KONAKA CO.,LTD.
7494・Standard Market・Retail Trade
Business
Konaka Co., Ltd. originated as a menswear specialty store founded in 1952, and currently operates a Fashion Business centered on business-wear brands such as "KONAKA・FUTATA," "SUIT SELECT," and "DIFFERENCE," with the Samantha Thavasa Group (bags, jewelry, apparel) under its umbrella. In addition, through Konaka Enterprise, the company operates a Food Service Business ("Katsuya" etc.) and an Education Business (English education such as "Kids Duo International" and Therapeutic Education Classrooms). As of the end of FY2025 (ending September 2025), the group operated 607 stores in total, with its main customer base centered on business people but spanning a wide range of age groups. The company transitioned to the Prime Market in 2022 and to the Standard Market in 2023.
Business Model
In the core Fashion Business, the company employs an SPA (Specialty store retailer of Private label Apparel) model encompassing in-house planning, manufacturing, and sales, securing average customer spend through a wide product lineup ranging from suits and business wear to fashion accessories. The Food Service Business generates stable earnings through franchise operations such as Katsuya. The Education Business builds up continuous revenue through a monthly-tuition model at directly-operated classrooms. Of the group's total sales of ¥55,487 million, the Fashion Business accounts for 94.3%, bearing the majority of the group's revenue structure.
Company Strengths
The company operates diverse business formats: business wear (KONAKA・FUTATA, SUIT SELECT), custom order (DIFFERENCE), bags and jewelry (Samantha Thavasa Group), restaurants (Katsuya), and English/Therapeutic Education Classroom (Kids Duo). Even as the Fashion Business struggled, the Food Service Business (up 7.8% year on year) and Education Business (up 6.1% year on year) maintained a revenue growth trend, underpinning overall group earnings.
In FY2025 (ending September 2025), the company closed 44 stores (including some within Samantha Thavasa Group), reducing unprofitable assets. It realized ¥982 million in proceeds from the sale of fixed assets and ¥553 million in recovered lease/guarantee deposits, turning operating cash flow into an inflow of ¥1,216 million (compared with an outflow of ¥228 million in the prior period). Operating loss also narrowed from ¥1,348 million in the prior period to ¥766 million, showing that the effects of structural reforms are beginning to appear in the numbers.
With a history spanning over 70 years since its founding, brands such as "KONAKA・FUTATA" and "SUIT SELECT" are recognized nationwide. As of the end of FY2025 (ending September 2025), the company maintained a store network of 411 stores on a standalone basis and 607 stores group-wide. It also holds exclusive license brands such as "DONATO VINCI" and "VINCI UOMO," with contracts continuing through August 2028.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥58,584 million in FY2021 and has declined for five consecutive periods, reaching ¥30,255 million in the first half of FY2026 (ending March 2026) (down 6.3% year on year). The main factor behind the revenue decline was store closures (78 stores in the first half). Operating profit came to ¥940 million (down 40.6% year on year), reflecting a deterioration in core business earnings. On the other hand, the recording of extraordinary gains—¥2,626 million in gains on sale of investment securities and ¥672 million in gains on sale of fixed assets—led to a substantial increase in interim net profit to ¥3,198 million (up 96.2% year on year). As external factors, the impact of price inflation on consumer sentiment, as well as uncertainty over energy prices and foreign exchange rates stemming from the situation in the Middle East, continue to weigh on the business environment. The full-year forecast remains unchanged, with revenue of ¥55,240 million (down 0.4% year on year), operating profit of ¥423 million, and net profit of ¥1,585 million.
Growth Strategy
Optimizing the business portfolio, expanding the next-generation made-to-order business format, and improving profitability through DX promotion
Following the opening of the first store in Kita-Kanto in December 2025 for this next-generation made-to-order suit brand utilizing AI and digital technology, the number of stores has been steadily expanded. The company aims to capture regions and customer segments that its existing brands have not reached, thereby expanding the earnings base of its made-to-order specialty brands.
The company is proceeding with store withdrawals upon contract expiration and consolidation of nearby stores to restructure its store network. In the interim period of FY2026 (ending September 2026), 78 stores were closed (with 13 new store openings). At Samantha Thavasa Group, withdrawal from unprofitable stores and cost reductions are being promoted with a focus on improving profitability, contributing to a reduction in SG&A expenses (down ¥594 million year on year).
Cash on hand was strengthened through the sale of investment securities (proceeds of ¥2,809 million) and tangible fixed assets (proceeds of ¥1,254 million). Short-term borrowings were reduced by a net ¥3,323 million, reducing the risk of breaching financial covenants and securing liquidity. The equity ratio improved to 43.3% (from 39.3% at the end of the previous fiscal year).
In the Food Service Business, sales of ¥1,100 million (up 1.6% year on year) were secured through various fairs and limited-time menu offerings while promoting store-level DX. The Education Business grew steadily to sales of ¥528 million (up 6.7% year on year) through the stabilization of the therapeutic education business. These businesses are positioned as stable sources of earnings within the group.
Last updated: July 17, 2026