yutori, Inc.
5892・Growth Market・Retail Trade
Business
yutori Co., Ltd. is a fashion company established in 2018 that primarily targets Generation Z (born 1997–2009) as its core customer base. The company develops numerous brands classified into six divisions—Young Culture, Korean, Nuance, Designer, Cosmetics, and Her lip to—and engages in the planning, retail, and wholesale of apparel and cosmetics products. Its sales channels are centered on its in-house EC site "YZ Store (In-house EC Platform)," while also operating 53 physical stores as of the end of FY2026 (ending March 2026). With an EC ratio of 40.6% and an offline ratio of 48.1%, the company leverages online and offline channels in a mutually complementary manner. It has also actively pursued brand acquisitions through M&A, rapidly expanding its business scale, including making heart relation Co., Ltd. (the Her lip to business) a subsidiary in August 2024.
Business Model
The company gains awareness through social media marketing on platforms such as Instagram and TikTok, driving traffic to its in-house EC site, YZ Store (In-house EC Platform), to generate direct sales revenue. By offering multiple brands on a single platform, it promotes cross-selling, while the membership program "YZ MEMBERS" enhances customer engagement. At physical stores, the company staffs influencers with social media followings and secures profitability through small-format stores that keep initial investment low. The gross profit margin remains at a high level of approximately 63% (FY2026, ending March 2026).
Company Strengths
Under the "Y League" system, profitability of each brand is ranked and managed on a five-tier scale, with a clear standard stipulating that a brand will, in principle, be discontinued if it fails to reach Y4 (breakeven point) within one year of launch. Each brand director staffs personnel close in age to the brand's target demographic, enabling rapid response to changes in trends. A weekly company-wide sharing meeting is also in place to horizontally deploy successful case studies across brands.
The company uses SNS platforms such as Instagram and TikTok as its primary marketing channels, optimizing advertising investment efficiency by managing indicators such as follower count, reach, and profile access count. In FY2026 (ending March 2026), gross profit reached ¥8,987 million, achieving a gross profit margin of approximately 63%. The approach of using SNS to forecast demand and drive awareness ahead of launching sales also contributes to reduced inventory risk.
Starting with the acquisition of F-LAGSTUF-F and the full subsidiarization of A.Z.R in 2022, the company has carried out a series of successive M&A transactions, including the subsidiarization of heart relation (Her lip to business) in August 2024, the full subsidiarization of wo-kaku in November 2024, and the transfer of the minum brand business in December 2024. In FY2026 (ending March 2026), net sales reached ¥14,234 million, up 71.4% year on year, with M&A serving as the primary driver of sales scale expansion.
ENVALITH's Perspective
Performance Trend
Revenue continued its high-growth trajectory, exceeding 70% growth for two consecutive years: ¥4,320 million in FY2024 → ¥8,306 million in FY2025 → ¥14,234 million in FY2026. Operating profit also expanded, from ¥384 million in FY2024 → ¥671 million in FY2025 → ¥1,084 million in FY2026, though the operating margin declined slightly to 7.6% (from 8.1% in the prior period). The main drivers were the contribution of three newly consolidated companies and growth in existing brands. Profit attributable to owners of parent came to ¥310 million (down 1.4% year on year), a modest decline caused by profit attributable to non-controlling interests expanding to ¥233 million. In terms of the external environment, declining consumer purchasing appetite due to price inflation and rising material and logistics costs were headwinds, while an increase in inbound consumption was a tailwind. The equity ratio improved from 14.7% to 24.0% (due to the effect of a capital increase).
Growth Strategy
Four-pronged growth strategy: full consolidation of heart relation, SNS-driven brand expansion, physical store expansion, and M&A
Acquired all shares of heart relation, which operates "Her lip to" and other brands, at an acquisition cost of ¥1,960 million, making it a wholly owned subsidiary (completed April 30, 2026). This eliminates profit outflow to non-controlling shareholders, with profit attributable to owners of parent for the following fiscal year projected at ¥800 million (up 158.1% year on year). Borrowed ¥1,843 million from four banks including Mizuho Bank (repayable in equal installments over 84 months).
Utilizing SNS such as Instagram as the primary channel, the company maintains and strengthens a D2C structure that achieves high purchase conversion rates at low cost. For the following fiscal year, the company targets 30% sales growth (¥18,500 million), positioning SNS-driven customer acquisition as the core pillar of growth.
Invested ¥575 million in capital expenditures for property, plant and equipment during FY2026 (ended March 2026) to expand the physical store network. Building fixtures (net) amounted to ¥936 million (up ¥375 million year on year). The company plans to continue expanding physical stores in the following fiscal year, anticipating increases in rent and personnel costs, while capturing inbound demand.
Consolidated three newly acquired companies (YZ Co., Ltd., pool Co., Ltd., and Youtelly Co., Ltd.) during FY2026 (ended March 2026), expanding the scale of sales. The company aims to maintain a gross profit margin of approximately 60% by expanding its product mix to include cosmetics and other items. For the following fiscal year, the company intends to sustain profit growth while anticipating an increase in the cost of sales ratio.
Last updated: July 19, 2026