GOKURAKUYU HOLDINGS CO.,LTD.

Business Details

The only reportable segment domestically, operating bathing facilities under the "Gokurakuyu" and "RAKU SPA" brands. It runs a network of directly-operated and franchised stores, earning admission fees, food and beverage, spa treatment, and merchandise sales revenue at directly-operated stores, and royalty and product sales revenue from franchise stores. In December 2025, the company newly opened "RAKU SPA Station Musashi-Koganei" as a directly-operated store. Equity-method affiliates also operate facilities such as "Shorakunoyu." Since the deconsolidation of the China group at the end of December 2023, the segment now comprises "Japan" only as a single segment.

Recent Overview

FY2026 (ending March 2026) saw increased revenue and profit, marking record profits for the second consecutive year, along with the company's first-ever dividend payment

Net sales reached ¥16,246 million (up 7.1% year on year), operating profit ¥1,236 million (up 8.5%), and profit attributable to owners of parent ¥928 million (up 20.7%), with all profit items setting new record highs. Full-year operation of stores opened in the prior fiscal year, admission fee revisions, and continued anime and Vtuber collaboration events contributed to the results. In December 2025, the company newly opened "RAKU SPA Station Musashi-Koganei" as a directly-operated store. On the other hand, initial costs for new stores and increased labor costs from minimum wage hikes partially weighed on profit. Earnings guidance for FY2027 (ending March 2027) has not yet been determined. The company implemented a year-end dividend of ¥6 per share (funded from capital surplus) for the first time, with a payout ratio of 20.3%.

Key Products

Growth Drivers

• Steady demand for bathing facility usage supported by rising health consciousness and continued sauna popularity
• Acquisition of a broad customer base and enhanced customer traffic through collaboration events with anime content and Vtubers
• Increased customer spending per visit through admission fee revisions
• Sales expansion through aggressive rollout of the urban-style new format (RAKU SPA Station), with the Adachi-Kohoku store scheduled to open around spring 2027
• Continued sales uplift from full-year operation of stores opened in the prior fiscal year
• Stable investment gains from equity-method affiliates (¥99 million in FY2026 (ending March 2026))

Risks

• Increased operating costs due to persistently high energy and raw material prices
• Continued rise in labor costs due to minimum wage revisions and other factors
• Short-term profit pressure from initial costs recognized upon new store openings
• Risk of impairment of fixed assets (impairment loss of ¥150,939 thousand in FY2026 (ending March 2026), an increase year on year)
• Decrease in cash balance (¥1,519 million at fiscal year-end) due to expanded investing cash flow (expenditure of ¥2,081 million in FY2026 (ending March 2026))
• Uncertainty in earnings outlook as full-year earnings guidance for FY2027 (ending March 2027) has not been determined
• Risk of significant decline in customer visits due to natural disasters, spread of infectious diseases, etc.
• Risk of fluctuation in financial costs, including increased syndicated loan fees (from ¥2 million in the prior period to ¥29 million in the current period)