yutori, Inc.

Business Details

A single segment engaged in the planning, retail, and wholesale of apparel and cosmetics products. Targeting Generation Z as the primary customer base, the company operates more than 20 brands across six divisions: Young Culture, Korean, Nuance, Designer, Cosmetics, and Her lip to. Sales channels are centered on the in-house EC site "YZ Store", ZOZOTOWN, and physical stores. Key characteristics include purchase experience design starting from SNS marketing and autonomous decentralized brand operation through the "Y League" framework.

Recent Overview

Net sales grew significantly by 71.4%, but net income attributable to owners of parent declined slightly due to increased extraordinary losses and other factors

In FY2026 (ending March 2026), net sales reached ¥14,234 million (up 71.4% year on year) and operating income reached ¥1,084 million (up 61.4% year on year), achieving substantial growth in both revenue and profit. The contribution of three newly consolidated subsidiaries (YZ Co., Ltd., pool Co., Ltd., and Youterlee Co., Ltd.) supported this expansion. On the other hand, due to the recognition of extraordinary losses such as impairment loss of ¥55 million and loss on retirement of fixed assets of ¥34 million, as well as an increase in profit attributable to non-controlling interests (from ¥109 million to ¥233 million), net income attributable to owners of parent decreased 1.4% year on year to ¥310 million. As a subsequent event, in April 2026 the company completed the full acquisition of heart relation as a wholly owned subsidiary at an acquisition cost of ¥1,960 million, and expects an expanded scope of profit incorporation from the following fiscal year.

Key Products

Growth Drivers

• Expansion of the scope of profit incorporation and substantial growth in net income attributable to owners of parent (forecast up 158.1% in the following fiscal year) resulting from the full consolidation of heart relation Co., Ltd. (Her lip to business) as a wholly owned subsidiary (completed April 2026)
• Expansion of sales scale driven by contribution from newly consolidated subsidiaries (YZ Co., Ltd., pool Co., Ltd., and Youterlee Co., Ltd.)
• Continued expansion of brand awareness and purchase conversion utilizing SNS marketing
• Strengthening of offline sales and capture of inbound demand through physical store expansion of key brands (tangible fixed assets building fixtures increased ¥375 million year on year)
• Continued growth of online sales centered on the in-house EC site "YZ Store"
• Policy to maintain a gross profit margin of approximately 60% through expansion of the product mix including cosmetics

Risks

• Risk of dependence on sales and profit from specific brands (such as Her lip to) (although the impact of non-controlling interests will be eliminated after full consolidation as a wholly owned subsidiary, dependence on a single brand may increase)
• Risk of increased financial burden and rising interest rates due to substantial borrowings (¥1,843 million, repayment period of 84 months) associated with the full consolidation of heart relation as a wholly owned subsidiary
• Risk of rising cost ratio due to persistently high raw material prices and logistics costs, and changes in the product mix such as cosmetics (target gross profit margin of approximately 60% in the following fiscal year)
• Risk of demand decline due to increasing consumer thrift consciousness and selective purchasing tendencies
• Risk of inventory valuation losses due to sudden changes in fashion trends (inventory balance of ¥2,702 million, a significant increase year on year)
• Risk of goodwill impairment associated with M&A activities (goodwill balance of ¥734 million) and occurrence of impairment losses (¥55 million recognized in the current period)
• Emergence of foreign exchange risk associated with foreign currency translation adjustments at overseas subsidiaries (such as Youterlee Co., Ltd.)