ENVALITH
株式会社スタジオアリス logo

STUDIO ALICE Co.,Ltd.

2305・Standard Market・Services

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株式会社スタジオアリス logo
STUDIO ALICE Co.,Ltd.2305

Business

Studio Alice Co., Ltd. entered the children's photo studio business in 1992 and operates a nationwide photography service specializing in life-event occasions such as Shichi-Go-San, Omiyamairi (shrine visits), and birthdays. As of the end of FY2025 (ending February 2025), the company operated 419 stores in total—410 directly managed stores and 9 franchise stores—with the photography business accounting for 99.5% of consolidated net sales. Its primary customer base consists of child-rearing households with children ranging from infants to elementary school age, and in recent years the company has expanded its customer base to include the late-teens segment through "Furi Ho," a furisode (formal kimono) rental service for Coming-of-Age Day ceremonies. The costume manufacturing and wholesale business (subsidiary Kyoto Hosho Co., Ltd.) supplies photography costumes within the group, forming a vertically integrated business structure. The company moved to the Prime Market in 2022, then changed its market segment to the Standard Market in February 2025.

Business Model

The business is based on a pay-per-visit model in which customers visit a studio for photo sessions and product purchases. Demand is concentrated around seasonal events such as Shichi-Go-San (Seven-Five-Three festival) and Omiyairi (first shrine visit), resulting in a structure where the majority of sales are generated during peak seasons. Costumes are supplied in-house by the subsidiary Kyoto Hosho, achieving both cost control and quality differentiation. The furisode (long-sleeved kimono) rental service for coming-of-age ceremonies, "Furi Ho," offers pre-ceremony photo sessions bundled with rental service, contributing to higher unit prices and an expanded customer base. The school photo business and on-location photography services are also being cultivated as pillars of revenue diversification.

Company Strengths

Since opening its first children's photo studio in 1992, the company has expanded to all prefectures of Japan over more than 30 years. As of the end of FY2025 (ending February 2025), it operated 419 stores in total—410 directly-operated and 9 franchise stores—covering key market areas including 177 stores in the Kanto region, 64 in the Kinki region, and 46 in Kyushu. Nationwide brand recognition and customer-drawing power form a barrier to competitive entry.

Subsidiary Kyoto Hosho Co., Ltd. (factory in Kyotango City, Kyoto Prefecture) supplies photography kimono costumes produced in-house. Following the transfer of production from a factory in China, the company has established a domestic production system, pursuing quality control and cost reduction simultaneously. A unique lineup including Disney character costumes serves as a differentiating factor versus competitors.

The coming-of-age photography & furisode rental service "Furiho," launched in January 2020, represents a new revenue source leveraging the existing infrastructure of the children's photo studio (Studio Alice). In FY2025 (ending February 2025), the Photography Business segment profit rose 31.6% year on year to ¥2,870 million, with growth in "Furiho" reservations contributing to the improvement in profit.

ENVALITH's Perspective

For Q1 of FY2027 (ending February 2027), net sales continued to decline to ¥7,546 million (down 3.8% year on year), while operating profit rose to ¥229 million (up 8.5% year on year), securing profit growth. Cost of sales was significantly reduced to ¥6,010 million (from ¥6,322 million in the same period of the previous year), and the gross profit margin improved from 19.4% to 20.4% year on year. The optimization of the cost structure, which is supporting profit, can be positively evaluated. However, quarterly net income fell sharply to ¥111 million (down 29.0% year on year), mainly due to an increase in income taxes, etc. (from ¥41 million in the same period of the previous year to ¥127 million in the current period). This reflects the drop-off of the effect from the reversal of deferred tax assets recorded in the same period of the previous year (income taxes deferred adjustment of -¥75 million), and it should be noted that this does not represent an actual deterioration in underlying business earning power.

Net sales to external customers in the costume manufacturing and wholesale business remained sluggish at ¥53 million (down 20.2% year on year), and expansion of sales to customers outside the group remains halfway complete. At Shanghai Fengjiang Apparel Co., Ltd. (上海豊匠服飾有限公司), raw material price increases have continued, and segment profit declined to ¥56 million (down 12.8% year on year), reflecting lower profitability. With external pressure from rising raw material costs continuing, developing sales channels outside the group will be key to improving profitability.

Net sales declined by approximately 19% over four fiscal years, from ¥40,672 million in FY2022 (ended February 2022) to ¥32,928 million in FY2026 (ended February 2026), continuing a structural contraction trend driven by external factors such as the declining birth rate and the weakening of the Shichi-Go-San (七五三) custom. The full-year forecast for FY2027 (ending February 2027) projects increased sales and profit, with net sales of ¥33,600 million (up 2.0% year on year) and operating profit of ¥2,450 million (up 16.9% year on year). However, due to the seasonally concentrated structure in which the majority of sales occur around the Shichi-Go-San season in November, the progress rate in Q1 remained low at 22.5% for net sales and 9.4% for operating profit, and trends in Shichi-Go-San demand in the second half will be key to achieving the full-year forecast.

Growth Strategy

Compensating for the decline caused by the falling birthrate through three pillars: 'Furi-Ho,' school photography, and on-site photography

A service that provides Coming-of-Age Ceremony (seijin-shiki) photography and furisode (long-sleeved kimono) rental as an integrated offering. Leveraging the existing store network and in-house costume production system, it aims to generate seasonal demand outside of Shichi-Go-San (Seven-Five-Three) celebrations. Reservation acquisition activities continued into Q1 FY2027 (ending February 2027).

Beginning April 29, the company launched the 'Early-Shoot Shichi-Go-San Campaign' and 'Shichi-Go-San Outing Kimono Rental Reservations,' a measure to front-load sales that are otherwise concentrated in November. The initiative aims to smooth out seasonal fluctuation risk and secure customers through early reservations.

By expanding the school photography business for schools and kindergartens, as well as the on-site photography area covering Omiyamairi (shrine visits), Shichi-Go-San, and corporate events, the company is cultivating revenue sources that do not depend on studio visits. This serves to offset the decline in studio foot traffic caused by the falling birthrate.

The company continues to close or relocate unprofitable stores and carry out renovations (in Q1 FY2027 (ending February 2027): 1 relocation, 1 closure, 25 renovations), improving profitability per store. This contributes to reducing cost of sales and has supported operating profit growth despite declining revenue.

Shanghai Fengjiang Apparel Co., Ltd. is focusing on acquiring customers outside the group. Through cost optimization amid rising raw material prices and expansion of external sales, the company aims to strengthen the segment's revenue base. Currently, external sales remain low at ¥53 million.

Last updated: July 17, 2026