Primo Global Holdings Co., Ltd.

Business Details

The domestic bridal jewelry business operated by Primo Japan Co., Ltd. Operates two brands, I-PRIMO and LAZARE DIAMOND, selling engagement and wedding rings mainly through a select-order sales format. Its strengths lie in strong customer service capability developed through a proprietary talent development program and differentiation through value-added products. While working on phased price revisions and cost improvements, both average customer spending and customer count have trended steadily.

Recent Overview

Driven by LAZARE DIAMOND's acquisition of procurement rights and record-high sales across all stores, revenue and profit growth continued.

In the cumulative third quarter of FY2026 (ending March 2026) (September 2025 to May 2026), the Domestic Business posted revenue of ¥14,780 million (up 14.8% year on year) and segment profit of ¥2,118 million (up 10.6% year on year), achieving both revenue and profit growth. Higher average customer spending from price revisions and steady customer count trends contributed. In April, the company acquired diamond procurement rights from Lazare Kaplan International, strengthening vertical integration. LAZARE DIAMOND achieved record-high sales across all stores. On the other hand, the surge in precious metal prices has outpaced the effects of pricing measures, becoming a factor lowering gross profit margin, with improvement expected from the fourth quarter onward.

Key Products

Growth Drivers

• Increase in average customer spending through phased product price revisions (in response to soaring prices of precious metals such as platinum)
• Strengthened vertical integration and improved gross profit margin through LAZARE DIAMOND's acquisition of diamond procurement rights
• Strong sales trends for both brands, including LAZARE DIAMOND achieving record-high sales across all stores
• Differentiation through value-added products such as PRIMO QUALITY DIAMOND and Pale Brown Gold
• Strengthened customer draw through relocation and renovation to leading commercial facilities (e.g., relocation and renewal of the Shinsaibashi store)
• Initiatives to enhance brand awareness and value, such as the "DIAMOND CAFE" pop-up event
• Building long-term relationships with existing customers through expansion of Anniversary Jewelry
• Differentiation of brand experience through high-quality customer service based on talent education

Risks

• Risk of market contraction due to the ongoing decline in the number of marriages in Japan caused by the declining birthrate
• Risk that soaring raw material prices such as diamonds, gold, and platinum will squeeze gross profit margin (profit margin decline in phases where price revisions lag behind price increases)
• Risk of intensifying competition as jewelry brand companies strengthen their bridal offerings
• Risk of rising costs to secure and develop talent (since customer service capability is the source of competitive advantage, rising labor costs could pressure profitability)
• Risk of delayed response to technological innovation in the digital marketing field
• Risk of demand fluctuation due to the impact of price trends, the situation in the Middle East, and other factors on personal consumption

Business Details

Five overseas subsidiaries sell bridal jewelry in Greater China (mainland China, Taiwan, Hong Kong), Singapore, and Malaysia. With I-PRIMO as its core brand, the segment continues to expand store openings in mainland China and Southeast Asia, leveraging high-quality products and attentive customer service cultivated in Japan as its strength. In the cumulative third quarter of FY2026 (ending March 2026), the segment achieved significant profit growth with revenue of ¥8,489 million (up 11.6% year on year) and segment profit of ¥788 million (up 46.1% year on year). It accounts for 36.5% of Group revenue and 27.1% of segment profit.

Recent Overview

Continued new store openings in mainland China and first entry into Malaysia accelerated expansion

In the cumulative third quarter of FY2026 (ending March 2026), the segment achieved significant profit growth with revenue of ¥8,489 million (up 11.6% year on year) and segment profit of ¥788 million (up 46.1% year on year). In mainland China, following the new store opening in Zhengzhou in November 2025, the company opened the third Beijing store, "I-PRIMO Beijing China World Mall Store," and the third Hangzhou store, "I-PRIMO Hangzhou Westlake 66 Store," in April 2026. In Southeast Asia, in Malaysia, a newly entered region, preparations proceeded toward the opening of the first I-PRIMO store in June 2026. Additionally, Primo Diamond Malaysia Sdn. Bhd. was newly added to the scope of consolidation from this quarter.

Key Products

Growth Drivers

• Continued store network expansion and business growth through new store openings in mainland China (Zhengzhou, Beijing, Hangzhou)
• Geographic expansion through new entry into the Southeast Asian market (Malaysia)
• Expansion of the I-PRIMO brand in Southeast Asian markets such as Singapore and Malaysia
• Expansion of the customer base through multi-brand deployment of I-PRIMO, K.UNO, and STAR JEWELRY
• Strengthening organizational capability in each market through global appointment of local talent
• Differentiation from local competitors through high-quality products and attentive customer service based on Japanese standards
• Execution of product lineup, sales, pricing, and marketing strategies tailored to customer needs in each market

Risks

• Continued economic slowdown and consumer spending restraint in mainland China due to stagnation in the real estate market
• Impact on the mainland China business from deterioration in Japan-China relations
• Impact on business results from foreign exchange fluctuations (yen depreciation and local currency movements), including translation differences on goodwill and intangible assets
• Increased costs from upfront investment (talent development and store development) associated with overseas business expansion
• Regulatory changes and political risks in each country and region
• Difficulty in securing and developing local talent under a business model dependent on customer service capability in a select-order format
• Business launch risk in newly entered markets such as Malaysia