HIRAKI CO.,LTD.
3059・Standard Market・Retail Trade
Business
Hiraki Co., Ltd. started out in 1961 manufacturing shoe components, and today it develops footwear (mainly direct-import products) under its own planning and design, alongside apparel and daily sundries, operating across three segments: mail-order sales, store sales, and wholesale sales. Its consolidated subsidiary, Shanghai Hiraki Fuke Trading Co., Ltd., handles merchandise procurement in China, supporting the group's overall product supply. Its main customers are price-conscious general consumers, and it reaches a broad range of age groups through catalog and e-commerce mail-order sales as well as physical stores centered on the Keihanshin area (including 18 specialty shoe stores as of the end of March 2026). It listed on the Second Section of the Tokyo Stock Exchange (now the Standard Market) in 2006.
Business Model
The company has an integrated system from product planning to outsourced production and sales, achieving low-priced products mainly by utilizing contract manufacturers in China. The mail-order business secures a high gross profit margin through direct sales via catalogs and e-commerce, while the store sales business attracts customers through two formats: general discount stores and shoe specialty stores. The wholesale business complements the sales network through OEM supply to major retailers and mass merchandisers. The structure is such that increasing the proportion of original products is key to improving profitability.
Company Strengths
Starting from footwear parts manufacturing in 1961, the company has built an integrated system covering planning, development, overseas production outsourcing, and sales. It develops in-house original products with functional appeal, such as "SP-ON" (can be worn while standing), and sold approximately 190,000 pairs combined through mail order and stores in FY2026 (ending March 2026), demonstrating its accumulated product development capabilities.
Since opening its first specialty shoe store in 2016, the company has expanded to 18 stores in the Keihanshin area as of the end of March 2026. Five new stores were opened in FY2026 (ending March 2026) alone, and this continuous store opening track record functions as a regionally focused sales network. The store sales business generated revenue of ¥6,535 million, forming the group's largest segment.
The company operates three segments—mail order sales (¥5,220 million), store sales (¥6,535 million), and wholesale sales (¥141 million)—reducing dependence on any single sales channel through channel diversification. The role division across channels, with mail order providing high profit margins, stores driving customer traffic, and wholesale offering OEM supply, contributes to strengthening overall product sales capability.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥15,199 million in FY2022 and has declined for five consecutive fiscal years, falling to ¥11,895 million in FY2026 (down 8.2% year on year). Operating loss expanded sharply from ¥4 million in the prior period to ¥320 million. The mail-order sales business was the main driver, down 15.0% year on year to ¥5,220 million, while store sales business also declined slightly, down 1.4% year on year to ¥6,535 million. External headwinds included strengthened consumer thrift due to rising prices and weak sales of seasonal products caused by prolonged summer heat. Net loss was ¥426 million (narrowing from ¥771 million in the prior period), but this was due to a substantial reduction in impairment losses (from ¥607 million to ¥23 million), meaning operating-level profitability actually deteriorated. For the next period (FY2027, ending March 2027), the company forecasts revenue of ¥12,500 million and operating profit of ¥150 million, but this is contingent on recovery in the mail-order business.
Growth Strategy
Aiming for a turnaround to profitability through "thorough low-cost management" and "building a foundation for the future"
The company will shorten lead times through a restructuring of its development system and strengthen original products, while also increasing traffic to its e-commerce sites through enhanced advertising utilizing SNS and other channels. It will promote efficient use of advertising expenses by optimizing catalog composition and distribution methods based on data analysis.
Building on the track record of opening 5 new shoe specialty stores in FY2026 (ended March 2026), the company will promote standardization of the specialty store model and continued store openings. It aims to improve gross profit margin by expanding sales of original products across all stores. In parallel, it will also work to revitalize the various facilities at the Iwaoka Main Store and increase the frequency of events to create a lively atmosphere.
Under the next-term basic strategy of "thorough low-cost management," the company will promote fixed cost reduction and operational efficiency improvement to build a lean management structure. Building on its track record of reducing SG&A expenses by ¥248 million year-on-year in FY2026 (ended March 2026), it aims to further improve its cost structure.
In addition to increasing transactions with major business partners, the company will promote the development of new large-wholesale business partners with high gross profit margins and strengthen ODM sales. It aims to achieve a turnaround to profitability in the wholesale business, which contracted to sales of ¥141 million and a segment loss of ¥3 million in FY2026 (ended March 2026).
Last updated: July 19, 2026