

136.00 yen

Revised Forecast

81.00 yen

136.00 yen

Current Period Results

55.00 yen

Previous Period Results

(FY3/2025)

30.00 yen

104.00 yen

134.00 yen



  1. Progress of Initiatives Under the New Management System

  2. Measures to Realize Management Conscious of

    Cost of Capital and Stock Price

  3. The First Half of FY3/2026 Results

  4. Revised Plan of FY3/2026

  5. Group Business



Segment

Overview

Business Wear Business

Operating 726 stores nationwide, including Yofuku-no-Aoyama and SUIT SQUARE (as of the end of September 2025)

This segment also includes Blue Reverse Co., Ltd., Eisho Co., Ltd., MDS Co., Ltd., Fukuryo Co., Ltd., Aoyama Suits (Shanghai) Co., Ltd., and Melbo Men's Wear, Inc.

Credit Card Business (Aoyama Capital Co., Ltd.)

This business issues and manages the Aoyama Card and other credit cards while seeking to obtain new customers, thus supporting efficient sales promotion in our Business Wear Business.(The number of valid members stood at 3.81 million as of the end of August 2025)

Printing and Media Business

(ASCON Co., Ltd.)

Operating service mainly "total sales promotion support business" for distribution and retail

stores nationwide.

This business involving in distribution and retail supporting business, digital marketing business, and the planning and production of various publications.

Sundry Sales Business (Seigo Co., Ltd.)

Concluding a distributorship agreement for the 100-yen shop DAISO.

Operating stores for using closed stores of Yofuku-no-Aoyama and establishing stores in Yofukuno-Aoyama to generate synergies.

Operating 101 stores as of the end of August 2025.

Total Repair Service Business (Minit Asia Pacific Co., Ltd)

Providing comprehensive repair services, including shoe repair and key duplication. Operating 255 stores in Japan and 376 stores overseas (as of the end of September 2025)

Franchisee Business (glob Co., Ltd.)

Operating 42 "Yakiniku King" and 13 "Yuzu An" as a franchise of The Monogatari Corporation,

19 "2nd STREET" as a franchise of Geo Holdings Corp. and 13 "Anytime Fitness" as a franchise of Fast Fitness Japan Inc. (as of the end of September 2025)

Real Estate Business (Aoyama Trading Co., Ltd., Real Estate Business)

The company is engaged in the comprehensive management of real estate owned and leased, as

well as the business related to lease and transfer of real estate.

Others

WTW Corporation Customlife Co., Ltd

WTW Corporation︓Selling original furniture, interior goods, and apparel.

Operating seven stores (as of the end of September 2025) Customlife Co., Ltd.: Operating owned media "Customlife"

"Achieved our plan of operating income"

Sales was struggled, but all profit phase under the operating income achieved our plan by improvement of gross profit rate and efficiency of SG&A expenses.

Unit :

100 million yen



Results of

FY3/2025

Results of

FY3/2026

YoY

Compared to the initial plan

Main Factors of Fluctuations

(Compared to the initial plan)

Net sales

845

819

-25

-29

Reference:

Result by Business Segment of First Half of

the FY3/2026

Gross profit

423

417

-6

-11

Credit Card Business:+3.0pt

Total Repair Service Business:+1.7pt Franchisee Business:+0.4pt

Gross profit rate

50.1%

50.9%

+0.8pt

+0.4pt

SG & A expenses

417

416

-0.6

-12

The result was mainly affected by non-

consolidated factors. Reference:

Non-consolidated Results for the First Half of the FY3/2026

Operating income

6

0.7

-5

+0.7

Ordinary income

5

2

-2

+2

Non-operating income +340 million yen

Non-operating expenses +120 million yen

Net income

-6

-8

-2

+3

Extraordinary loss -110 million yen

Note:Figures are rounded down to the nearest unit.

Sales of franchisee business, credit card business, and sundry sales business was favorable, but business wear business was unfavorable.

Operating income was in line with the plan in each business segment despite a significant decrease in the business wear business.

Unit :

100 million yen



Results of FY3/2025

Results of FY3/2026

YoY

Compared to the initial plan

Business Segment

Net sales

Operating income

Net sales

Operating income

Net sales

Operating income

Net sales

Operating income

Business Wear

533

-15

501

-23

-31

-8

-22

-2

Credit Card

26

11

26

12

+0.8

+1

-0

+1

Printing and Media

50

-1

48

-1

-1

+0

-3

-0

Sundry Sales

76

1

77

0.9

+0.7

-1

-0

-0

Total Repair Service

71

0.3

70

1

-0

+1

-0

+1

Franchisee

76

5

83

5

+6

+0

+1

+1

Real Estate

23

5

22

5

-0

-0

+0

+0

Others

5

-1

5

-0

-0

+1

-0

-0

Adjustments

-18

0

-17

0

+1

+0

-4

-0

Total

845

6

819

0.7

-25

-5

-29

0.7

Note : Figures are rounded down to the nearest unit.

