JOYFUL HONDA CO.,LTD.

Business Details

Operates large-format retail stores and specialty retail stores centered on Ibaraki, Saitama, Chiba, Tokyo, Tochigi, and Gunma prefectures. Serves a broad range of customers, from general consumers to professional customers, across two business axes: the "Home" segment (building materials/professional supplies, interior/living, garden/farm, and home renovation) and the "Living" segment (daily necessities/household goods, and pet/leisure). In September 2025, the company made Honda Co., Ltd. a subsidiary, and from the H1 FY2026 (ending June 2026) period onward has transitioned to consolidated accounting. The company is expanding group-wide revenue scale by incorporating Honda's delivery capabilities and corporate customer base.

Recent Overview

9-month cumulative results showed revenue of ¥95,937 million and operating income of ¥7,401 million; the basic agreement for business integration with Arcland's is the most significant subsequent event

Consolidated results for the 9-month cumulative period of FY2026 ending June 2026 (June 21, 2025 to March 20, 2026) were revenue of ¥95,937 million, operating income of ¥7,401 million, ordinary income of ¥8,303 million, and net income attributable to owners of parent of ¥7,703 million. Extraordinary income included a gain on negative goodwill of ¥1,940 million (associated with making Honda Co., Ltd. a subsidiary). There is no change to the full-year earnings forecast (revenue of ¥131,000 million, operating income of ¥8,800 million). As a subsequent event, on April 14, 2026, the company entered into a basic agreement for business integration with Arcland's Co., Ltd. via joint share transfer. The establishment and listing of a joint holding company is planned for March 1, 2027, with a share transfer ratio of 1.15 shares of the holding company for each share of Joyful Honda.

Key Products

Growth Drivers

• Business integration with Arcland's Co., Ltd. via joint share transfer (planned for March 2027): realization of a "specialty-store-cluster home center concept" through the integration of merchandise procurement, customer base, and store development know-how
• Synergy effects in home center, home renovation, and lumber/housing businesses through the consolidation of Honda Co., Ltd. as a subsidiary (acquisition of delivery capabilities and corporate customer base)
• Acceleration of specialty store expansion strategy (new format development including 7 Hondaya stores, 2 Joyful Honda Building Materials Center stores, and renewal into Pet's CLOVER)
• Driving demand for professional-use construction materials and products amid diversifying needs for materials procurement bases due to rising construction costs and shortage of skilled tradespeople
• Enhancement of corporate value through ESG management promotion (adoption of the locally-produced, locally-consumed PPA "Gunma Model" and achievement of a "B" score in CDP climate change assessment), and cost reduction through use of renewable energy
• Stable operating revenue base from real estate rental income (¥4,857 million for the 9-month cumulative period)

Risks

• Rising procurement costs due to persistently high raw material prices and logistics costs, along with increases in selling, general and administrative expenses (labor costs, utilities, repair costs)
• Continued price increases for daily necessities strengthening consumer thrift sentiment and prolonging a challenging retail operating environment
• Economic downside risk and rising crude oil prices stemming from geopolitical risks including US economic policy, China's economic slowdown, and worsening Middle East conditions
• Declining foot traffic at existing stores due to changes in the customer base within trade areas amid e-commerce market expansion and population decline
• Execution risks related to the business integration with Arcland's, including obtaining approvals from relevant authorities such as the Japan Fair Trade Commission, PMI (post-merger integration), and shareholder meeting approval
• Execution risk related to integration and synergy realization with Honda Co., Ltd. (PMI)
• Reduced demand for gardening and outdoor-related products due to extreme heat and climate change (bifurcation into two seasons)
• Risk of weak performance in the lumber and construction materials category due to sluggish new housing starts (driven by rising construction costs and shortage of skilled tradespeople)