ENVALITH
株式会社エービーシー・マート logo

ABC-MART,INC.

2670・Prime Market・Retail Trade

Official website
株式会社エービーシー・マート logo
ABC-MART,INC.2670

Business

ABC-MART, Inc. is a shoe retail company operating 1,099 stores in Japan and 400 stores overseas (South Korea, Taiwan, the United States, and Vietnam) through formats such as "ABC-MART," "ABC-MART GRAND STAGE," and "ABC-MART SPORTS." In addition to selling national brand products, the company owns proprietary brands such as "HAWKINS," "Danner," and "ABC Select," handling everything from planning and manufacturing through to sales. It is the top company in the domestic shoe market with approximately a 20% share, and maintains a broad customer base spanning sports, casual, leather, kids, and other wide-ranging categories, regardless of gender or age group.

Business Model

Products planned in-house and produced at domestic and overseas contract factories, along with limited and joint-planning products of national brands, are sold through directly-operated stores and online. Profitability is secured by combining high-gross-margin proprietary brands with national brands that have strong customer-drawing power. The company achieved a consolidated operating margin of 16.8% (FY2025, ending February 2025), maintaining its targeted double-digit level. Capital expenditure and working capital are funded with internal funds, and the company maintains debt-free management.

Company Strengths

Japan's largest shoe retailer with roughly a 20% share of the domestic footwear market (approximately ¥1.2 trillion in size). In FY2025 (ended February 2025), the domestic segment posted net sales of ¥258,010 million and segment profit of ¥53,096 million. Both total and existing stores achieved sales growth of 8.7% year on year, while average customer spend also trended upward, rising 7.3% year on year.

In FY2025 (ended February 2025), the consolidated operating margin remained at an exceptionally high 16.8% for a retailer. Cash and cash equivalents reached ¥197,600 million (as of the end of FY2025), reflecting a self-funded management approach with no reliance on interest-bearing debt. Total net assets stood at ¥369,747 million, indicating strong financial soundness.

The company owns proprietary brands such as HAWKINS, Danner, White's Boots, and ABC Select, and operates an SPA (Speciality store retailer of Private label Apparel) model that integrates planning, manufacturing, and sales. It also offers numerous limited-edition products through joint planning with national brands, achieving differentiation from competitors and improving gross profit margin.

ENVALITH's Perspective

In Q1 of FY2027 (ending February 2027), net sales were ¥105,483 million (up 8.0% year on year), operating profit was ¥20,316 million (up 8.3%), ordinary profit was ¥21,030 million (up 10.3%), and quarterly net profit attributable to owners of the parent was ¥14,296 million (up 10.4%), exceeding the prior-year figures across all metrics. Against the full-year forecast (net sales of ¥400,800 million, operating profit of ¥65,600 million), Q1 progress rates stood at 26.3% for net sales and 30.9% for operating profit, indicating generally steady progress, and the company has kept its full-year forecast unchanged.

The overseas segment saw a significant recovery, with net sales of ¥28,912 million (up 10.8% year on year) and segment profit of ¥1,387 million (up 29.2%). South Korea posted growth of +13.1% on the back of consumption recovery following the lifting of martial law and an increase in inbound tourism, while Taiwan also performed well with +14.5% growth. However, the overseas segment profit margin remained at only 4.8%, and the gap with the domestic margin (24.3%) remains substantial. Uncertainty continues in the US due to tariff policy effects, and external factors such as South Korea's political situation and the sustainability of yen depreciation warrant continued close monitoring.

Factors driving the sales increase in the current quarter include increased inbound demand against the backdrop of yen depreciation (an external factor), and a rapid expansion in demand for hands-free shoes, sandals, and boots (sandals +16.9%, kids +14.2%). As long as these external tailwinds persist, maintaining existing-store growth can be expected; however, a headwind has also emerged in the form of declining items purchased per customer due to rising prices, and whether this can continue to be offset by an increase in average spend per customer will be the focal point for the second half.

Growth Strategy

Pursuing sustainable growth along three axes: domestic multi-format store expansion, digital enhancement, and new overseas market entry

Accelerated rollout of the latest store formats, including a hybrid GRANDSTAGE4.0 and ABC-MART2.0 store opened at LaLaport Toyosu. Multi-format stores reached 147 locations, with mutual customer referrals with OSHMAN'S aimed at boosting average spend per customer and purchase frequency. In Q1 FY2027 (ending March 2027), 10 new domestic stores were opened and 21 stores were renovated.

The wear and other category expanded rapidly, up 35.9% year on year to ¥8,577 million. The company is pursuing product diversification to address growing demand for running and walking as well as the expanding hands-free shoe market, aiming to move beyond a shoes-only focus and broaden its customer base.

With new store openings at a street-level location in Seongsu, South Korea, and at Lotte Aqua Mall in Busan, the number of GRANDSTAGE4.0-format stores in South Korea expanded to 5. Performance in Taiwan also remained solid, centered on large shopping malls. Overseas segment profit recovered substantially, up 29.2% year on year, with profitability improvement progressing.

The company is strengthening customer touchpoints and advancing an omnichannel strategy through the use of digital infrastructure. Commission fees paid increased to ¥3,066 million year on year (from ¥2,797 million in the same period of the previous year), confirming continued digital-related investment.

The company is advancing store openings under the two banners of GRANDSTAGE and ABC-MART, both of which enjoy growing global recognition, to capture inbound demand. Promotional efforts featuring well-known artists aim to raise brand awareness and strengthen customer traffic. In Q1 FY2027 (ending March 2027), increased inbound demand both in Japan and overseas contributed to performance.

Last updated: July 17, 2026