GFOOT CO.,LTD.

Business Details

The Group's core business is the sale of footwear and imported general merchandise, operating nationwide primarily within AEON Group shopping centers under formats such as ASBee, ASBee Kids, and Green Box. As of the end of FY2026 (ending March 2026)... note: fiscal year is February, the store count stood at 594 stores (586 on a standalone basis). Product mix consists of sports shoes (40.4% of sales), children's shoes (23.4%), women's shoes (16.2%), men's shoes (10.8%), and other (9.2%). The company has been pursuing a four-year business turnaround plan since the fiscal year ended February 2023 to rebuild the management foundation damaged by the COVID-19 pandemic, but in the fiscal year ended February 2026 it fell short of the plan and moved into delisting procedures.

Recent Overview

Losses widened sharply and the company fell into negative net worth, with delisting scheduled for June 2026.

In the fiscal year ended February 2026, net sales were ¥56,906 million (down 5.1% year on year), and the operating loss widened significantly to △¥2,388 million (from △¥805 million in the prior year). Existing-store sales remained at 98% of the prior year amid rising consumer frugality and price consciousness driven by inflation, while intensified promotional activities caused gross profit margin to decline by 1.3 points. Operating cash flow deteriorated sharply to △¥6,723 million due to increases in inventories and receivables, and the company secured funds through a net increase of ¥5,600 million in short-term borrowings. Net assets fell into negative territory at △¥2,359 million. On April 8, 2026, the company announced a share consolidation and abolition of the unit share system, with delisting scheduled for June 23, 2026. The company has determined that there is no material uncertainty regarding its ability to continue as a going concern, premised on continued management support from AEON Co., Ltd.

Key Products

Growth Drivers

• 109% year-on-year growth in PB sales driven by enhanced development of functional products under the ATHREAM and heal me private brands
• 109% year-on-year sales growth in the e-commerce business driven by strengthened kids offerings and large-scale promotions
• Expansion of the ASBee app membership base to a cumulative 2.37 million members, building a digital customer base
• Strengthened customer traction through development of new formats such as ASBee Kids Grande
• Continued organizational and cost structure reform through operational digitalization (consolidation of in-store smartphone use)
• Establishment of a unified group management structure by AEON Co., Ltd., with management support provided as necessary

Risks

• Sluggish existing-store sales (98% year on year) amid rising consumer frugality and price consciousness against a backdrop of inflation
• Decline in gross profit margin (down 1.3 points year on year to 42.8%) due to intensified promotional activities
• Net assets fell into negative territory at △¥2,359 million, with the equity ratio deteriorating sharply to △7.3%, indicating a significant weakening of the financial base
• Operating cash flow deteriorated sharply to △¥6,723 million, a major cash outflow, with cash balances declining to ¥672 million
• Delisting scheduled for June 23, 2026, with no disclosure of earnings or dividend forecasts for FY2027 (ending March 2027)
• Weak sports shoe sales (91.4% year on year) in the flagship category (40.4% of sales), with uncertain prospects for demand recovery
• Short-term borrowings rose sharply to ¥17,900 million (up ¥5,600 million year on year), increasing interest-bearing debt and reliance on financial institutions
• Inventories increased to ¥23,867 million (up ¥2,020 million year on year), expanding year-end stock levels and inventory risk