HIRAKI CO.,LTD.

Business Details

This business sells self-planned and developed original products (mainly shoes and footwear, as well as apparel and daily goods) directly to individual consumers through catalogs and the internet (e-commerce). It is a core segment accounting for approximately 43.9% of overall group sales (FY2026, ending March 2026), but sales declined significantly due to weak performance in promotional products and sluggish sales of autumn/winter seasonal merchandise. The company is currently pursuing a shift in product strategy "from price to value."

Recent Overview

Mail order business deteriorated sharply, with sales down 15.0% and a fall into segment loss

For full-year FY2026 (ending March 2026), mail order business net sales were ¥5,220 million (down 15.0% year on year), and segment income fell into a loss of ¥(31) million (versus segment income of ¥204 million in the prior year). The main causes were weak promotional products, sluggish autumn/winter seasonal merchandise due to prolonged late-summer heat, and a year-on-year decline in order volume stemming from insufficient price and value messaging. Although SG&A expenses, mainly advertising costs, were reduced, this was not enough to offset the impact of the sales decline. A 20th-anniversary listing campaign and new initiatives (influencer collaborations, ambassador PR) achieved some success in acquiring new customers in their 30s, but did not lead to an overall recovery in orders.

Key Products

Growth Drivers

• Acquisition of new customers through development and launch of function-focused original products following "SP-ON" (building on the period's SP-ON sales of 120,000 pairs)
• Increased e-commerce site traffic and new customer order growth through enhanced digital advertising, including social media and influencer utilization
• Shortened lead times and strengthened original product lineup through review of the development structure
• Efficient use of advertising expenses and improved profitability through data-driven optimization of catalog composition and distribution methods
• Enhanced value of original products and restoration of customer trust through the "from price to value" product strategy shift

Risks

• Continued year-on-year decline in order volume, with risk of delayed sales recovery due to weak promotional products and insufficient value-messaging strength
• Risk related to shifting consumer preference toward lower-priced products amid heightened cost-consciousness, and uncertainty over acceptance of value-oriented products
• Risk of rising procurement costs and pricing policy disruption due to yen depreciation and higher raw material prices
• Risk of sales fluctuation due to climatic and seasonal factors, such as the impact of prolonged late-summer heat on autumn/winter seasonal merchandise
• Risk of losing existing customers due to delayed shift from catalog to e-commerce and intensifying competition with rival e-commerce platforms
• Risk that the weak performance of the mail order business could weigh on overall consolidated results (the segment's fall into loss was the main cause of the consolidated operating loss of ¥320 million in FY2026, ending March 2026)