WORKMAN CO.,LTD.

Business Details

A single segment operating a retail business for work clothing, work-related goods, outdoor gear, sportswear, and casual wear, based on a franchise system. The main customer base ranges widely from professional craftsmen to general consumers, comprising 1,006 FC stores (Franchisee A Contract, including 6 corporate FC stores) and 88 directly managed stores. Royalty income from franchisees and sales from product supply to directly managed stores and franchisees form the pillars of revenue. Improving the PB (Private Brand) products ratio and expanding the customer base are core elements of the growth strategy.

Recent Overview

In FY2026 (ending March 2026), double-digit growth was achieved across all indicators, with chain-wide sales at all stores up 14.3% and operating income up 21.7%

In FY2026 (ending March 2026), operating total revenue reached ¥160,852 million (up 17.5% year on year) and operating income reached ¥29,676 million (up 21.7% year on year), marking substantial growth in both revenue and profit. Chain-wide sales at all stores were ¥209,234 million (up 14.3% year on year), with existing store sales year on year at a high level of +9.0%. A total of 48 new stores were opened, comprising 38 WORKMAN Colors stores and 10 WORKMAN Plus stores, expanding the total to 1,094 stores by fiscal year-end. Recovery wear grew into a hit product, and the PB ratio rose to 71.9% (up 3.4 points year on year). Sales at directly managed stores grew strongly, up 41.7% year on year. For FY2027 (ending March 2027), operating total revenue is forecast at ¥183,376 million (up 14.0% year on year) and operating income at ¥32,112 million (up 8.2% year on year).

Key Products

Growth Drivers

• Accelerated rollout of WORKMAN Colors and strengthened store openings in shopping centers through the introduction of the corporate franchise system, acquiring new customer segments
• Continued improvement in the PB products ratio (71.9%, up 3.4pt year on year), improving profitability and strengthening price competitiveness
• Creation of hit products such as recovery wear and expansion of the "Comfortable Everyday Wear" category, driving penetration into the general consumer segment
• Improved brand recognition and revitalization of existing stores through active promotion, including smartphone app development and TV commercial broadcasts
• Strengthened mass-production systems for core products and improved price competitiveness and profitability through the "mass-production product policy" (strategy for FY2027 ending March 2027)
• Overall chain-wide uplift driven by strong growth at directly managed stores (including SC stores), up 41.7% year on year

Risks

• Weakening personal consumption and declining consumer sentiment due to continued price increases
• Intensifying competition across business format boundaries (competition with general apparel retailers, home centers, etc.)
• Risk of fluctuations in demand and sales timing for seasonal products due to climate change (mild winters, extreme heat, etc.)
• Inventory risk associated with increased handling of PB products (inventory assets of ¥29,770 million, up 23.6% year on year) and rising logistics costs
• Risk of rising procurement costs due to uncertainty in international conditions such as U.S. trade policy and sharp exchange rate fluctuations (yen depreciation, rising raw material costs)
• Concerns over decreased corporate demand due to the impact of high oil prices
• Structural decline in construction skilled workers (professional craftsmen) due to Japan's declining and aging population