ENVALITH
株式会社スタジオアタオ logo

STUDIO ATAO Co., Ltd.

3550・Growth Market・Retail Trade

Official website
株式会社スタジオアタオ logo
STUDIO ATAO Co., Ltd.3550

Business

Studio ATAO Co., Ltd. upholds the corporate philosophy of "Bringing Entertainment to Fashion," and operates a total of four brands—flagship brand 'ATAO,' which originated in Kobe's former foreign settlement, along with 'IANNE,' 'ILEMER,' and 'StrawberryMe'—as a company that plans and sells original bags, wallets, and related products. Sales are conducted through 12 domestic stores (department stores and commercial facilities) as well as the company's own e-commerce site "ATAOLAND+," Rakuten Ichiba, and Yahoo! Shopping. The company's core customer base centers on domestic women's fashion demographics, and in recent years it has been working to expand into male customers, younger age groups, and inbound (foreign tourist) customers. The company is listed on the Tokyo Stock Exchange Growth Market.

Business Model

A direct sales model in which self-planned products are sold through directly-operated stores (12 locations) and a group of e-commerce sites (ATAOLAND+, Rakuten, Yahoo!). Production management is outsourced to Sakata Co., Ltd., allowing management resources to be concentrated on planning and sales. Sales staff are hired as full-time employees and positioned as brand PR ambassadors, with O2O initiatives leveraging SNS and blogs to achieve mutual customer referral between online and offline channels. The company pursues stable earnings by nurturing evergreen products that are not swayed by trends and by acquiring repeat customers.

Company Strengths

The company positions "product planning that is not swayed by trends and know-how for turning staple products into popular items" as its core strength. It holds a portfolio of long-term staple products such as the limo series, and focuses on cultivating brand fans that outlast passing booms. Existing store sales in FY2025 (ended February 2025) grew a stable +6.8% year on year.

Centered on the mall-type EC site "ATAOLAND+" launched in August 2022, the company successively opened a Rakuten Ichiba branch store in October 2023 and a Yahoo! store in November 2024. Internet sales in FY2025 (ended February 2025) achieved high growth of ¥1,786 million (up +23.5% year on year), growing into a major channel on par with store sales (¥1,903 million).

Under the ILEMER brand, the company has rolled out collaboration items with Sanrio Characters (Hello Kitty 50th anniversary, Little Twin Stars 50th anniversary), contributing to the acquisition of new customers and inbound customers. In November 2024, it began sales to the U.S. lifestyle goods chain "HOT TOPIC," starting to build a track record in overseas expansion.

ENVALITH's Perspective

Quarterly net income for Q1 of FY2027 (ending February 2027) increased sharply by 25.1% year-on-year to ¥64 million. However, progress against the full-year forecast of ¥220 million was 29.1%, and given the seasonal pattern of the business (weighted toward the second half), this cannot be characterized as a particularly strong upside surprise. Net sales rose only slightly, up 0.3% year-on-year to ¥1,071 million, and it is worth noting that the pullback from the prior-year hit product "Block Party Shangri-La Pink" affected EC sales (down 6.5% year-on-year).

Store sales for the quarter were solid at ¥544 million (up 8.1% year-on-year), supported by the contribution of newly opened ATAO Abeno Harukas and ILEMER Shinjuku stores. On the other hand, EC sales came to ¥526 million (down 6.5% year-on-year), impacted by the falloff from the prior period's exceptional demand. It is commendable that operating profit was secured through cost ratio improvement despite one-time expenses associated with new store openings and store relocations, but SG&A and other expenses increased by ¥76 million year-on-year, and rising fixed costs remain a constraint on profit expansion.

The full-year forecast for FY2027 (ending February 2027) calls for net sales of ¥4,500 million (up 9.1% year-on-year) and operating profit of ¥330 million (up 37.9% year-on-year), reflecting an ambitious growth rate and a substantial expected improvement in profit compared with the prior period. Achieving this will require a recovery in EC sales that absorbs the pullback from the prior period's hit product, as well as an early return to profitability at newly opened stores. As an external factor, ongoing price increases and rising material costs persist, posing a risk that upward pressure on procurement costs could affect the sustainability of cost ratio improvement.

Growth Strategy

Pursuing mid- to long-term growth along four axes: OMO enhancement, expansion of new EC channels, new store openings, and new product launches

In addition to the mall-type new EC site "ATAOLAND+," the company opened "ATAO Rakuten Ichiba Branch" and "ATAO Yahoo! Store," building out multiple EC channels. Improvement in advertising effectiveness and positive impact on overall sales have been confirmed, aiming to maximize customer touchpoints through mutual customer referral between stores and EC.

In April 2026, ATAO Abeno Harukas store and ILEMER Shinjuku store (Shinjuku Marui Main Building) will newly open, and in March 2026, "ILEMER TOKYO avec le IANNE" was expanded and relocated to the 1st floor of Hibiya Chanter. In-store sales for the current Q1 rose 8.1% year on year, driving growth, with the effect of new store openings reflected in the figures.

The company launched the "SAFARILAND Series" commemorating ATAO's 18th anniversary, and the brand's 20th anniversary limited items "Block Party Candy Mix" and "SAFARILAND Classic Chess," among others, strengthening appeal to a wide range of customer segments. This is disclosed as contributing to the acquisition of new and male customers.

Under the IANNE brand, apparel-related goods from the "Graffiti Series" have performed well, contributing to an overall boost for the brand. At ILEMER, the Little Twin Stars 50th anniversary collaboration items and the brand's 10th anniversary limited Happy Doll have been well received, contributing to expanding brand awareness.

Last updated: July 17, 2026