DCM Holdings Co., Ltd.
3050・Prime Market・Retail Trade
Home Center Business
Core business of the DCM Group. A home center business operating 918 stores nationwide.
| Period | Current | Previous | Change |
|---|---|---|---|
| External customer sales (cumulative Q1, FY2027 ending March 2027) | ¥135,990 million | ¥123,126 million | ↑ |
| Segment profit (cumulative Q1, FY2027 ending March 2027) | ¥11,607 million | ¥9,856 million | ↑ |
| External customer sales (full-year reference: FY2026 ending March 2026) | ¥476,272 million | — | — |
| Segment profit (full-year reference: FY2026 ending March 2026) | ¥31,530 million | — | — |
| Share of group operating revenue (Q1) | 89.4% | 88.8% | ↑ |
| Number of stores (end of Q1) | 918 stores | 918 stores | — |
| Goodwill amortization (cumulative Q1) | ¥652 million (included in adjustments) | ¥465 million | ↑ |
Business Details
Domestic home center business handled mainly by DCM Corporation. Operates six divisions: gardening, home improvement, home leisure, pets, housekeeping, home furnishing, and home electronics. The company has physical stores nationwide from Hokkaido to Kyushu, offering products and services centered on DIY. As of the end of the first quarter of FY2027 (ending March 2027), it operated 918 stores, accounting for approximately 89.4% of group operating revenue, making it the core segment.
Recent Overview
Boosted by tailwinds from the Middle East situation and heatwave demand, first-quarter sales rose to 110.3% year-on-year.
In the first quarter of FY2027 (ending March 2027) (March to May 2026), external customer sales in the Home Center Business were ¥135,990 million (110.3% year-on-year), and segment profit was ¥11,607 million (117.8% year-on-year). The main factors behind the sales increase were bulk-buying demand for paint-related products, paper-related products, wrap, and garbage bags due to the impact of the Middle East situation, strong sales of air conditioners, air-conditioning wear, and summer goods due to higher temperatures, and a substantial increase in air conditioner sales driven by the 2027 air conditioner issue. On the other hand, weak sales of rain gear due to the rebound from heavy rainfall in the previous year and a decline in rice sales were partly negative factors.
Key Products
Growth Drivers
- Capturing special demand arising from changes in the external environment, such as the Middle East situation and the 2027 air conditioner issue (paint, paper-related products, air conditioners, etc.)
- Expanding demand for summer goods (air conditioners, air-conditioning wear, gardening products) due to higher temperatures
- Improved gross margin through an increased sales composition ratio of DCM Brand (Private Brand Products)
- Expansion of the greater Tokyo metropolitan area renovation business and complementary construction capabilities through the consolidation of Home Tech Co., Ltd. as a subsidiary
- Promotion of customer, product, store, renovation, and DX strategies under the Fourth Medium-Term Management Plan (FY2026–FY2028)
- Revenue contribution from the focused sales of Express Co., Ltd.'s private brand products (MAXZEN)
Risks
- Rising procurement prices due to raw material price increases and yen depreciation, and increased logistics costs (naphtha shortages, crude oil price surges)
- Continued consumer restraint on spending and cost-saving orientation due to heightened awareness of household budget defense
- Temporary nature of special demand driven by external factors such as the Middle East situation (risk of a drop-off in bulk-buying demand)
- Intensifying sales competition across business formats (competition among EC, drugstores, and home centers)
- Risk of a rebound decline from special demand in the previous period (such as disaster-preparedness goods)
- Shrinking domestic market size and labor shortages due to the declining birthrate, aging population, and population decline
- Profit pressure from increased goodwill amortization (from ¥465 million in the same period of the previous year to ¥652 million in the current period)
Last updated: May 27, 2026