Happiness and D Co.,Ltd.
3174・Standard Market・Retail Trade
Business
Happiness & D Co., Ltd. traces its roots to a watch retailer founded in 1946, and operates select shops selling jewelry, watches, bags, and accessories, primarily through shopping centers (SCs) nationwide. As of the end of FY ending August 2025, the company operated 57 Happiness-brand stores on a standalone basis (60 stores group-wide) across seven regions nationwide. Its consolidated subsidiaries include AbHeri (3 directly operated stores), which designs and sells jewelry made in its own workshop, and No. (Number Dot), which is currently launching a new jewelry brand, as the company advances its shift toward an integrated manufacturing-and-retail model. Its main customers span a wide range of age groups seeking gifts for life milestones and anniversaries, with "Anniversary Concept Shop" as its core concept.
Business Model
In its core Happiness stores, the company sells imported brand products sourced in yen from trading companies and other suppliers alongside its own original brand (h&d). In recent years, it has shifted its product mix from high-priced brand items toward jewelry and bullion products with higher gross margins, achieving a gross profit margin of 40.6% (FY2025, ending August 2025). From the second half of FY2025 (ending August 2025), the company began handling vintage (reused) products, expanding to 33 stores by fiscal year-end. AbHeri pursues high added value through an integrated manufacturing-to-sales model spanning in-house workshop production, directly operated stores, and e-commerce.
Company Strengths
Operates 57 stores across 7 regions nationwide (60 stores including group companies), from Hokkaido to Okinawa. The company covers a wide range of trade areas by opening stores in large shopping centers with high customer-drawing power, primarily AEON Malls. Following the closure of unprofitable stores (17 stores in the previous fiscal year, 14 stores in the current fiscal year), the store network is being reorganized toward higher profitability.
In FY2025 (ended August 2025), jewelry sales were ¥3,261 million (up 4.0% year on year) and gross profit was ¥1,803 million (up 4.2% year on year), achieving the only year-on-year increase in both sales and profit. Boosted by rising gold prices, bullion products and private-brand jewelry performed well, and the shift in product mix improved the overall gross margin to 40.6%.
Starting in the second half of FY2025 (ended August 2025), the company began handling vintage (resale) items from imported brands, expanding to 33 stores (out of 57 total stores) by fiscal year-end in just half a year. By leveraging existing store infrastructure, the company achieved low-cost introduction of a new category, contributing to maintaining the gross margin of the bags and accessories segment.
ENVALITH's Perspective
Performance Trend
Revenue more than halved over five fiscal periods, from ¥18,312 million in FY2021 to ¥8,841 million in FY2025, and the decline continued in the cumulative nine months of Q3 FY2026 (ending August 2026), at ¥6,332 million (down 5.6% year on year). The main cause was a reduction in store count following the closure of 14 stores in the previous period (down from 71 stores to 57 stores year on year). On the other hand, operating loss narrowed from ¥247 million in the same period of the previous year to ¥114 million, and ordinary loss also improved from ¥270 million to ¥144 million. As an external factor, rising gold prices boosted sales of bullion products, improving the gross profit margin to 41.3% (up 0.7pt year on year). On an existing-store basis, both sales and gross profit increased year on year, indicating that the effects of structural reforms are beginning to materialize. However, accumulated losses (retained earnings of negative ¥689 million) and a high level of interest-bearing debt (including ¥2,859 million in long-term borrowings scheduled for repayment within one year) remain significant financial risks.
Growth Strategy
The company aims for early profitability through a shift in product mix toward jewelry, bullion, and vintage products, along with strengthening its financial base through the utilization of stock acquisition rights.
Bullion product sales have been strong, driven by rising gold prices. The company continues to strengthen sales enhancement measures at events, and has expanded its product lineup through the transfer of the pure gold jewelry business from RAIN Co., Ltd. In the jewelry category, cumulative sales for the third quarter increased 2.9% year-on-year, and gross profit increased 4.3%.
Vintage product sales, which gained momentum from the second half of the previous fiscal year, are now handled at nearly all stores, expanding sales results. The company is progressively expanding its branded goods purchasing business at each store, aiming to establish a revenue base through an in-house model covering both procurement and sales. Part of the funds raised through the 14th series of stock acquisition rights is planned to be allocated to procurement funds for vintage product inventory.
The AbHeri Osaka store, as the flagship store, is focusing on customer acquisition and sales enhancement. In response to declining inbound demand, sales measures have shifted toward domestic customers. No. is promoting brand awareness and sales channel expansion through events, including joint events held together with the three group companies. Funds raised through the 14th series of stock acquisition rights are also planned to be allocated to store relocation and development funds.
Following the completion of the exercise of the 13th series of stock acquisition rights, common stock and capital reserve each increased by ¥162 million, improving the equity ratio from 2.7% to 5.3%. The 14th series of stock acquisition rights (600,000 potential shares, estimated net proceeds of approximately ¥272 million) and the 2nd unsecured straight bonds (total amount of ¥150 million) were issued on June 25, 2026. The company continues to maintain a cooperative framework centered on its main bank, Chiba Bank, and continues to receive support for loan condition amendments.
Last updated: July 17, 2026