ATSUGI CO., LTD.
3529・Standard Market・Textiles & Apparels
Textile Business
Atsugi's core business handling manufacturing and sale of Legwear and Innerwear
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Textile Business) | ¥20,156 million | ¥20,626 million | ↓ |
| Operating Loss (Textile Business) | △¥1,495 million | △¥1,378 million | ↓ |
| Segment Assets | ¥27,145 million | ¥28,584 million | ↓ |
| Depreciation | ¥518 million | ¥596 million | ↓ |
| Legwear Net Sales | ¥11,060 million | ¥11,613 million | ↓ |
| Innerwear Net Sales | ¥9,095 million | ¥9,011 million | ↑ |
| Impairment Loss (Textile Business) | ¥221 million | ¥1,723 million | ↑ |
Business Details
Atsugi Co., Ltd. and its consolidated subsidiaries manufacture, procure, and sell Legwear (stockings, tights, etc.) and Innerwear. The major customer is Shimamura Co., Ltd. (approximately 27% of net sales). In addition to domestic wholesale sales, the company is promoting D2C (Own Online Shop / EC Mall) sales as a key initiative. Production bases are located domestically and in China (Yantai), and OEM sales are also conducted.
Recent Overview
Both sales and profit worsened; medium-term management plan withdrawn for a fundamental review
Net sales of the Textile Business for FY2026 (ending March 2026) were ¥20,156 million (down 2.3% year on year), and operating loss expanded to ¥1,495 million (compared with a loss of ¥1,378 million in the prior period). Legwear sales decreased 4.8% due to lower volume despite higher unit prices, while Innerwear sales increased 0.9% supported by strong OEM and EC performance. Rising procurement costs due to the weak yen, persistently high raw material, fuel, logistics, and labor costs, and delays in reviewing the production system at the company's own factory in China worsened manufacturing costs. An impairment loss of ¥221 million was recorded on fixed assets in the Textile Business. Following a significant shortfall in the first year of the plan, the company withdrew its medium-term management plan, which had targeted FY2028 (ending March 2028) as its final year, and began a fundamental review of its earnings structure.
Key Products
Growth Drivers
- Expansion of OEM (original equipment manufacturing) sales: maintaining strong performance mainly in the Innerwear segment
- Increase in Innerwear sales through EC and clothing specialty store channels
- Improvement in unit prices through the market launch of high-value-added products with added functionality
- Development of new customer segments through new product launches targeting Generation Z
- Cost reduction through investment in automation equipment at the company's own factory in China (Yantai) (in progress)
- Value enhancement through expansion of healthcare products and entry into medical applications
- Cost reduction through strengthening the supply system in ASEAN
Risks
- Persistently high procurement costs due to the continued weak yen
- Rising manufacturing costs due to sustained increases in raw material and fuel prices, logistics costs, and labor costs
- Shrinking demand for Legwear due to growing consumer cost-consciousness and frugality
- Deterioration of manufacturing costs due to delays in reviewing the production system at the company's own factory in China
- Risk of additional impairment of fixed assets in the Textile Business (¥221 million recorded in the current period)
- Risk of sales concentration in a specific customer (Shimamura Co., Ltd.) (approximately 27% of net sales)
- Increased strategic uncertainty following the withdrawal of the medium-term management plan
- Continued decline in Legwear sales volume due to shrinking sales floor space at major sales channels (mass retailers)
Last updated: June 26, 2026