FIT EASY Inc.

Business Details

The company operates "Amusement Fitness Clubs" that combine fitness machines with 27 types of amusement services, including studios, high-concentration oxygen rooms, golf, lounges, saunas, and self-service esthetics. Revenue is composed of three categories: directly-operated sales generated by company-run stores; operating sales, consisting of royalties and system usage fees from franchise stores; and development sales, comprising franchise fees, equipment sales, and sales of directly-operated stores. As of the end of April 2026, the company operated 275 stores with 261,527 members.

Recent Overview

Continued store openings after reaching 250 stores in January 2026; interim net sales rose sharply, up 58.2% year on year

In H1 FY2026 (ending October 2026) (November 2025 to April 2026), the company achieved net sales of ¥6,705 million (up 58.2% year on year), operating profit of ¥1,607 million (up 48.2% year on year), and interim net profit of ¥1,105 million (up 52.9% year on year). After reaching 250 stores in January 2026, the company continued to open new stores, expanding to 275 stores and 261,527 members by the end of April 2026. Reflecting strong performance, the company revised its full-year earnings forecast upward (net sales of ¥14,322 million, operating profit of ¥3,506 million) and implemented an interim dividend of ¥26 per share (ordinary dividend of ¥20 plus a commemorative dividend of ¥6) including a commemorative dividend for the change of market listing to the TSE Prime Market and Nagoya Stock Exchange Premier Market. Operating cash flow improved significantly to ¥1,111 million from ¥601 million in the same period of the prior year.

Key Products

Growth Drivers

• Continued expansion of the franchise store network through ongoing new store openings (238 stores at end of FY2025 (ending October 2025) → 275 stores at end of April 2026)
• Expansion of stock-type FC operating sales (royalties, etc.) in line with membership growth (224,740 members → 261,527 members)
• Flow-type development sales (franchise fees, equipment sales, sale of directly-operated stores) accompanying new franchise store openings
• Differentiation and improved member retention through 27 types of amusement services
• Improved customer satisfaction and reduced churn through the AI Healthcare Automation Fit Easy App
• Market expansion driven by a shift in consumer attitudes toward health and wellness (from viewing spending as "mere expense" to "valuable investment")

Risks

• Risk of fluctuation in development sales (flow revenue) due to a slowdown in the pace of new store openings
• Intensifying competition for market share amid an increase in competing formats such as low-price gyms and Pilates studios
• Deterioration in consumer sentiment due to rising energy and raw material prices and consumer price inflation
• Risk of decreased royalty income due to deteriorating performance or withdrawal of franchise stores
• Increased head office administrative costs and greater difficulty securing personnel as the number of stores expands
• Risk of rising energy and raw material prices due to shifts in the political situation