Haruyama Holdings Inc.

Business Details

Through consolidated subsidiaries such as Haruyama Shoji and Moriwan, the group sells suits, formal wear, office casual wear, dress shirts, and related apparel and accessories through domestic stores and e-commerce. The company itself is a holding company responsible for group strategy planning, overall management, and real estate leasing. Its reportable segment is solely the clothing retail business, and under the management vision of "becoming a store needed by the local community," the group is promoting expansion into functional office casual wear and health-related products and services. The total number of stores at the end of FY2026 (ending March 2026) was 363.

Recent Overview

FY2026 (ending March 2026) fell into losses at the operating, ordinary, and net income levels, hit hard by impairment losses and increased SG&A expenses

In FY2026 (ending March 2026), net sales were ¥35,212 million (down 2.6% year on year), and the company recorded an operating loss of ¥658 million (versus operating income of ¥626 million in the prior year), an ordinary loss of ¥297 million, and a net loss attributable to owners of parent of ¥1,094 million, falling into losses at all stages. Existing-store customer count remained weak at 94.6% year on year, causing gross profit to decrease 4.1% year on year, while SG&A expenses expanded to ¥21,242 million (up 1.9% year on year) due to a change in accounting estimates for asset retirement obligations (a ¥112 million profit impact) and increased marketing investment. In addition, the company recorded an impairment loss of ¥356 million on 50 stores and system failure response costs of ¥43 million as extraordinary losses. For FY2027 (ending March 2027), the company expects a recovery with net sales of ¥35,300 million (up 0.2% year on year), operating income of ¥150 million, ordinary income of ¥500 million, and net income of ¥100 million.

Key Products

Growth Drivers

• Seasonality with sales concentrated in the fourth quarter (January to March), a tendency for sales to be higher in the final quarter compared to other quarters
• Increase in existing-store average purchase price (102.6% year on year for full-year FY2026 (ending March 2026)), improving average spend per customer
• Development of new customer segments through expanded functional office casual and women's product offerings
• Diversification of revenue sources through new formats and products such as Fatigue-Recovery Wear "YOKUNERU" and Health Clothing Specialty Store "DRUG WEAR"
• Strengthened e-commerce development (OMO initiatives such as in-store pickup services and in-store payment services for online orders)
• Improved brand awareness in the business wear market through integrated multichannel marketing initiatives
• Improved profitability through more efficient store operations (store openings/closures and renovations)
• Support to non-operating income from increased rent income received (¥653 million in FY2026 (ending March 2026), up 13.7% year on year)

Risks

• Continued downward pressure on sales due to ongoing weakness in existing-store customer count (94.6% year on year for full-year FY2026 (ending March 2026))
• Continued increase in product costs due to inflation and exchange rate fluctuations (write-down of inventory book value due to lower profitability: ¥186 million)
• Stagnation in personal consumption due to strengthened consumer thrift amid rising prices of daily necessities
• Persistently high SG&A expenses due to marketing investment, store openings/closures, and renovations (¥21,242 million in FY2026 (ending March 2026))
• Continued impairment losses due to declining profitability of operating stores (50 stores, ¥356 million in FY2026 (ending March 2026))
• Impact on profit/loss from changes in accounting estimates, such as revisions to asset retirement obligation estimates (a profit-decreasing impact of ¥112 million in FY2026 (ending March 2026))
• Downside economic risk and geopolitical risk stemming from U.S. trade policy
• Increased financial burden due to a substantial increase in short-term borrowings (¥5,200 million at the end of FY2026 (ending March 2026), up ¥2,700 million from the previous year-end)
• Liquidity risk due to a decrease in cash and cash equivalents (¥8,317 million at the end of FY2026 (ending March 2026), down ¥2,233 million from the previous year-end)
• Risk of sudden expenses arising from events such as system failures (¥43 million recorded in FY2026 (ending March 2026))