ASAHI CO.,LTD.

Business Details

A single segment covering the Bicycle Business, providing bicycle and Parts & Accessories Sales as well as ancillary services such as Repair & Maintenance Service. The company operates 539 directly-managed stores and 18 franchise (FC) stores nationwide, and also runs EC sales through its official online store, Yahoo! store, and Rakuten Ichiba store. It features a product lineup combining its own private-brand (SPA) products with third-party brands, and also operates a Reuse Business and a wholesale business. The company positions its approach to Japan's approximately 60 million domestically owned bicycles as a growth opportunity.

Recent Overview

Net sales rose 2.5% year on year, but operating profit fell 5.3% due to increased expenses

For the first quarter of FY2027 (ending February 2027) (February 21, 2026 to May 20, 2026), net sales increased to ¥27,786 million (up 2.5% year on year), securing revenue growth. However, as selling, general and administrative expenses expanded to ¥9,499 million (up 5.1% year on year), operating profit declined to ¥3,097 million (down 5.3%) and quarterly net income declined to ¥2,140 million (down 8.4%). The occurrence of a foreign exchange loss of ¥33,735 thousand was also a factor depressing ordinary profit. Store openings and closures resulted in one new store opening and one store closing (contract expiration) in the Kanto region, for a net change of zero, maintaining the period-end store count at 557 stores (539 directly-managed, 18 FC). There has been no change to the full-year earnings forecast (net sales of ¥86,278 million, operating profit of ¥4,300 million), and the earnings structure weighted toward the second half is expected to continue.

Key Products

Growth Drivers

• Expanding demand for repair and maintenance services (a further strengthening of the tendency to "use one bicycle for longer" amid rising prices)
• Expansion of the Reuse Business to reduce dependence on new bicycle sales and build a circular business model
• Deepening of the OMO platform and strengthened CRM (enhancing customer relationships through the official app and approaching Japan's approximately 60 million domestically owned bicycles)
• Expansion into adjacent business areas and strengthened collaboration with strategic partners to expand trading areas under the new medium-term plan "VISION2028" (FY2027 (ending February 2027) to FY2029 (ending February 2029))
• Capturing second-half demand to achieve the full-year forecast of increased revenue and profit (net sales of ¥86,278 million, up 6.0% year on year; operating profit of ¥4,300 million, up 9.2% year on year)

Risks

• Continued sluggishness in new bicycle sales due to a lengthening replacement cycle accompanying the shift toward high-function products such as electrically power-assisted bicycles
• Continued consumer thrift orientation and spending restraint due to prolonged price increases
• Downward pressure on profit margins from increased selling, general and administrative expenses (up 5.1% year on year in Q1)
• Foreign exchange risk (a foreign exchange loss of ¥33,735 thousand was recorded in Q1) and the impact on procurement costs from uncertainty in the international economic environment
• Risk of impairment losses (¥1,455 thousand recorded in Q1) and recording of extraordinary losses such as losses on disposal of fixed assets