ENVALITH
株式会社TOKYO BASE logo

TOKYO BASE Co.,Ltd.

3415・Prime Market・Retail Trade

Official website
株式会社TOKYO BASE logo
TOKYO BASE Co.,Ltd.3415

Business

TOKYO BASE Co., Ltd. is a fashion company whose core business is the retail sale of apparel and personal accessories/miscellaneous goods, under the corporate slogan "From Japan to the World." It operates nine business formats—STUDIOUS, THE TOKYO, UNITED TOKYO, PUBLIC TOKYO, CITY, CONZ, RITAN, JAPAN EDITION, and KEY TIMEZ—targeting fashion-conscious customers in their 20s to 50s. As of the end of January 2026, the company operates a total of 92 physical stores, comprising 78 stores in Japan and 14 overseas stores (in Hong Kong, China, the United States, and South Korea). It maintains a portfolio combining select-shop sales of leading domestic Japanese brands with sales of its own original brands, all of which are made in Japan.

Business Model

Physical store sales account for approximately 81% of revenue (¥19,227 million), while EC sales account for approximately 17% (¥4,056 million). In the select format, the company purchases and sells branded merchandise, while in its own-brand formats (UNITED TOKYO, PUBLIC TOKYO, CITY, RITAN, etc.), it plans, manufactures, and sells all-original, Japan-made products with a high cost ratio. The gross profit margin remained at a high level of 51.8% (up 0.2 points year on year). Balancing an improved proper (full-price) sales ratio with inventory control is key to profitability.

Company Strengths

Against a backdrop of sustained high levels of inbound foreign visitor numbers and spending, physical store sales in FY2026 (ending January 2026) grew 18.7% year on year. The company strengthened roadside stores along inbound visitor routes in areas such as Omotesando, Ginza, and Harajuku, and this location strategy of directly capturing inbound consumption has proven effective. Existing stores also performed well company-wide, with the existing-store year-on-year ratio reaching 111.1%.

The company covers customer segments of different ages and preferences through multiple formats, including CONZ for Generation Z (up 490.5% year on year), RITAN for women in their 30s and 40s (newly launched), and THE TOKYO for the high-end segment (up 37.7% year on year). In FY2026 (ending January 2026), the company launched three new formats and pursued aggressive expansion, opening 28 stores during the period for a net increase of 21 stores.

Proprietary brands such as UNITED TOKYO, PUBLIC TOKYO, CITY, and RITAN feature original products entirely made in Japan, characterized by a high cost ratio. The gross profit margin for FY2026 (ending January 2026) remained at a high level of 51.8% (up 0.2 percentage points year on year). Improvement in the full-price sell-through rate contributed to the margin improvement, and a product planning system that incorporates feedback from store staff serves as a differentiating factor.

ENVALITH's Perspective

Revenue for Q1 of FY2027 (ending January 2027) was ¥6,134 million (up 24.1% year on year), tracking at a pace exceeding the full-year forecast of ¥28,000 million (up 17.4% year on year), and top-line growth remains robust. On the other hand, operating profit of ¥415 million (up 10.1% year on year) fell well short of the revenue growth rate, with the operating margin declining to 6.8% from 7.6% in the same period last year. Upfront cost increases in rent and personnel expenses associated with new store openings are weighing on the margin, and it will be necessary to continuously monitor the pace of recovery on store-opening investments.

The foreign exchange loss of ¥124 million recorded in the same period last year was reduced to zero in the current period, and instead a foreign exchange gain of ¥67 million was recorded. As a result, ordinary profit rose sharply to ¥480 million (up 89.1% year on year), but a substantial portion of the improvement, which far exceeded the increase in operating profit (+¥38 million), was attributable to foreign exchange factors. Although forward foreign exchange contracts are being utilized, the risk remains that foreign exchange fluctuations will continue to affect performance going forward as overseas business expands.

At the end of Q1 of FY2027 (ending January 2027), total assets stood at ¥16,611 million (up ¥1,748 million from the end of the previous fiscal year), while total liabilities surged to ¥10,298 million (up ¥1,701 million). The main drivers were an increase in accounts payable of +¥1,013 million, an increase in long-term borrowings of +¥489 million, and an increase in short-term borrowings of +¥200 million. The equity ratio declined to 37.9% (from 42.0% at the end of the previous fiscal year). Merchandise inventory also increased to ¥4,687 million (up ¥1,026 million), and continued attention is needed regarding potential deterioration in inventory turnover and the emergence of excess inventory risk.

Growth Strategy

Aiming for the final year of FY2028 (ending January 2028) through four pillars: aggressive domestic and overseas store openings, new format development, expansion into a 5th overseas country, and M&A

In Q1 FY2027 (ending January 2027), 12 new stores opened and 3 stores closed, resulting in a net increase of 10 stores, achieving 113 stores at quarter-end (100 physical stores). Continued store openings in major domestic commercial areas centered on core formats STUDIOUS, UNITED TOKYO, and PUBLIC TOKYO. Although staff dilution associated with new store openings affected existing stores, the company maintained overall existing-store sales at 106.1% year-on-year.

In Q1 FY2027 (ending January 2027), a total of 6 stores were launched, including Omotesando (MENS and WOMENS), Shinjuku, Osaka, the company's own EC site, and ZOZO. Due to the limited number of operating days, the Q1 contribution was limited (sales of ¥149 million), with a substantial expansion of contribution expected going forward. The company is leveraging know-how for developing new formats based on the success cases of JAPAN EDITION (260.9% year-on-year) and CONZ (244.3% year-on-year).

Overseas business sales continued to grow, reaching 137.2% year-on-year. Expansion into the Asian region, including the first store in Seoul, South Korea, is progressing smoothly. In FY2027 (ending January 2027), the company will pursue expansion into a 5th overseas country while also focusing on enhancing its presence in South Korea and the United States, where it currently operates through non-consolidated subsidiaries. In Hong Kong, multiple formats were opened at the Fashion Walk store.

The company completed structural reforms aimed at breaking away from a "discount-dependent" business model, establishing an EC operating structure that maintains gross margin. The company's own EC site grew to 126.5% year-on-year, and ZOZO grew to 154.9% year-on-year. ZOZO flash sales, which increased in the previous period for the purpose of clearing remaining inventory, are being continued within a range that controls gross margin. The company is strengthening demand capture through a 5-season merchandising rollout and enhanced real-time product supply capabilities.

In addition to utilizing forward foreign exchange contracts, the company is considering diversifying its risk hedging schemes. In Q1 FY2027 (ending January 2027), ordinary income expanded by +89.1% year-on-year due to the elimination of foreign exchange losses and the recording of foreign exchange gains. With the goal of promoting management conscious of cost of capital and maximizing shareholder value, the annual dividend forecast for FY2027 (ending January 2027) is ¥7.00 (an increase from ¥6.00 in the previous period).

Last updated: July 17, 2026