FELISSIMOCORPORATION

Business Details

FELISSIMO operates a mail order business centered on "Felissimo Teikibin," a service that delivers apparel, fashion accessories, and lifestyle-related products to customers once a month. Products are sold to general consumers through catalogs and the internet, with order processing and shipping consolidated at the company's own order-receiving and logistics centers. In addition to the core subscription delivery business, the company is also cultivating new business areas such as the Business Produce Business and the Area Media Business. FY2027 (ending February 2027) is positioned as a critical execution year for achieving "normalization of sustained revenue and profit growth."

Recent Overview

Teikibin sales declined due to a decrease in existing customers, but new businesses grew strongly by 32%, turning ordinary income positive

In the first quarter of FY2027 (ending February 2027) (March to May 2026), although the number of new customers acquired in the Teikibin business exceeded the same period of the previous year, the cumulative number of customers declined due to reduced purchase frequency among existing customers, resulting in Teikibin sales of ¥6,089 million (down 5.0% year on year). Meanwhile, the new business areas grew strongly to ¥936 million (up 32.0% year on year), aided by the launch of operations for the Expo official online store, among other factors. Due to an increase in depreciation and amortization associated with the renewal of logistics facilities and procurement systems, SG&A expenses rose 2.1% year on year, widening the operating loss to ¥67 million. However, the company recorded non-operating income of ¥84 million, including foreign exchange gains of ¥51 million, resulting in ordinary income of ¥15 million and quarterly net income of ¥13 million, turning positive from a loss in the same period of the previous year. There has been no revision to the full-year earnings forecast (net sales of ¥30,265 million, operating income of ¥237 million).

Key Products

Growth Drivers

• Number of new customers acquired through "empathy-driven marketing" using SNS short-video advertisements, among other methods, exceeding the same period of the previous year
• Improved customer engagement through collaboration products with well-known artists and characters
• High growth in new business areas (Business Produce and Area Media), up 32.0% year on year in Q1
• Expansion of co-creation businesses balancing social and economic value, including operation of the Osaka-Kansai Expo official online store
• Improvement in gross profit margin (54.8% in Q1, up 1.2 percentage points from 53.6% in the same period of the previous year)
• Creation of new revenue sources through co-creation businesses with local governments and companies (HYOGOSSIMO, AOMORI×Dick Bruna TABLE, etc.)

Risks

• Continued decline in the cumulative number of customers due to reduced purchase frequency among existing customers, making recovery of Teikibin business sales a challenge
• Risk of SG&A expenses remaining elevated due to increased depreciation and amortization associated with the renewal of logistics facilities and procurement systems
• Impact on consumer sentiment from unstable international conditions such as price increases, exchange rate fluctuations, and US tariff hikes
• An ordinary income structure dependent on non-operating income such as foreign exchange gains, making improvement of the core business (operating income/loss) an urgent priority
• Risk of increased selling expenses due to rising labor costs at outsourcing partners for customer support operations, among others
• Risk of delays in developing new customer acquisition methods and declining traffic to the e-commerce site
• New business areas (Expo-related, etc.) have a one-off revenue aspect, making their establishment as a sustainable revenue source a challenge