ENVALITH
株式会社アンドエスティHD logo

and ST HD Co., Ltd.

2685・Prime Market・Retail Trade

Official website
株式会社アンドエスティHD logo
and ST HD Co., Ltd.2685

Business

AND ST HD Inc. (formerly Adastria) is an apparel company that operates numerous casual and lifestyle brands, including "Global Work," "Niko and...," and "LOWRYS FARM." In addition to a total of 1,554 apparel stores (1,415 domestic and 139 overseas), the company operates 76 restaurant locations under its food and beverage business (Zetton). Its core customer base ranges from younger generations to those in their 30s and 40s who favor casual fashion and lifestyle-oriented products. Membership in its proprietary e-commerce platform "and ST" has reached 19.7 million, as the company promotes an OMO (online-merges-with-offline) strategy combining physical and digital channels. The company is scheduled to change its name to AND ST Holdings in September 2025 and transition to a holding company structure. Net sales were ¥293,110 million (FY2025, ended February 2025).

Business Model

Main revenue comes from directly operated apparel and general merchandise store sales (domestic and overseas) and EC sales. The company's proprietary EC platform "and ST" is being opened up into a mall-type format, and platform revenue is also being cultivated by accepting store openings from external brands. The company aims to improve LTV by leveraging its membership base of 19.7 million through a point system and staff coordination proposals (STAFF BOARD). The restaurant business (Zetton) has sales of approximately ¥14,535 million and continues to post losses, but is positioned as a complementary function for lifestyle proposals.

Company Strengths

Membership of the in-house EC platform "and ST" reached 19.7 million (up 2.2 million from the previous fiscal year-end) as of the end of FY2025 (ending February 2025). EC sales grew 5.7% year on year. Cross-promotions with physical stores and the platform's openness (allowing outside brands to sell on it) are expanding its value as a platform, forming the foundation for improving LTV.

The company holds multiple core brands including Global Work (sales of ¥52,660 million), Niko and... (¥35,902 million), and Studio Clip (¥22,883 million). Risk is diversified across brands, reducing dependence on any single brand. Growing brands such as Lacollet (+17.3%) and Lepsim (+12.5%) are also being nurtured.

The company operates 1,415 stores across all prefectures in Japan and 139 stores overseas. Operating cash flow remained strong at ¥21,373 million in FY2025 (ending February 2025). It funded capital expenditures of ¥9,695 million from internal resources while continuing to pay dividends of ¥3,917 million, confirming its financial stability.

ENVALITH's Perspective

Operating profit for Q1 FY2027 (ending February 2027) rose to ¥7,875 million (up 40.5% year-on-year), and ordinary profit increased to ¥8,047 million (up 48.4%), showing marked improvement in profitability. On the other hand, the recognition of ¥1,230 million in special meritorious service payments and ¥71 million in impairment losses swelled total extraordinary losses to ¥1,301 million, causing net profit attributable to owners of the parent to decline to ¥3,908 million (down 10.6% year-on-year). The structural disconnect whereby improvements at the operating and ordinary profit levels fail to flow through to net profit is likely to draw investor attention.

The full-year consolidated earnings forecast (net sales of ¥314,000 million, operating profit of ¥17,200 million) remains unchanged. Q1 net sales of ¥80,318 million represent 25.6% of the full-year forecast, and Q1 operating profit of ¥7,875 million represents 45.8%, indicating favorable progress even accounting for seasonality. That said, uncertainties remain for the second half, including intensifying consumer thrift amid yen depreciation and price increases, as well as structural changes in overseas operations (overall overseas sales down 12.6% due to the impact of the U.S. withdrawal).

The expansion of gross merchandise value through the mall-style open platform strategy for "and ST" and the acquisition of external merchant storefronts are central to the medium-term management plan, but the scale and timing of the resulting profit contribution cannot currently be quantitatively confirmed. While accelerated investment in Southeast Asia (Thailand up 45.9%, Philippines up 3.3%) presents substantial growth potential, inherent risks in overseas expansion remain, as illustrated by the withdrawal from the U.S. business (July 2025). Whether the strong performance in Greater China (Hong Kong up 13.2%, Taiwan up 27.0%) will continue also warrants close attention.

Growth Strategy

Evolving into a "Play fashion! platformer" across the three axes of platform, global, and brand retail

Promoting the opening up of the in-house e-commerce site "and ST" to external companies (mall-type business). The number of brands handled and gross merchandise value continue to grow. Leveraging a base of 22.2 million and ST members (up 500 thousand from the previous fiscal year-end) and 8.1 million active users, the company aims to expand both IDs and LTV while improving profitability through its B2B production business.

Accelerating investment in Southeast Asia (Thailand, the Philippines), where population and economic growth are expected to be high, promoting physical store openings and expansion into new areas. In Greater China, performance remains strong with Hong Kong up 13.2% and Taiwan up 27.0%. The U.S. business withdrawal was completed in July 2025, allowing management resources to be concentrated on growth regions.

Promoting a multi-company system in which each group company autonomously formulates strategy and manages operations. At core company Adastria, profitability is being improved through investment in focus brands, stronger urban store openings, and larger-format stores. Brand and category expansion continues through M&A, such as the consolidation of Karrimor International (consolidated in April 2025).

Last updated: July 17, 2026