NISHIMATSUYA CHAIN Co., Ltd.
7545・Prime Market・Retail Trade
Business
Nishimatsuya Chain Co., Ltd. is a specialty chain store for baby and children's daily necessities, founded in 1956. Its core products include children's apparel (ELFINDOLL, etc.), childcare and clothing accessories (SmartAngel, etc.), and baby/maternity apparel, with 1,145 stores deployed across all 47 prefectures nationwide as of the end of February 2025. Its primary customer base consists of households with children ranging from infants to upper elementary school age. Under its management philosophy of "providing the lowest prices and greatest convenience anywhere," the company operates standardized, large-format suburban stores nationwide. In addition to physical stores, it has been advancing multi-channel expansion through the Nishimatsuya Official Online Store, launched in November 2021, and sales targeting overseas markets.
Business Model
Procurement is conducted through global sourcing, achieving low-cost purchasing from both domestic and overseas sources, including ASEAN countries, while differentiation is pursued through the two private-brand lines, ELFINDOLL and SmartAngel. By standardizing store layouts, shelf allocation, and operations, the company maximizes scale merit and achieves low-cost operations. In the 69th fiscal period, net sales were ¥185,974 million, with a gross margin of 34.4% and an operating margin of 6.6%. The company's basic policy is debt-free management, funding working capital and investment capital through operating cash flow.
Company Strengths
The company continued opening new stores even after reaching 1,000 stores in December 2018, expanding to 1,145 stores as of the end of February 2025. In FY69 (the 69th fiscal period), it opened 55 new stores (capital expenditure of ¥3,794 million) and closed 19 unprofitable stores. It has established itself as a national chain covering all prefectures from Hokkaido to Okinawa.
The company operates two major private brands: the apparel brand ELFINDOLL and the childcare products brand SmartAngel. It pursues low prices, safety and security, and the enjoyment of use through product development leveraging personnel with backgrounds in other industries such as manufacturing and trading companies. In FY69, sales of private-brand products continued to grow, and together with the strong performance of products for upper elementary school-age children, this contributed to a 5.0% year-on-year increase in net sales.
At the end of FY69, net assets stood at ¥91,269 million (up 7.4% year on year), and cash and cash equivalents stood at ¥67,472 million. Cash flow from operating activities secured an inflow of ¥9,133 million. The company continues to fund store openings and investments with its own capital without relying on interest-bearing debt, maintaining a high level of financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years grew steadily, from ¥163,016 million (FY2022) to ¥193,365 million (FY2026). Operating profit, on the other hand, peaked at ¥12,259 million in FY2022 and declined to ¥9,941 million in FY2026, making improving profitability a key challenge. In Q1 of FY2027 (ending February 2027) (February 21, 2026 to May 20, 2026), the company posted revenue of ¥54,554 million, operating profit of ¥5,321 million, ordinary profit of ¥5,471 million, and quarterly net profit attributable to owners of the parent of ¥3,768 million. Year-on-year comparison is not available due to the timing of the start of consolidated financial statement preparation, but progress against the full-year forecast (revenue of ¥205,000 million, operating profit of ¥12,540 million) was favorable, with Q1 progress rates of 26.6% for revenue and 42.4% for operating profit. Amid a continuing external environment of price increases, high crude oil prices, and intensifying competition across business formats, both apparel and general merchandise remained strong, putting the company on a recovery trajectory from the profit decline seen in FY2026.
Growth Strategy
Aiming for ¥250,000 million in sales through four pillars: accelerated store openings in the Greater Tokyo area, strengthening of private brands, EC expansion, and overseas development
Leveraging a standardized store format, the company is accelerating store openings in densely populated areas. In Q1 of FY2027 (ending February 2027) alone, 12 new stores were opened (10 stores closed), bringing the total store count to 1,183 by period end. The net increase in store count on a full-year basis is the primary driver of revenue scale expansion.
Sales growth in apparel for upper elementary school-age children continues, expanding the customer base beyond the traditional infant and lower-grade elementary school segments. The company aims to improve gross margin through an increased PB ratio, while maintaining strong performance in the sundries category across a wide range of items including foodstuffs, hygiene products, and large-sized goods.
Sales at the official online store have been performing well, driven by an increase in new members. The company aims to enhance synergies with physical stores while raising the proportion of EC sales. Strengthening digital channels contributes to expanding customer touchpoints amid the declining birthrate environment.
The company is advancing full-scale overseas chain development through its Taiwan subsidiary and expanding overseas wholesale business partners. This overseas market development is being pursued as a response to the long-term risk of domestic market contraction due to the declining birthrate, though the contribution to earnings remains limited at this stage.
The joint shipping center for Greater Tokyo area business partners began operations in October 2025, and the effect of reduced logistics costs is beginning to materialize. Together with the expansion of the superintendent system and the support part-timer system, the company aims to maintain a cost structure capable of absorbing the increase in fixed costs associated with new store openings.
Last updated: July 17, 2026