HONEYS HOLDINGS CO., LTD.
2792・Prime Market・Retail Trade
Business
Honeys Holdings Co., Ltd. is a women's apparel SPA (specialty store retailer of private label apparel) company founded in 1978. Its consolidated subsidiary, Honeys Co., Ltd., operates 872 stores (as of the end of FY2025, ending May 2025) at suburban large shopping centers and station buildings across all 47 prefectures in Japan, selling women's apparel and fashion accessories to a broad range of female customers by age group. Most products are designed in-house and manufactured at the company's own factory in Myanmar (Honeys Garment Industry Limited) and at overseas contract manufacturing plants. Guided by its management philosophy of "high sensitivity, high quality, reasonable pricing," the company has built a unique SPA model that integrates planning, manufacturing, and sales. It transitioned to the Prime Market of the Tokyo Stock Exchange in April 2022.
Business Model
The SPA (Speciality store retailer of Private label Apparel) model, which vertically integrates product planning, manufacturing, and sales, forms the core of profitability. The company controls procurement costs through a high ASEAN production ratio centered on its own factory in Myanmar, while selling through two channels: 872 directly-operated stores nationwide and its own e-commerce site. Against net sales of ¥57,701 million, the gross profit margin stands at 59.2%. Shareholder returns are implemented with a target payout ratio of 35% and DOE of around 3%, while capital expenditure is funded mainly by operating cash flow (¥4,918 million in FY2025 (ended May 2025)), maintaining a debt-free management structure.
Company Strengths
Operates 872 stores (as of the end of FY2025 (ending May 2025)) across all 47 prefectures nationwide, from Hokkaido to Okinawa. The company primarily opens in-shop format stores within suburban large-scale shopping centers and station buildings, forming a broad customer base by leveraging an average sales floor area of 200,203 m² (FY2025 (ending May 2025) average). The store portfolio is continuously optimized through scrap-and-build.
Honeys Garment Industry Limited, established in 2012, manufactures women's apparel in Myanmar and provides stable supply to the group. By maintaining a high ASEAN production ratio, the company secures cost competitiveness in procurement. The Myanmar segment's operating loss for FY2025 (ending May 2025) narrowed significantly to ¥54 million from ¥368 million in the prior period, indicating a transition from the investment phase to a stable operation phase.
As of the end of FY2025 (ending May 2025), the equity ratio stood at 84.4%, with cash and cash equivalents of ¥13,355 million. Against total assets of ¥52,997 million, liabilities amounted to only ¥8,290 million, maintaining a virtually debt-free management structure. Operating cash flow was robust at ¥4,918 million (up 130.5% year on year), giving the company the financial strength to fund growth investments and shareholder returns from its own resources.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending May 2026), net sales were ¥56,182 million (down 2.6% year on year), operating profit was ¥4,619 million (down 21.8%), and net income attributable to owners of parent was ¥2,845 million (down 23.8%). Net sales rose for four consecutive fiscal periods, from ¥47,696 million in FY2022 (ended May 2022) to ¥57,701 million in FY2025 (ended May 2025), before turning to decline for the first time in two periods. Operating profit peaked at ¥7,671 million in FY2023 (ended May 2023) and has declined for three consecutive fiscal periods, down 39.8% from that peak. External factors included sluggish proper (full-price) sales of autumn merchandise due to the prolonged summer that continued until mid-October, higher procurement costs from continued yen depreciation, and sustained consumer frugality. Spring inventory adjustments in the second half also weighed on sales. For FY2027 (ending May 2027), the company forecasts net sales of ¥56,500 million (up 0.6% year on year) and operating profit of ¥4,000 million (down 13.4%), continuing the pattern of higher sales but lower profit.
Growth Strategy
Aiming for a recovery in profitability by FY2028 (ending May 2028) through strengthening e-commerce and OMO, pursuing appropriate pricing, and leveraging ASEAN production
The company is pursuing new member acquisition and deepening engagement with existing members through improvements to the usability of its proprietary e-commerce site, enhancement of in-store pickup services, and use of web advertising and SNS. It aims to reduce lost sales opportunities through mutual customer referrals between e-commerce and physical stores, and to achieve continued expansion of e-commerce sales. Growth in the e-commerce business was confirmed in FY2026 (ending May 2026).
The effect of revising list prices to more reasonable price points on improving the number of items purchased per customer has been confirmed. On the other hand, an increase in the proportion of sale sales is pressuring the gross profit margin, making timely and appropriate inventory management and the pursuit of added value key challenges for restoring the gross margin. The company will continue flexible merchandise allocation tailored to location environments and store characteristics.
The company maintains a high ASEAN production ratio by effectively utilizing its Myanmar subsidiary, continuing stable product supply. As a response to risks from yen depreciation and rising logistics costs, the medium-term management plan explicitly states a policy of maintaining the foundation of "high sensitivity, high quality, and reasonable pricing" through maximum utilization of its production system.
Based on the FY2026 (ending May 2026) results and the outlook for the next fiscal year, the company has revised its medium-term management plan, with FY2028 (ending May 2028) as the final year. Revisions to the previous targets (net sales of ¥63,000 million and operating profit of ¥7,000 million) were announced separately on July 7, 2026. The feasibility of the plan and the level of the targets are points of investor attention.
Last updated: July 17, 2026