DCM Holdings Co., Ltd.
3050・Prime Market・Retail Trade
Business
DCM Holdings is a holding company centered on the home center business. Its subsidiary DCM Corporation operates 843 stores nationwide (as of the end of FY2025 (ending March 2025)... wait, need to check fiscal period), offering a wide range of products including gardening, DIY, daily consumables, and home appliances. In 2021, five companies were integrated to establish DCM Corporation, and in January 2024, Keiyo became a wholly owned subsidiary, followed by a merger in September of the same year, expanding the group's scale. The company also holds the EC-specialist Xplice Corporation (net sales of ¥65,789 million) under its umbrella, promoting the integration of physical stores and online channels. Under its 2030 vision of becoming a "comprehensive lifestyle-enhancement company," the group is working on product and service development centered on DIY.
Business Model
The primary revenue source is merchandise sales at Home Center stores (Home Center Business net sales of ¥472,234 million in FY2025 (ending March 2025)). The company pursues a strategy of improving gross margin by increasing the sales composition ratio of DCM Brand (Private Brand Products). It focuses on selling the MAXZEN brand of its EC subsidiary Express Co., Ltd. across group stores, and is also promoting omni-channel development through BOPIS (Buy Online Pick-up In Store). Capital expenditures are basically funded within operating cash flow, while M&A funds are raised through long-term borrowings and corporate bonds.
Company Strengths
Following the 2021 integration of five companies, the 2022 unification of store names, and the 2024 full subsidiarization and merger with Keiyo, the company built a 843-store network. The Home Center segment holds ¥591,316 million in assets and benefits from scale advantages through nationwide purchasing negotiation power and logistics efficiency.
The company has deepened private-brand (PB) product development centered on DIY, gardening, pet supplies, and SDGs-related products, successfully raising the sales composition ratio in FY2025 (ending February 2025). Even amid rising raw material prices and yen depreciation, gross profit expanded to 114.0% of the previous period's level through enhanced sales promotion and merchandise mix review.
Xprice Corporation recorded sales of ¥65,789 million and operating profit of ¥839 million. The PB brand MAXZEN has been expanded into group stores, and the BOPIS strategy integrates physical stores with online channels. Since becoming a wholly owned subsidiary in April 2022, sales channel expansion within the group has progressed.
ENVALITH's Perspective
Performance Trend
For Q1 FY2027 (ending February 2027) (March–May 2026), operating revenue was ¥151,943 million (+9.8% YoY), operating profit was ¥11,373 million (+17.4% YoY), ordinary profit was ¥10,933 million (+19.4% YoY), and quarterly net income attributable to owners of the parent was ¥6,558 million (+11.5% YoY), representing increased revenue and profit across all metrics. External factors that boosted performance included temporary consumer stockpiling demand (paper products, paint, garbage bags, etc.) driven by Middle East tensions, strong sales of summer goods due to elevated temperatures, and a surge in air conditioner demand related to the "2027 air conditioner problem." Over the past five fiscal periods, net sales have followed an expanding trend, moving from ¥437,722 million to ¥469,782 million to ¥481,310 million to ¥536,132 million to ¥533,107 million, while operating profit has fluctuated significantly, moving from ¥30,649 million to ¥30,068 million to ¥28,685 million to ¥33,230 million to ¥31,014 million, reflecting a structure that continues to depend on M&A effects and weather/external conditions. The full-year forecast remains unchanged at operating revenue of ¥577,300 million (+6.5% YoY) and operating profit of ¥31,200 million (+0.6% YoY).
Growth Strategy
Under the 4th Medium-Term Management Plan, five strategies are being advanced to transform the earnings structure through renovation, DX, and private brand initiatives.
Under the theme "Three years to accelerate the transformation into the DCM of choice," the company is advancing five strategies: customers, products, stores, renovation, and DX. In parallel, it is strengthening management with awareness of PBR, enhancing human capital management, and actively pursuing sustainability initiatives.
Home Tech Co., Ltd. was made a subsidiary with a deemed acquisition date of December 31, 2025, incorporating its Greater Tokyo area renovation business. Contribution to results began from Q1 of FY2027 (ending February 2027). Complementing construction capabilities enables an integrated service from home center sales through to renovation construction.
Through the development of environmentally conscious products, new rollouts of energy- and cost-saving products, and enhanced sales promotion, the company succeeded in raising the private brand sales composition ratio even amid the headwinds of yen depreciation and higher raw material costs. This remains a key driver for improving the gross profit margin going forward.
MAXZEN, the private brand of e-commerce-focused Explice Co., Ltd., is now also being sold with priority focus at home center stores. Capturing home appliance demand driven by the air conditioner 2027 issue as a tailwind, the segment recorded Q1 sales of ¥15,887 million and segment profit of ¥244 million. This deepens the integration of e-commerce and physical retail within the group.
DX strategy is positioned as one of the five strategies in the 4th Medium-Term Management Plan, advancing digital-physical integration initiatives such as BOPIS (Buy Online Pick-up In Store). The company is simultaneously pursuing efficiency in selling, general and administrative expenses and improved customer convenience.
Last updated: July 17, 2026