ICHIKURA CO., LTD.

Business Details

Under the integrated "Japanese Apparel Business Division" structure that merged the JTS Business Division and the Ondine Business Division, the company provides a one-stop offering of kimono/furisode sales and rental, coming-of-age ceremony pre-wedding photography, kimono dressing and hair & makeup, the Kimono Dressing School "Ichiru," Shikkai Service (Kimono Maintenance & Repair), and mail order sales. The company aims to differentiate itself from competitors through SPA-ification of furisode (an integrated system of planning, manufacturing, and sales). In FY2026 (ending March 2026), net sales of ¥14,984 million accounted for approximately 77% of consolidated net sales, making it the core business.

Recent Overview

Business division integration and firm order intake, but rising rental ratio pressured sales and profit

In FY2026 (ending March 2026), the company integrated the JTS Business Division and the Ondine Business Division into the "Japanese Apparel Business Division," promoting operational efficiency. Private brand products performed well, and orders remained firm, with the period-end order backlog improving to ¥5,962 million (up 15.9% year on year) as a leading indicator. On the other hand, as the furisode purchasing demographic shifted toward younger customers, customer needs shifted from "purchase" to "rental," and the rental ratio rose more than initially expected. As sales are allocated proportionally over the contract period, net sales came to ¥14,984 million (down 1.9% year on year), and segment profit came to ¥765 million (down 24.6% year on year).

Key Products

Growth Drivers

• The period-end order backlog of ¥5,962 million (up 15.9% from the prior period-end) improved as a leading indicator, and is expected to contribute to sales in the following period
• Gross margin improvement effect from the strong performance of private brand products
• Focused allocation of human resources and improved cost structure through business division integration (consolidation into the Japanese Apparel Business Division)
• Proposal of new furisode styles and capture of younger customers through the launch of the new brand "one&only Grace"
• Promotion of kimono culture and enhanced brand recognition through events such as the "Universal Kimono Award 2025" kimono contest
• Expansion of customer touchpoints through strengthening of the Kimono Dressing School "Ichiru" and enhanced franchise development
• Differentiation from competitors and strengthened price competitiveness through SPA-ification of furisode (an integrated system of planning, manufacturing, and sales)

Risks

• Structural decline in the coming-of-age ceremony age demographic (a key customer base) due to the declining birthrate
• Expansion of proportional sales allocation over time and downward pressure on sales revenue due to the rental ratio for furisode demand rising more than expected
• Profitability pressure from increased amortization of rental products (¥507 million in FY2026 (ending March 2026)) accompanying the rise in rental ratio
• Fixed cost burden from increases in store opening costs, store operating expenses, advertising expenses, and other costs
• Decline in direct mail customer acquisition following revisions to the Personal Information Protection Act
• Risk of recording inventory valuation losses due to increases in slow-moving inventory
• Occurrence of impairment losses associated with store closures (¥63 million recorded in the Japanese Apparel Business in FY2026 (ending March 2026))