KAITORI OKOKU CO., LTD.

Business Details

A comprehensive reuse retail company operating multiple store formats including Kaitori Okoku, Kogu Kaitori Okoku, My Shu Sagirl, and Ryohin Kaikan. The company handles a wide range of items such as apparel, tools, hobby goods, branded items, and trading cards, with men and women in their 20s to 50s as its main customer base. Under the store concept of "Excitement, Thrills, Great Discoveries!", the company is characterized by store operations that delegate authority to staff with specialized knowledge. It operates numerous directly-managed and franchise stores centered on the Tokai, Kansai, and Hokuriku areas. In the first quarter of FY2027 (ending February 2027) (March to May 2026), the company achieved substantial growth in both revenue and profit, with net sales of ¥2,441 million (up 11.2% year-on-year) and operating profit of ¥221 million (up 37.5% year-on-year).

Recent Overview

In Q1 of FY2027 (ending February 2027), net sales rose 11.2% and operating profit rose 37.5%, marking a strong start to the fiscal year with substantial profit growth.

In the first quarter of FY2027 (ending February 2027) (March to May 2026), the specialization strategy proved successful, with all three main product categories—fashion, hobby, and tools—growing in tandem. The company achieved net sales of ¥2,441 million (up 11.2% year-on-year), operating profit of ¥221 million (up 37.5% year-on-year), ordinary profit of ¥227 million (up 41.8% year-on-year), and quarterly net profit of ¥148 million (up 40.5% year-on-year). By item category, trading cards showed high growth at ¥76 million (up 58.2% year-on-year). In March 2026, the company opened the third KOV store (Osu, Nagoya), and in April 2026, renovated the Ryohin Kaikan Takarazuka Inter store into a co-located store combining used clothing and tools/fishing gear formats. There has been no change to the earnings forecast, with the full-year forecast maintained at net sales of ¥10,012 million and operating profit of ¥600 million.

Key Products

Growth Drivers

• Acquisition of new customer segments and strengthening of existing store profitability through a specialization strategy (KOV, Kogu Kaitori Okoku, used clothing specialty formats, etc.)
• Aggressive multi-store expansion of the Kogu Kaitori Okoku format (directly-managed store openings progressing smoothly in FY2027 (ending February 2027) as well)
• Simultaneous revenue growth across the three main product categories of fashion, tools, and hobby items (Q1: fashion ¥936 million, tools ¥537 million, hobby ¥400 million)
• Rapid growth in trading cards (Q1: ¥76 million, up 58.2% year-on-year)
• Continued expansion of the reuse market driven by rising consumer cost-consciousness amid inflation and growing interest in the circular economy
• Strengthening of procurement capability through diverse sourcing channels (in-store purchases, home pickup purchases, corporate sourcing, overseas buying, and event-based purchases)
• Expansion of business foundation and synergy effects from co-locating with specialty formats following the acquisition of the Ryohin Kaikan business (August 2024)
• Groundwork for future overseas expansion through the KOV format

Risks

• Upward pressure on selling, general and administrative expenses due to rising labor costs, recruitment costs, and logistics costs (Q1 SG&A expenses of ¥1,105 million, up 5.1% year-on-year)
• Impairment risk associated with aggressive new store openings (an impairment loss of ¥4 million was recorded in the same period of the prior year)
• Declining trend in the equity ratio (61.9% in FY2024 (ending February 2024) → 58.6% in FY2025 (ending February 2025) → 57.1% in FY2026 (ending February 2026) → 55.1% in Q1 of FY2027 (ending February 2027))
• Increasing interest burden on borrowings amid rising interest rates (Q1 interest expense of ¥3 million; interest-bearing debt balance includes long-term borrowings of ¥1,304 million and current portion of long-term debt due within one year of ¥635 million)
• Impact on domestic consumption from a downturn in overseas economic conditions, including US policy trends, geopolitical risks, and stagnation in the Chinese economy
• Risk of fluctuations in trading card market prices (an item category highly susceptible to market conditions)
• Rising cost of securing personnel due to labor shortages and its impact on store operations