Achilles Corporation

Business Details

A consumer goods segment engaged in the manufacture and sale of shoes. Its core brands are the children's brand "Shunsoku", the running shoe brand "BROOKS", and "Achilles Sorbo", which features the shock-absorbing material Sorbothane. The segment serves end consumers both in Japan and overseas. Sales declined due to sluggish consumption stemming from the declining birthrate and weak department store performance, as well as the impact of price revisions, but segment loss narrowed significantly owing to a review of procurement costs and cost reductions. From the current consolidated fiscal year, the reportable segment name has been changed from "Shoes Business" to "Shoes BU (Business Unit)."

Recent Overview

Net sales decreased 11.7% year on year to ¥8,928 million, while the loss narrowed by ¥651 million to ¥321 million

In FY2026 (ending March 2026), net sales of the Shoes BU were ¥8,928 million (down ¥1,187 million, or 11.7%, year on year). Continued sluggish consumption stemming from the declining birthrate and weak department store performance, along with the impact of price revisions, pushed down sales volume. On the other hand, as a result of price revisions in response to changes in the cost environment, together with further cost-reduction activities such as a review of procurement costs and expense reductions, segment loss improved by ¥651 million to ¥321 million (compared with a loss of ¥972 million in the prior period). Although this marks the third consecutive fiscal year of segment loss, the size of the loss has narrowed substantially.

Key Products

Growth Drivers

• Introduction of new products for BROOKS and Achilles Sorbo in response to rising health consciousness and changing lifestyles
• Narrowing of segment loss (an improvement of ¥651 million year on year) through the advancement of price revisions in response to changes in the cost environment
• Efforts to improve profitability through further cost-reduction activities, including a review of procurement costs and expense reductions
• Maintaining the "Shunsoku" brand through the introduction of new products with enhanced functionality (such as slip-resistant waterproof models)

Risks

• Decline in sales volume due to continued sluggish consumption stemming from the declining birthrate and weak department store performance
• Decline in purchasing motivation due to a deteriorating consumption environment amid rising prices
• Downward pressure on sales volume due to the impact of price revisions
• Fragility of the earnings structure due to segment losses recorded for three consecutive fiscal years
• Increase in procurement costs due to yen depreciation (high reliance on overseas procurement is squeezing profitability)