PALEMO HOLDINGS CO.,LTD.
2778・Standard Market・Retail Trade
Business
Paremo Holdings Co., Ltd. is a pure holding company that, through its subsidiary Paremo Co., Ltd., operates specialty store chains for women's apparel and accessories in shopping centers nationwide. Its main customer base consists of women in their late teens to 40s, and it owns numerous apparel brands including Ludic Park, Re-J&SUPURE, NOEMIE, and suzutan, as well as accessory brands such as illusie300 and INCENSE. As of the end of FY2026 (ending February 2026), the company operates 244 stores nationwide and also runs its own e-commerce site, "Paremoba." Founded in 1984 and listed in 2004, the company's principal shareholder is currently Nishimatsuya Chain Co., Ltd.
Business Model
The majority of revenue is derived from direct sales of apparel and general merchandise at directly operated stores within shopping centers nationwide. The holding company leases store real estate and equipment to subsidiaries, with the operating subsidiary Palemo handling the retail business. Merchandise is procured through a buying model that includes overseas sourcing, with logistics subsidiary Bicks handling delivery services on behalf of the group. The company also conducts online sales through its own e-commerce site "Palemoba," pursuing OMO initiatives to drive mutual customer traffic between online and physical stores. It also operates some Azul by moussy stores under a franchise agreement with Baroque Japan Limited.
Company Strengths
The company achieved store openings in all 47 prefectures nationwide in 2004, and as of the end of FY2026 (ending February 2026) operates 244 stores from Hokkaido to Okinawa. It maintains a nationwide shopping center network centered on 85 stores in the Kanto region and 46 stores in the Tokai region, ensuring sales stability through regional diversification.
Targeting women from their late teens to their 40s, the company owns a diverse range of brands including NOEMIE, an EC-originated brand for Generation Z, Re-J & SUPURE specializing in larger sizes, the natural-style Hare no hi, and the low-priced accessories brand illusie300. This has built a customer base that does not depend on a single target segment.
In FY2026 (ending February 2026), the company closed 36 stores (against 3 new openings), intensively streamlining unprofitable stores. After recording an operating loss of ¥710 million in FY2022 (ending February 2022), the company has maintained operating profitability since FY2023 (ending February 2023), with optimization of the store portfolio contributing to improved earnings.
ENVALITH's Perspective
Performance Trend
Revenue contracted for five consecutive fiscal periods, from ¥18,257 million in FY2021 to ¥14,083 million in FY2026. In the cumulative first quarter of FY2027 (ending February 2027), revenue was ¥3,361 million (down 0.7% year on year), and while the contraction trend continued, the rate of decline narrowed significantly from the 11.0% decline recorded in the same period a year earlier. On the earnings front, cost reductions in selling, general and administrative expenses (down approximately ¥73 million year on year) proved effective, with operating profit of ¥30 million, ordinary profit of ¥24 million, and quarterly net profit of ¥11 million, marking a turnaround to profitability from losses recorded across the board in the same period a year earlier. Externally, price increases driven by yen depreciation, higher raw material costs, and rising labor costs are weighing on personal consumption, while improvements in the employment and income environment and a recovery in inbound demand are providing a modest tailwind. Existing-store sales at 101.2% of the prior-year level point to signs of improvement, but sustaining full-year profitability will depend on a recovery in the top line from the second quarter onward.
Growth Strategy
Rebuilding the growth model through establishing a two-pillar structure of apparel and general merchandise and investing in EC and OMO
Building a structure that nurtures apparel and general merchandise as equally weighted profit pillars, mutually offsetting seasonal and weather-related risks. In Q1 of FY2027 (ending February 2027), general merchandise (daily sundries, UV protection goods, etc.) drove spring/summer demand and contributed to existing-store customer counts exceeding the prior-year level.
Promoting a shift toward a profit structure that secures operating profitability even amid top-line contraction, through the continuous closure of unprofitable stores (in Q1 of FY2027 (ending February 2027): 3 new store openings and 4 store closures, ending with 226 stores) and reduction of SG&A expenses. In Q1, the company achieved a turnaround from a loss in the same period of the prior year to a profit.
Promoting online-offline merging (OMO) to expand customer touchpoints via EC and drive store traffic. The software-in-progress balance of ¥212,740 thousand (as of the end of Q1) reflects ongoing system investment. Expansion of Generation Z-oriented brands (NOEMIE, etc.) is also being pursued in parallel.
Growing sales in the general merchandise segment through promotional initiatives such as intellectual property (IP) collaboration campaigns and responses to new-life demand, achieving existing-store customer counts exceeding the prior-year level. In Q1 of FY2027 (ending February 2027), existing-store sales reached 101.2% year on year.
Last updated: July 17, 2026