ENVALITH
株式会社ストリーム logo

Stream Co.,Ltd.

3071・Standard Market・Retail Trade

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株式会社ストリーム logo
Stream Co.,Ltd.3071

Business

Stream Co., Ltd. was established in 1999 and listed on the Tokyo Stock Exchange in 2007 (currently the Standard Market); it is a domestic e-commerce specialist. Centered on its core businesses ecCurrent, e-Best, and Tokka COM, the company also operates storefronts on external malls such as Yahoo! Shopping, Rakuten Ichiba, and Amazon Marketplace, primarily selling home appliances, personal computers, and peripheral equipment. A distinctive feature of its business structure is that product procurement is based on a franchise agreement with Yamada Denki (through August 2026, with automatic 3-year renewals thereafter). Consolidated subsidiary X-1 (Ex One) operates the Beauty & Healthcare business, handling cosmetics and health foods, while the company also engages in 3PL, real estate, and sales support businesses. Its main customers are domestic general consumers and wholesale destinations serving duty-free stores.

Business Model

Products such as home appliances and PCs are procured through a franchise agreement with Yamada Denki, and orders, inventory, and shipping are centrally managed using an in-house-developed low-cost operation system. Sales channels consist of both the company's own site and external malls, with customer acquisition driven by point-based promotional campaigns. The cost structure is being improved through in-house operation of the call center (targeting a cost reduction of 50% or less compared to the previous level) and direct employment of logistics staff, building up earnings through a high-volume, low-margin business model. Capital expenditure is concentrated mainly on core system software, with investment for FY2026 (ending January 2026) totaling ¥192 million.

Company Strengths

Through its in-house developed core system, the company centrally manages everything from procurement to sales, delivery, and after-sales service via its EC system. Of the ¥192 million in capital expenditure in FY2026 (ending January 2026), ¥173 million was allocated to the internet mail-order business, reflecting continued system enhancements. The inventory turnover ratio improved from 12.0 times in the prior period to 13.8 times in the current period.

In addition to storefronts on Yahoo! Shopping, Rakuten Ichiba, and Amazon Marketplace, the company newly opened the One's Mart Yahoo! Shopping store in October 2025. Point-based promotional measures proved effective, and in FY2026 (ending January 2026), net sales of the internet mail-order business reached ¥31,583 million (up 8.7% year on year), with the number of orders reaching 1,017 thousand.

Cash flow from operating activities in FY2026 (ending January 2026) was ¥914 million. The balance of cash and cash equivalents at period-end increased to ¥1,367 million (up ¥471 million year on year). The interest coverage ratio improved to 136.9 times (from 80.1 times in the prior period), and financial flexibility is also secured through a ¥600 million overdraft facility agreement.

ENVALITH's Perspective

Operating profit for Q1 cumulative of FY2027 (ending January 2027) reached ¥95 million, up 181.8% year-on-year (from ¥33 million in the same quarter of the previous year). Progress against the full-year forecast of ¥294 million stands at approximately 32%, a favorable start compared to typical years. However, trends from Q2 onward, when seasonal demand for air conditioners and other products picks up in earnest, will be key to achieving the full-year target. No revision has been made to earnings forecasts since the figures announced on March 13, 2026.

In the Beauty & Healthcare business (X1), Q1 cumulative sales came to ¥153 million (down 20.7% year-on-year), with operating loss widening to ¥20 million (compared to a loss of ¥12 million in the same quarter of the previous year). While the membership-based business fell short of plan, wholesale sales to duty-free stores remained solid, supported by the increase in inbound visitors to Japan (an external factor, with cumulative visitors from January to April 2026 exceeding 14 million). Cost reduction effects such as insourcing the call center have not been sufficient to offset the decline in sales, and the lack of a clear path to profitability improvement remains an ongoing concern.

In Q1 cumulative sales by category, home appliances declined 9.9% year-on-year (from ¥3,583 million to ¥3,226 million), while PCs (+12.7%) and peripherals/digital cameras (+24.1%) helped offset the overall decline. Home appliances remain the largest category, accounting for approximately 40% of total sales, and are susceptible to seasonal products such as air conditioners and market fluctuations. External factors such as U.S. trade policy, exchange rate fluctuations, and rising prices create uncertainty regarding their impact on personal consumption, requiring careful monitoring of demand trends in the second half.

Growth Strategy

Sustainable growth driven by three pillars: expanding the lineup of seasonal products such as air conditioners, capturing energy-saving demand, and reforming the cost structure

In anticipation of replacement demand arising from compliance with the FY2027 energy efficiency standards (the "2027 Issue"), the company has strengthened its procurement system with suppliers and significantly expanded its air conditioner product lineup. From April 2026, it is rolling out a coupon campaign offering discounts of up to ¥50,000 on its ec current original site to capture summer demand early.

As a pioneer among internet retailers, the company became a registered business for the Tokyo Zero Emission Points program, and continues to promote energy-efficient appliances offering discounts of up to ¥80,000 on the ec current original site, ec current Rakuten Ichiba store, and other channels. Sales of eligible appliances have remained solid, maintaining differentiation through use of the program.

In the Beauty & Healthcare business, the company brought call center and other operations in-house, generating cost reduction effects. In the Internet Retail business, SG&A expenses were also reduced year-on-year for the same quarter (from ¥1,260 million to ¥1,236 million). Improvement in inventory turnover ratio (from 12.2 to 13.3 turns per year) also contributed to enhanced inventory efficiency.

In April 2026, the company opened "Salon de Innap Aoyama Relaxation Space," a fully reservation-based directly-operated salon. It has also launched new products (UV50+ sunscreen and hydrogel eye sheets) and digital initiatives such as TikTok-related courses. Wholesale sales to duty-free stores targeting inbound foreign visitors are also being continuously strengthened.

Last updated: July 17, 2026