Classico, Inc.

Business Details

Under the mission of "Bringing sensibility to medical settings," the company provides medical apparel—including lab coats, scrubs, patient gowns, and related accessories—to healthcare professionals such as doctors and nurses. It operates through four channels: Domestic EC, Domestic Directly-Operated Stores, corporate sales, and Overseas EC, offering high-value-added products with meticulous attention from yarn selection through to sewing. The company listed on the TSE Growth Market in November 2025. As it operates as a single segment, company-wide results are equivalent to segment results.

Recent Overview

H1 revenue fell 7.9% and operating loss widened to ¥189 million, mainly due to a second-half-weighted corporate delivery schedule

In H1 of FY2026 (ending October 2026) (November 2025 to April 2026), revenue was ¥1,560 million (down 7.9% year on year), and the operating loss was ¥189 million (compared to operating income of ¥46 million in the same period a year earlier), a significant deterioration. The main cause was that domestic corporate sales delivery schedules for the current fiscal year were weighted toward the second half, resulting in a large year-on-year decline in the first half. Meanwhile, selling, general and administrative expenses increased substantially to ¥1,002 million (up ¥154 million year on year), putting pressure on earnings. The company is pursuing initiatives such as the December 2025 opening of official stores on Rakuten Ichiba and Amazon and expansion into 17 overseas countries and regions. There has been no change to the full-year earnings forecast (revenue of ¥4,250 million, operating income of ¥233 million), with a recovery expected in the second half. As a subsequent event, the company resolved on June 30, 2026 to issue the 6th and 7th series of stock acquisition rights (totaling 44,900 shares, with a maximum dilution rate of 2.17%).

Key Products

Growth Drivers

• Rapid increase in the number of facilities adopting the "lifte" patient gowns (sales to Elan reached ¥1,397 million in FY2025 ending October 2025, up 38.1% year on year)
• Strengthened acquisition of new customers centered on entry-level models following the opening of official stores on Rakuten Ichiba and Amazon (December 2025)
• Expansion of overseas countries and regions (United States, Canada, and Australia added in November 2025, bringing the total to 17 countries and regions)
• Expanded approach to new customer segments through strategic inventory investment in the entry-level "PACK series"
• Cost reduction through a capital and business alliance with MN Interfashion Co., Ltd. (including shifting overseas inspection operations and consolidating suppliers)
• Improved purchasing power of medical institutions due to positive revisions to medical and long-term care fee schedules (the FY2025 large-scale supplementary budget's "Medical and Long-Term Care Support Package")
• Increased number of healthcare professionals due to demographic changes and increased per-person purchase volume driven by heightened infection-prevention awareness

Risks

• Seasonality/second-half-weighted risk: Domestic corporate sales delivery schedules tend to be weighted toward the second half, structurally causing losses in the interim period. An operating loss of ¥189 million was recorded in H1 of FY2026 (ending October 2026)
• SG&A expense increase risk: Interim selling, general and administrative expenses rose sharply to ¥1,002 million (up 18.1% year on year), significantly pressuring profitability when not accompanied by revenue growth
• Inventory risk: Inventory (products plus raw materials) stood at ¥1,440 million at the end of the interim period, accounting for 59.1% of total assets, creating a risk of excess inventory buildup due to demand forecasting errors
• Customer concentration risk: Dependence on Elan Co., Ltd. for sales is high, at 38.5% in FY2025 (ending October 2025), meaning changes in the relationship with this company would directly affect performance
• Profitability risk: Supply of low-priced products from competitors and rising procurement costs due to exchange rate fluctuations could pressure gross profit margin
• Overseas expansion risk: Downside economic risks from uncertainty over US tariff measures, unstable international conditions, and continued yen depreciation could affect overseas sales
• Listing-related expenses: Listing-related expenses associated with the TSE Growth Market listing (November 2025) are recorded as non-operating expenses (¥2 million in H1 of FY2026 ending October 2026)
• Dilution risk: The resolution to issue the 6th and 7th series of stock acquisition rights (totaling 44,900 shares) could result in dilution of up to 2.17%