JANOME Corporation

Business Details

The core segment, accounting for approximately 76% of Group sales, which develops, manufactures, and sells household sewing machines, embroidery machines, and related software. Development and manufacturing are handled by the Company and its manufacturing subsidiaries in Taiwan and Thailand, with deployment worldwide across North America, Europe, Asia, and Oceania through sales subsidiaries in the U.S., U.K., Australia, and elsewhere. Domestically, the segment also handles sales through distributors and to schools. The core of the earnings strategy is enhancing the added value of mid/high-end models and uncovering latent demand.

Recent Overview

Net sales increased, but operating income decreased by ¥304 million year on year due to intensifying competition and a rebound effect from the prior year.

In FY2026 (ending March 2026), the Household Products Business achieved higher sales of ¥29,787 million (up ¥1,013 million year on year), but operating income declined to ¥1,854 million (down ¥304 million year on year). North America expanded to ¥11,602 million in sales on steady demand for mid/high-end models, while the Asian market experienced a rebound decline from the prior period's strength, and Europe was affected by weakening consumption and intensifying competition. The Company promoted the introduction of competitive products and strengthened its sales system for emerging markets, with sales trending toward recovery. Domestically, the Company opened the official online shop "Sewing Marche" to expand sales channels, and sales through distributors and to schools remained steady.

Key Products

Growth Drivers

• Continued steady sales of mid/high-end models in the North American market and maintenance of brand strength
• Recovery in sales through the introduction of competitive products and strengthened sales systems in emerging markets
• Expansion of sales channels and uncovering of latent demand through the launch of the official online shop "Sewing Marche"
• Ongoing communication and market expansion through SNS and event participation domestically
• Cultivation of future users and a stable demand base through strengthened sales to schools
• Improved profitability through mix shift toward mid/high-end models

Risks

• Risk of rising sales costs and demand suppression in the North American market due to U.S. trade policy (reciprocal tariffs, etc.)
• Continued weak sewing machine demand due to cooling consumption and a challenging competitive environment in the European market
• Sluggish demand in the Asian market (China and certain regions) due to a rebound decline from the prior period and weak domestic demand
• Price pressure from intensifying competition and competition with low-priced models in emerging markets
• Downward pressure on the global economy from geopolitical risks (Middle East situation, etc.)
• Deterioration in consumer sentiment due to price increases and stagnant real income growth stemming from currency fluctuations

Business Details

This segment manufactures and sells Desktop Robots (Cartesian Robots) and Servo Presses (Electro Presses), as well as Die-Cast Castings handled by JANOME Die Casting Co., Ltd. and others. Its main customers are in the automotive, smartphone, and precision equipment industries, and its strategy is to capture demand for labor-saving and electrification. However, rising cost ratios due to persistently high raw material prices in the die-casting business have pressured earnings, resulting in an operating loss for the segment as a whole for two consecutive periods.

Recent Overview

Net sales increased by ¥1,314 million year on year, but the operating loss widened by ¥120 million to -¥543 million.

In FY2026 (ending March 2026), the Industrial Equipment Business saw steady orders in the robot and press businesses on the back of increasing capital investment demand in the Asian market, centered on China, and orders also increased in the Indian market following the commencement of operations by the Indian sales subsidiary "JIE-India." Net sales increased substantially to ¥6,155 million (up ¥1,314 million year on year). Meanwhile, in the die-casting business, although order conditions trended toward improvement, the cost ratio increase due to persistently high raw material prices continued, and the operating loss widened to ¥543 million (compared to -¥423 million in the prior period).

