JICHODO Co.,Ltd.

Business Details

Jichodo Co., Ltd. is a single-segment company whose core businesses are the planning, manufacturing, and sale of Uniform Products and men's wear products. The company is composed of Jichodo itself along with two subsidiaries (Genkai Sewing Co., Ltd. and Lion-ya Co., Ltd.) and two affiliated companies (Tachikawa Textile Co., Ltd. and Nanshan Jichodo Protective Technology Co., Ltd.). The company adopts a stock-based business model for user companies via sales agents, maintaining ample inventory to ensure immediate delivery capability. Over 90% of sales are domestic, and the majority of products are manufactured and imported through overseas partner factories.

Recent Overview

Net sales declined 9.2% year-on-year, but ordinary and net profit increased substantially due to reduced SG&A expenses and derivative valuation gains

For the cumulative nine months of FY2026 (ending March 2026) (July 2025 to March 2026), net sales were ¥9,690 million (down 9.2% year-on-year for the same quarter). The main causes were sluggish replacement demand due to increased cost-consciousness among user companies amid rising prices, and lost sales opportunities due to stock shortages. On the other hand, by curbing SG&A expenses to ¥1,984 million (down ¥255 million year-on-year), operating profit was secured at ¥1,324 million (up 4.7% year-on-year). Furthermore, due to the recording of a ¥157 million valuation gain on derivatives related to forward exchange contracts and other factors, ordinary profit increased substantially to ¥1,726 million (up 23.6% year-on-year), and quarterly net profit rose to ¥1,181 million (up 21.1% year-on-year). On the balance sheet, merchandise and products increased by ¥2,590 million from the end of the previous fiscal year to ¥13,411 million, reflecting progress in inventory buildup, and preparations for a counteroffensive ahead of the 2026 spring/summer sales season are underway. There is no change to the full-year earnings forecast (net sales of ¥16,000 million, operating profit of ¥1,800 million).

Key Products

Growth Drivers

• Sales expansion in the heat-countermeasure wear market through promotion of combined wear of Fan-Equipped Wear / Air-Conditioned Wear with cool-touch compression wear
• Appeal to sales agents and users and expansion of market share and sales volume through a price-maintenance strategy for spring/summer products
• Resolution of stock shortages and recovery of trust through inventory buildup (merchandise and products at ¥13,411 million) and strengthened immediate delivery capability
• Stabilization of the supply chain through strengthened cooperation with overseas partner factories, use of air freight, and alternative production at domestic factories
• Recovery in sales through resumption of Footwear production
• Stimulation of demand through active promotion of functional products and Eco-Friendly Products

Risks

• Continued stock shortages and delivery delays (due to troubles at subcontracted factories of overseas partner factories, etc.) leading to lost sales opportunities and delayed recovery of trust from sales agents and users
• Risk that rising prices due to soaring resource and energy costs will heighten cost-consciousness among user companies, leading to sluggish replacement demand
• Risk of rising import costs due to continued yen depreciation (hedged via forward exchange contracts, but changes in valuation gains/losses affect ordinary profit)
• Intensifying competition due to increased entry from companies in other industries into the heat-countermeasure wear market
• Risk of valuation losses on inventory associated with inventory buildup (write-down of book value due to declining profitability)
• Risk of further soaring resource and energy prices and material shortages due to worsening conditions in the Middle East
• Impact on the economy from prolonged U.S. trade policy and geopolitical risks