NAFCO Co., Ltd.

Nafco Co., Ltd. was founded in 1970 and is headquartered in Kitakyushu City, operating as a suburban home center chain. The company is built around three core pillars—"building materials, DIY, and gardening supplies," "household goods," and "furniture and home fashion items"—while also offering complementary categories such as car accessories, pet supplies, and kerosene. Centered on the Kyushu and Chugoku regions, the company has expanded its trading area to the Kansai, Chubu, and Kanto regions, operating 359 stores across 34 prefectures as of the end of March 2026. Its operations are centered on large-format stores with ample suburban parking space, targeting a wide customer base ranging from general consumers to professional businesses. The corporate group consists of the company and two non-consolidated subsidiaries, with net sales of ¥174,477 million for FY2026 (ending March 2026).

The company combines an extensive product lineup with competitive pricing at large-format suburban stores (ranging from approximately 300 tsubo to 3,000 tsubo), capturing sales from a broad customer base. As a profitability improvement measure, it is expanding the proportion of PB (private brand) products and increasing the number of imported product items and transaction volumes to improve markup rates. Reductions in logistics and delivery costs through the review of operations at logistics centers (6 locations nationwide) are also contributing to securing profits. Gross profit margin was 34.0% (FY2026, ending March 2026).

Revenue for FY2026 (ending March 2026) was ¥174,477 million (down 3.6% year on year), marking a fifth consecutive year of declining sales, though the pace of decline narrowed from the 5.8% decrease recorded in the prior period. Operating profit rose to ¥1,636 million (up 29.2% year on year), returning to growth for the first time in two periods, primarily due to reduced SG&A expenses achieved through cuts in logistics and delivery costs. An impairment loss of ¥926 million (versus ¥568 million in the prior period) was recorded as an extraordinary loss, but net income for the period still came in at ¥223 million (up 21.6% year on year). For FY2027 (ending March 2027), the company forecasts operating revenue of ¥180,770 million (up 3.1% year on year), operating profit of ¥2,930 million (up 79.1% year on year), and net income of ¥1,270 million (up 467.9% year on year), anticipating a shift onto a recovery trajectory for earnings. As external factors, sluggish personal consumption due to elevated prices and intensifying competition, including from other industries, continue to serve as headwinds.