ATSUGI CO., LTD.
3529・Standard Market・Textiles & Apparels
Business
Atsugi Co., Ltd. is a long-established textile manufacturer founded in 1947, with its core business in the manufacture and sale of Legwear products such as stockings, tights, and pantyhose, as well as Innerwear. The company has 8 consolidated subsidiaries in Japan and overseas, and has built a global supply chain including production at its own factory in Yantai, China. Its major customers are apparel specialty stores, EC platforms, and OEM partners, led by Shimamura (28.5% of net sales). In addition to the Textile Business, the company operates a real estate leasing and sales business centered in Ebina City, Kanagawa Prefecture, as well as Others segment businesses covering the sale of nursing care products, Group Home Operation, and Electricity Sales from Solar Power Generation. Consolidated group net sales totaled ¥21,469 million (FY2026, ending March 2026).
Business Model
In the Textile Business, the company operates wholesale and EC sales of its own brand products, together with OEM (Original Equipment Manufacturer) contract manufacturing and sales, recording net sales of ¥20,156 million. Meanwhile, the Real Estate Business, despite net sales of only ¥697 million, achieves a high operating margin of 77.2%, and as the group's only stably profitable segment, partially offsets losses in the Textile Business. Funding is based primarily on internal resources, supplemented by borrowings from financial institutions as needed.
Company Strengths
Since its founding in 1947, the company has continued manufacturing and selling stockings, tights, and pantyhose, building long-standing brand recognition in the domestic Legwear market. In autumn/winter 2025, it renewed the multi-pack tights brand "Atsugi TIGHTS," adopting sustainable materials across all products, and continues to carry out ongoing brand renewal.
The Real Estate Business achieved net sales of ¥697 million against operating income of ¥538 million, an operating margin of 77.2%, functioning as the group's sole profitable segment. Land leasing in Ebina City, which began in October 2024, contributed for a full year in FY2026 (ending March 2026), resulting in a 9.1% year-on-year increase in revenue and a 10.9% increase in profit. Combined with a solid financial base reflected in an equity ratio of 80.2%, this serves as a structurally stable revenue source that helps offset losses in the Textile Business.
In the Innerwear segment, OEM sales, EC, and apparel specialty store channels performed well, with sales rising 0.9% year on year to ¥9,095 million. The company invested ¥391 million in R&D, continuously launching functional, high-value-added products such as "Sururtto Chakuatsu" (gentle compression) and "NUDE Make." It is also diversifying sales channels, including expansion into wholesale channels.
ENVALITH's Perspective
Performance Trend
Revenue continued its slight decline, falling to ¥21,469 million in FY2026 (ending March 2026), down 1.9% year on year. Operating loss widened to ¥1,019 million (versus a loss of ¥930 million in the prior period), and net loss expanded to ¥1,137 million (versus a loss of ¥376 million in the prior period). External factors—yen depreciation, elevated raw material and fuel costs, and persistently high logistics costs—pushed up manufacturing costs, offsetting the improvement effect from price revisions. The company recorded an impairment loss of ¥221 million on fixed assets in the Textile Business as an extraordinary loss. The expansion of the net loss was also partly attributable to the drop-off of one-time factors recorded in the prior period, such as business structure improvement expenses (¥1,826 million) and gain on sale of investment securities (¥1,772 million). The five-year trend in operating income/loss—¥(2,293) million → ¥(2,131) million → ¥(425) million → ¥(930) million → ¥(1,019) million—shows continued deterioration following a temporary improvement in FY2024 (ending March 2024).
Growth Strategy
Fundamental overhaul of the earnings structure combined with value-added product expansion and asset utilization to drive earnings recovery
Continued capital investment to promote automation at the Yantai plant, aiming to reduce costs through more efficient production systems. In FY2026 (ending March 2026), delays in restructuring the production system have been a factor worsening manufacturing costs, making early realization of benefits an urgent priority.
Aiming to improve unit prices and open up new markets by entering functional products, healthcare products, and medical applications. In FY2026 (ending March 2026), the sales contribution from new products remains limited, and full-scale earnings contribution remains a future challenge.
Aiming to strengthen the supply system in the ASEAN region in order to diversify the procurement and manufacturing system away from dependence on China. This is expected to have benefits both in addressing yen depreciation risk and in reducing manufacturing costs, but specific progress has not been disclosed.
Proceeding with the sale of policy-held shares included in investment securities (¥4,353 million at the end of FY2026 (ending March 2026)) to improve cash flow. Proceeds from sales in FY2026 (ending March 2026) amounted to only ¥113 million, a significant decrease from the previous fiscal year (¥3,080 million).
The medium-term management plan announced in September 2025 (targeting consolidated operating profit of ¥1.0 billion in the final year, FY2028 (ending March 2028)) was withdrawn in its very first year, and the company has begun a fundamental review including earnings structure reform. The new medium-term management plan and the earnings forecast for FY2027 (ending March 2027) are currently undetermined.
Last updated: July 19, 2026