Komehyo Holdings Co.,Ltd.

Business Details

This segment covers purchasing, sourcing, sales (stores and EC), brokerage, and auction operations for new and used jewelry, precious metals, watches, bags, apparel, kimono, cameras, musical instruments, and other items. Domestically, it is centered on Komehyo Co., Ltd., K-BRAND OFF, and R&K Enterprise Co., Ltd. Overseas, it operates in Thailand, Malaysia, Singapore, Hong Kong, Taiwan, and China. It has built a multi-channel reuse business model based on purchasing from individuals (purchase centers, event-based purchasing, and home delivery purchasing) as the foundation of sourcing, while also utilizing corporate sourcing, corporate sales, and auctions.

Recent Overview

Revenue up 40.5% and operating income up 52.7%, a substantial increase in both revenue and profit, driven by soaring gold prices and store network expansion.

In FY2026 (ending March 2026), the Brand & Fashion Business achieved revenue of ¥215,146 million (up 40.5% year on year) and operating income of ¥8,732 million (up 52.7% year on year). In addition to the impact of historically soaring gold prices, purchase and sales demand progressed extremely favorably against a backdrop of heightened attention to asset value and rising domestic prices due to yen depreciation. The company actively opened new stores both domestically and overseas, achieving a record-high amount of purchases from individuals. On the other hand, changes in product mix (an increase in the proportion of corporate sales of gold bullion and similar items) caused the gross profit margin to decline year on year, but the profit accumulation from increased revenue exceeded the increase in SG&A expenses, causing the operating margin to turn to improvement. In addition, in December 2025, the company acquired shares of iShopShops, Inc. (USA), strengthening its digital and global expansion.

Key Products

Growth Drivers

• Active new store openings of purchase-specialty stores (domestically: Komehyo, K-BRAND OFF, R&K Enterprise, etc.), expanding sourcing through individual purchases and achieving a record-high amount of purchases from individuals
• Rising demand for purchasing and sales against the backdrop of historically soaring gold prices, heightened attention to asset value, and rising domestic prices due to yen depreciation
• Business scale expansion through M&A (acquisition of live commerce and North American customer base through the acquisition of iShopShops, Inc.)
• Expansion of tax-free sales to inbound foreign visitors against the backdrop of continued inbound demand
• Expansion of the overseas store network centered on Asia (in FY2026 (ending March 2026): a total of 13 new stores opened across Thailand, Malaysia, Singapore, Hong Kong, China, and Taiwan)
• Improved inventory turnover and accelerated cash conversion through agile use of B2B auctions and corporate sales

Risks

• Risk of declining gross profit margin due to fluctuations in product market prices (high-end watches, brand bags, gold bullion, etc.) (gross profit margin declined year on year in FY2026 (ending March 2026) as well due to a rising proportion of corporate sales)
• Impact on overseas business revenue and product market prices from foreign exchange fluctuations (yen appreciation)
• Intensifying competition in purchasing and sales (increased M&A activity and new market entrants) leading to rising sourcing costs and margin pressure
• Risk of impairment of goodwill arising from M&A (balance of ¥2,402 million as of the end of FY2026 (ending March 2026)) (an impairment loss of ¥310 million was recorded in the current period)
• Downward pressure on operating margin from increased SG&A expenses (¥37,863 million) associated with active store openings and human capital investment
• Risk of business integration issues at newly acquired M&A targets, including the occurrence of an equity method investment loss (¥179 million) associated with the acquisition of iShopShops, Inc.