WASH HOUSE CO.,LTD.

Business Details

Consists of two divisions: FC Package Sales (FC Division) for the self-laundry "WASH House" and Centralized Store Management & Operations (Store Operations Division) covering all FC and directly-operated stores. The company provides 24/7/365 call center services, remote IoT management, cleaning, and detergent replenishment on behalf of FC owners, generating stock revenue proportional to the number of FC stores. As of the end of March 2026, the company operates 494 FC stores. The company is also promoting expansion of the sponsor advertising business through the WASH House App advertising system, as well as domestic and overseas sales of original washers and dryers.

Recent Overview

In Q1 2026, the FC Division saw a sharp decline in sales, resulting in an operating loss of ¥77 million.

In Q1 2026 (January-March), Self-Laundry Business sales were ¥458 million (down 12.1% year on year), and the segment posted a loss of ¥77 million (compared to a profit of ¥1 million in the same quarter of the prior year). The FC Division saw only 1 new store opening and 5 renewals, with sales plunging to ¥41 million (down 60.6% year on year). Regarding the number of FC stores, while 1 new store opened in the Kyushu area, 2 stores were converted to directly-operated stores and 4 stores closed due to owner-related circumstances, resulting in a net decrease of 5 stores to 494 stores during the period. The Store Operations Division maintained sales of ¥412 million, in line with the prior year. An increase in selling, general and administrative expenses to ¥204 million (from ¥195 million in the prior year) also contributed to the deterioration in profit/loss.

Key Products

Growth Drivers

• Increasing demand for large-item laundry (futons, blankets, etc.) driven by growing health consciousness
• Expanding needs for time-saving housework amid the rise in single-person households and increasing female labor participation
• Promoting monetization of the sponsor advertising business through growth in WASH House App users
• Boosting profitability of existing stores through FC store renewals (5 stores renewed in Q1)
• Building a global foundation through continued store expansion in China and consideration of potential expansion into the Thai market
• Strengthening the "self-laundry business as a platform" through domestic and overseas sales of original washers and dryers

Risks

• Weather risk: a structural vulnerability whereby a decrease in non-sunny days (i.e., excessive sunny weather) directly reduces store sales
• Sluggish new FC store openings: only 1 new store opened in Q1, delaying the accumulation of stock revenue
• Store closure risk due to FC owner circumstances: 4 stores closed in Q1 due to owner-related circumstances, resulting in a net decrease in FC stores
• Increase in selling, general and administrative expenses: rose to ¥204 million in Q1 versus the prior year, exceeding gross profit of ¥134 million and widening the operating loss
• Declining profitability of directly-operated stores: profit pressure from the continued existence of loss-making stores
• Difficulty securing personnel: a shortage of human resources needed for new store openings and overseas expansion is one factor behind the shortfall in store opening plans