ENVALITH
クロスプラス株式会社 logo

CROSS PLUS INC.

3320・Standard Market・Wholesale Trade

Official website
クロスプラス株式会社 logo
CROSS PLUS INC.3320

Business

CROSS PLUS INC. is a comprehensive apparel company founded in 1951, possessing top-class planning and production capabilities in the women's clothing industry, manufacturing 50 million units annually of highly sensitive, high-quality, and reasonably priced products. Its core Apparel Wholesale segment (net sales of ¥44,202 million) sells to specialty stores, mass retailers, and non-store retailers, with its largest customer being Shimamura (net sales of ¥17,893 million, 29.9% of composition). In Lifestyle Wholesale, the company is expanding its reach into drugstores, convenience stores, and other channels. The group comprises five companies, including Third Office (men's apparel) and IS Link (cosmetics), and has built a global supply chain leveraging China and ASEAN.

Business Model

Leveraging efficient production systems built through partnerships with leading factories in China and ASEAN, together with a logistics network encompassing overseas inspection and domestic in-house centers, the company supplies high-quality products in large volumes at low cost. The core revenue driver is Apparel Wholesale (net sales of ¥46,780 million), centered on three channels: specialty stores, mass merchandisers, and non-store retail. In Retail (Directly-Operated Stores & E-Commerce) (net sales of ¥12,656 million), e-commerce (net sales of ¥3,244 million, up 16.1% year on year) is positioned as the growth engine, with efforts to improve profit margins by raising the proportion of direct sales through the use of social media and live commerce.

Company Strengths

The company has the scale and planning capabilities to manufacture 50 million items annually, having built an efficient production system through partnerships with leading overseas factories in China and ASEAN. It has established a global supply chain linking overseas inspection with domestic in-house centers, enabling stable supply of highly sensitive, high-quality, and reasonably priced products.

In FY2026 (ending March 2026)... [Note: source states 2026年1月期]

Sales in the EC channel maintained high growth, reaching ¥3,244 million (up 16.1% year on year). The "for/c" bottoms and the functional brand "CROSS FUNCTION" grew significantly in EC sales. In Lifestyle Wholesale, the new brand "Yoki" is expanding steadily, among other growth brands the company is cultivating.

ENVALITH's Perspective

Operating profit for the first quarter of FY2027 (ending January 2027) fell sharply to ¥347 million, down from ¥804 million in the same period a year earlier. This represents progress of only 24.8% against the full-year operating profit forecast of ¥1,400 million. Compared with the progress rate for the same period last year (¥804 million ÷ ¥1,395 million = 57.6%), the ground that must be made up over the remaining three quarters is extremely large, warranting a cautious view on the likelihood of achieving the full-year forecast. Although the company has left its earnings forecast unchanged, this is a juncture at which the feasibility of a plan premised on a second-half-weighted earnings structure should be closely scrutinized.

The largest factor behind the 1Q revenue decline was the delayed recovery in sales to suburban specialty stores within Apparel Wholesale (¥11,248 million, down 7.9% year on year). As an external factor, the environment of price increases driven by continued yen depreciation and rising raw material costs has been dampening personal consumption. Meanwhile, sales to mass merchandisers were also nearly flat, down 0.2% year on year, making clear that stagnation extends across the entire mainstay wholesale channel. It will be necessary to confirm in coming quarters whether this trend is a temporary seasonal factor or a structural one reflecting changes in consumer purchasing behavior.

Gross profit for the first quarter came to ¥4,241 million (versus ¥4,478 million in the same period a year earlier), with gross profit margin declining to 27.4% (versus 28.0% a year earlier). The company attributes this mainly to a rise in cost of sales, with continued yen depreciation as an external factor pushing up procurement costs. In addition, selling, general and administrative expenses increased to ¥3,894 million (versus ¥3,674 million a year earlier), with personnel costs, logistics costs, and e-commerce sales commissions squeezing profit. Whether the effect of foreign exchange hedging (deferred hedge gains/losses improved by ¥197 million from the end of the previous fiscal year) will ease the cost burden from the second half onward is a key variable for achieving the full-year profit forecast.

Growth Strategy

Aiming for net sales of ¥68,000 million and operating profit of ¥2,000 million in FY2028 (ending January 2028) through the twin pillars of apparel and lifestyle businesses

Promoting the growth of the general merchandise shop "Join Park" and strengthening EC sales of "Cross Function." Leveraging SNS and video marketing, EC sales in Q1 of FY2027 (ending January 2027) continued to grow strongly at ¥817 million (up 15.3% year on year). Raising the proportion of higher-margin retail sales directly contributes to improving the profit structure.

In addition to expanding sales of seasonal merchandise under the in-house brand "Yoki," the company has expanded beauty-related products, including the launch of sales of the Korean nail brand "Dashing Diva." Lifestyle Wholesale in Q1 of FY2027 (ending January 2027) grew steadily to ¥1,022 million (up 14.8% year on year).

Occasion-wear products under the differentiated, function-focused brand "Cross Function" are performing well in EC. Expansion of the men's business broadens the customer base and aims to improve the profitability of Apparel Wholesale. It also plays a role in compensating for the delayed recovery in sales to suburban specialty stores.

Last updated: July 17, 2026