Unit:

100 million yen



Results of FY3/2025

Results of FY3/2026

YoY

Compared to the initial plan

Main Factors of Fluctuations

(Compared to the initial plan)

Net sales

521

490

-30

-20

Existing store's YoY: 96.2%

Gross profit(rate)

285(54.9%)

273(55.7%)

-12(+0.8pt)

-11(-0.1pt)

Restricting discount sales during the peak selling season.

SG & A expense

299

295

-3

-8

Utility expenses :

-170 million yen System administration expenses:

-120 million yen Depreciation expense:

-200 million yen

Personnel

expense

114

115

+1

+0

Selling expense

45

44

-1

-0

General and administrative expenses

52

54

+1

-6

Property

expenses

86

81

-5

-2

Operating income

-13

-22

-8

-3

Ordinary income

-3

-3

+0

-1

Net income

-6

-5

+0.7

+0.3

Note:Figures are rounded down to the nearest unit



  1. Progress of Initiatives Under the New Management System

  2. Measures to Realize Management Conscious of

    Cost of Capital and Stock Price

  3. The First Half of FY3/2026 Results

  4. Revised Plan of FY3/2026

  5. Group Business



"We have maintained our initial plan for operating income and other profit phase."

Revised plan of sales is under the initial plan, but we have maintained profit plan by improving gross profit rate and efficiency of SG & A expenses.

Unit:

100 million yen



Revised plan

Results of FY3/2025

YoY

Initial plan

Compared to the initial plan

Main Factors of Fluctuations from the initial plan

Variance

(%)

Variance

(%)

Net sales

1,970

1,957

+12

100.7

1,998

-28

98.6

Reference:

Revised Plan of Profit and Loss by Each Business Segment for the FY3/2026

Gross profit

1,036

1,005

+30

103.0

1,045

-9

99.1

Non-consolidated gross profit rate for second half +0.3pt

(Full year +0.2pt)

Gross profit rate

52.6%

51.4%

+1.2pt

-

52.3%

+0.3pt

-

SG & A

expenses

896

880

+15

101.8

905

-9

99.0

Non consolidated:

Personnel expense +90 million yen Selling expense +280 million yen General and administrative expenses

-520 million yen

Property -350 million yen

Operating

income

140

125

+14

111.3

140

±0

100.0

Reference:

Revised Plan of Profit and Loss by Each

Business Segment for the FY3/2026

Ordinary

income

140

126

+13

110.9

140

±0

100.0

Net income

95

93

+1

101.1

95

±0

100.0

Note:Figures are rounded down to the nearest unit.

Operating income revised upward from the initial plan in total repair service business and franchisee business.

In the business wear business, profit margin is expected to improve by reviewing pricing strategy and optimizing procurement costs.

Unit :

100 million yen



Revised plan

Compared to the

YoY

(%)

initial plan

(%)

Business segment

Net sales

Operating income

Net sales

Operating income

Net sales

Operating income

Net sales

Operating income

Net sales

Operating income

Business Wear

1,318

91

-13

+7

99.0

108.7

-17

±0

98.7

100.0

Credit Card

53

20

+0

+0

100.7

101.1

-1

±0

98.1

100.0

Printing and Media

110

1

+0

+2

100.4

-

-4

±0

96.5

100.0

Sundry Sales

153

1

+1

+0

101.2

106.0

±0

+0

100.0

150.0

Total Repair

Service

145

3

+3

+1

102.6

186.0

±0

+2

100.0

300.0

Franchisee

174

12

+11

+0

107.3

107.3

+1

+1

100.6

109.1

Real Estate

45

11

-0

-0

98.7

97.2

±0

±0

100.0

100.0

Others

10

-1

-1

+1

90.0

-

-3

-1

76.9

-

Adjustment

-38

2

+9

+0

-

154.0

-4

-2

-

-

Total

1,970

140

+12

+14

100.7

111.3

-28

±0

98.6

100.0

Note:Figures are rounded down to the nearest unit.

Earlier from Aoyama Trading

All Aoyama Trading news releases