Key Products

Growth Drivers

• Increasing capital investment demand in the Asian market, centered on China (steady orders in the robot and press businesses)
• Increased orders in the Indian market and the establishment of a technical support framework following the commencement of operations by the Indian sales subsidiary "JIE-India"
• Medium- to long-term expansion of the servo press and robot markets driven by progress in decarbonization, labor-saving, and electrification
• Active participation in domestic and overseas exhibitions and preview events, and expansion of the product lineup in response to customer needs
• Efforts to improve the profit structure in the die-casting business through sales price reviews and cost reduction measures

Risks

• Continued pressure on earnings from rising cost ratios due to persistently high raw material prices in the die-casting business
• Delays in global capital investment plans and demand declines linked to production plans of industrial robot manufacturers
• Dependence on a specific market (the automotive industry) and risk from structural changes in that industry
• Deterioration in capital investment sentiment due to U.S. trade policy (reciprocal tariffs, etc.) and geopolitical risks (Middle East situation, etc.)
• Risk of slowing capital investment demand for China due to a downturn in the Chinese real estate market and weak domestic demand

Business Details

Comprises three businesses: IT Software Development, Information Processing Services, and System Operation Management. The Group provides external customers with system construction and management expertise cultivated within the JANOME Group. Although the sales scale is small at approximately 7% of the Group total, the operating margin exceeds 18%, the highest level among all segments, and in FY2026 (ending March 2026) operating income reached a record high, contributing to stabilizing the Group's earnings.

Recent Overview

Driven by expanding DX demand, both net sales and operating income reached record highs.

In FY2026 (ending March 2026), the IT-Related Business achieved substantial growth in both sales and profit, with net sales of ¥2,896 million (up ¥366 million, or +14.5%, year on year) and operating income of ¥537 million (up ¥136 million, or +33.9%, year on year). Operating income reached a record high. Against a backdrop of expanding DX demand, the Company worked to improve productivity and strengthen quality management, securing stable order intake through new customer development and strengthened relationships of trust with existing customers. The operating margin also improved substantially from 15.9% to 18.5%, maintaining outstanding profitability within the Group.

Key Products

Growth Drivers

• Continued corporate IT investment against a backdrop of expanding DX demand (increased demand across IT software development and information processing services generally)
• Stable order intake secured through new customer development and strengthened relationships of trust with existing customers
• Accumulated experience in DX system construction within the JANOME Group and its external deployment (a strategic policy of the medium-term management plan "Move! 2027")
• Business expansion through synergy creation with other businesses (Household Products and Industrial Equipment) (a key initiative under "Move! 2027")

Risks

• Rising costs for securing and training engineers due to the worsening shortage of IT personnel
• Risk of the existing self-operated server-based business model becoming obsolete amid the rapid progress of cloud adoption and DX
• Relatively small sales scale (approximately 7% of the Group total), meaning fluctuations in orders from major customers have a comparatively large impact on results
• Uncertainty in maintaining profitability due to intensifying competition for personnel and projects with competing IT companies

Business Details

A business segment in which JANOME Corporation itself conducts real estate leasing. It is classified as a business not included in the reportable segments (Household Products, Industrial Equipment, and IT-Related). Sales are recorded as "Other revenue," and although the segment accounts for less than 1% of Group total sales, it maintains a high-profitability structure with an operating margin exceeding 48%. Capital investment is nearly zero, and it functions as a stable source of cash generation.

Recent Overview

Segment assets contracted substantially due to progress in asset sales, and an impairment loss of ¥379 million was recorded.

In FY2026 (ending March 2026), the Company recorded income of ¥1,607 million from the sale of tangible fixed assets (investing cash flow), and real estate leasing segment assets shrank substantially from ¥2,795 million in the prior period to ¥850 million. Net sales also decreased 34.4% from ¥195 million to ¥128 million. Meanwhile, an impairment loss of ¥379 million related to real estate leasing (versus ¥5 million in the prior period) was recorded under the "Other" category, pushing up extraordinary losses. The operating margin improved year on year to 48.4%, but the absolute amount continued to shrink, at ¥62 million.

Key Products

Growth Drivers

• Stable rental income from existing owned real estate
• High-margin structure requiring no capital investment (operating margin exceeding 48%)

Risks

• Continued shrinkage of sales and asset scale due to the sale of non-business-use assets aimed at improving capital efficiency (segment assets fell sharply by ¥1,945 million year on year)
• Risk of impairment losses related to real estate leasing, etc. (¥379 million recorded in the current period, a substantial increase year on year)
• Risk of future loss of the rental income base as progress is made in the sale of owned real estate