HARD OFF CORPORATION Co.,Ltd.
2674・Prime Market・Retail Trade
Business
HARD OFF CORPORATION CO., LTD. operates directly-managed reuse stores nationwide under six business formats including HARD OFF, OFF HOUSE, and HOBBY OFF, while also serving as the franchise headquarters for these six formats to support franchisee stores. Its consolidated subsidiaries include Eco Plus and Econos (domestic), ECO TOWN USA INC. (United States), and Taiwan HARD OFF Co., Ltd. (Taiwan). As of the end of FY2026 (ending March 2026), the company operates 545 directly-managed stores and 533 franchise stores, for a total of 1,078 stores. Its main customers are general consumers who sell and purchase used goods, and against a backdrop of rising prices driving expanded demand for reuse goods, the company has achieved 30 consecutive periods of revenue growth.
Business Model
In the reuse business, the company purchases used goods from consumers and sells them within the same store under a local production-for-local-consumption model, accounting for the majority of net sales of ¥39,277 million. The FC business, with its highly profitable structure of franchise fees (¥5 million per initial store), store opening guidance fees, and royalties of 2-3% of sales, achieved segment profit of ¥1,311 million (profit margin of approximately 68%) against net sales of ¥1,932 million.
Company Strengths
Consolidated net sales for FY2026 (ending March 2026) reached ¥39,277 million (up 17.1% year on year), with operating profit of ¥3,387 million and net profit attributable to owners of the parent of ¥2,519 million, both renewing record highs. Net sales increased by approximately 60% from FY2022 to FY2026, and this long-term growth track record underpins the company's sustained competitiveness.
As of the end of FY2026 (ending March 2026), the company operated 1,054 stores across all 47 prefectures in Japan, plus 24 stores in the United States, Taiwan, Cambodia, and Thailand. Its store-opening model, which combines directly operated stores and franchise stores, allows the store network to expand without excessively consuming shareholders' equity. The equity ratio remains at a high level of 63.9%, indicating strong financial soundness.
The franchise (FC) business is a highly profitable segment, with segment sales of ¥1,932 million and segment profit of ¥1,311 million, representing a profit margin of approximately 68%. Fee income from franchise fees and royalties exceeds income from product supply, making this segment function as a stable source of earnings that is less affected by fluctuations in the performance of directly operated stores.
ENVALITH's Perspective
Performance Trend
Revenue increased approximately 60% over four fiscal years, from ¥24,507 million in FY2022 to ¥39,277 million in FY2026, with the consolidation of Econos as a subsidiary (bringing 69 stores into consolidated results) contributing significantly to the 17.1% increase in FY2026. Meanwhile, operating profit rose from ¥1,531 million in FY2022 to ¥3,387 million in FY2026, but growth in operating profit in FY2026 was limited to 5.3% due to increased costs from new store openings, personnel expenses, and depreciation, widening the gap with revenue growth. In terms of the external environment, expanding reuse demand and rising inbound tourism driven by price inflation have provided tailwinds, while rising raw material prices and geopolitical risks have created uncertainty about the outlook.
Growth Strategy
A four-pronged strategy combining physical stores, digital, and overseas expansion aimed at achieving the FY2030 target of 1,300 stores
The company is actively opening stores in underserved areas of regional cities while maintaining its standard of "one store per 100,000-person trade area." In FY2026 (ending March 2026), it plans to open 30 new directly-operated stores and 27 new franchise (FC) stores, and in FY2027 (ending March 2027) it plans a net increase of 36 directly-operated stores.
By selling purchased goods at the same store where they were bought (a local production-for-local-consumption model), the company achieves a different product lineup at each store. This approach fosters distinctive stores despite being a chain, enhancing customers' motivation to visit.
The company leverages the "Hard Off Official App," the "Offer Kaitori App" (purchase-offer app; both apps have store ratings of 4.5 or higher), and the official e-commerce site "Off Mall" to encourage store visits, strengthen purchasing, and expand e-commerce sales.
The company operates a total of 24 stores across the US (California and Hawaii), Taiwan, Cambodia, and Thailand. It is actively opening new stores centered on its existing areas, aiming for the global expansion of Japan's reuse culture.
In October 2025, the company made Economos a subsidiary through a tender offer (becoming a wholly owned subsidiary in November of the same year), consolidating 69 stores. This move promotes the expansion of the group's overall store network and management efficiency.
Last updated: July 19, 2026