TOHO LAMAC CO., LTD.

Business Details

Engages in shoe planning and sales (wholesale) as well as retail via EC sites. Comprises three categories: Women's Shoes, Men's Shoes, and Rubber Shoes, Sneakers & Others. Major customers are Chiyoda Co., Ltd. (24.9% of net sales) and Shimamura Co., Ltd. (23.5% of net sales). Operates a product portfolio combining private brands, licensed brands, and ODM products. Net sales for FY2025 (ending December 2025) were ¥4,453 million, accounting for 97.9% of consolidated net sales, making it the core segment.

Recent Overview

Mainstay Women's and Men's Shoes struggled, but strong sneaker sales improved operating loss year on year

In Q1 of FY2026 (ending December 2026) (December 21, 2025 to March 20, 2026), Shoes Business net sales were ¥1,106 million (down 2.2% year on year). Women's Shoes struggled, with units sold down 19.9% year on year and net sales of ¥501 million (down 13.0% year on year); Men's Shoes also struggled, with units sold down 18.3% year on year and net sales of ¥244 million (down 13.7% year on year). On the other hand, Rubber Shoes, Sneakers & Others grew sharply to ¥360 million (up 32.6% year on year) driven by increased sneaker orders. Cost reductions in selling, general and administrative expenses resulting from the unprofitable business restructuring implemented in the prior fiscal year contributed to results, and the operating loss improved to ¥19 million from ¥36 million in the same period of the prior year.

Key Products

Growth Drivers

• Increased orders through strengthened responsiveness to trend items such as sneakers, sports casual, and hands-free shoes
• Continued contribution from reductions in selling, general and administrative expenses resulting from the unprofitable business restructuring implemented in the prior fiscal year
• Improved profitability through raising the proportion of in-house planned products centered on original brands (B.C.COMPANY, LEON, CORE CUSHION, etc.)
• Growth in business shoe ODM products and stable demand for standard products in the Men's Shoes category
• Maintenance of long-term business relationships with major customers (Chiyoda and Shimamura), which together account for approximately 48% of net sales
• Rise in average selling prices due to pricing policy revisions (Women's Shoes up 8.5% year on year, Men's Shoes up 5.6% year on year)

Risks

• Sluggish demand across the entire shoe distribution industry due to continued frugality amid rising consumer prices
• Risk of continued significant decline in units sold for Women's Shoes and Men's Shoes (down 19.9% and 18.3% year on year, respectively)
• Declining competitiveness and prolonged struggles of licensed brands (a.v.v, la farfa, Ken collection, etc.)
• Pressure on gross margin from rising cost of sales due to the weak yen trend
• Difficulty selling products other than trend items such as sneakers, sports casual, and hands-free shoes
• Risk of declining profitability of inventory (possibility of additional valuation losses due to declines in net realizable value)
• Need for significant profitability improvement from Q2 onward to achieve the full-year earnings forecast (net sales of ¥5,104 million, operating income of ¥88 million)