WA, Inc.
7683・Prime Market・Retail Trade
Business
Double A Inc. is a fashion company operating two segments: the Women's Footwear Planning & Sales Business (approximately 90% of net sales) and the Women's Apparel Planning & Sales Business. It owns footwear brands such as ORiental TRaffic (ORTR), WA ORiental TRaffic, Himiko, and NICAL, as well as apparel brands MISCH MASCH and 31 Sons de mode. In addition to 175 domestic physical stores and 29 EC stores, the company operates 37 overseas physical stores in Hong Kong, Macau, and Taiwan. It employs a vertically integrated business model that handles everything from product planning to production management and sales, targeting women in their 20s to 50s as its primary customer base. The company listed on the TSE Mothers market in 2019 and transitioned to the TSE Prime Market in November 2024.
Business Model
Under an integrated system in which product planning staff also handle in-store customer service and factory visits, consumer needs are directly linked to product development. Manufacturing is outsourced to partner factories to keep fixed costs down, while sales are conducted through a combination of directly-operated stores, in-house EC, and major EC malls. Demand forecasting is enhanced through pre-order sales to optimize inventory, and consignment sales to other companies' brands are also used to acquire customers outside existing channels. Since its founding, the company has made cost reduction through labor-saving improvements to the existing supply chain, thereby lowering intermediary margins, a source of competitive advantage.
Company Strengths
Product planning staff also work as sales staff providing in-store customer service, with the same personnel touring and guiding production factories. By directly reflecting consumer feedback in product development, the company is able to offer original products with high customer satisfaction. Continuous quality inspections by third-party organizations are also conducted to ensure durability and safety.
In addition to footwear brands such as ORiental TRaffic (ORTR), Himiko, and NICAL, the company operates apparel brands MISCH MASCH and 31 Sons de mode. It operates a total of 229 stores (group total), consisting of 175 domestic physical stores, 29 EC stores, 37 overseas physical stores, and 5 overseas EC stores, achieving stable customer traffic through store openings in station buildings, large shopping centers, and department stores.
As of the end of FY January 2025, the company held net assets of ¥10,749 million and cash and cash equivalents of ¥2,529 million. While securing overdraft agreements totaling ¥1,900 million with multiple financial institutions (unused borrowing balance of ¥1,900 million), the company operates its business without reliance on interest-bearing debt, maintaining a high level of financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, from ¥15,702 million in FY2022 to ¥23,327 million in FY2026, but turned negative in 1Q FY2027 (ending January 2027) at ¥4,564 million (down 4.6% year on year). Operating profit peaked at ¥1,763 million in FY2024, then declined for two consecutive fiscal years to ¥1,671 million in FY2025 and ¥1,066 million in FY2026, and 1Q FY2027 (ending January 2027) worsened sharply to an operating loss of ¥457 million. The main causes were an increase in advertising expenses associated with TV commercial broadcasts, an expansion in SG&A expenses driven by rising personnel and logistics costs (up 12.8% year on year), and the overlap with a temporary revenue decline resulting from a review of in-store sales promotion measures. As an external factor, a foreign exchange gain of ¥103 million arose in non-operating income, which somewhat mitigated the ordinary loss to ¥353 million. The full-year earnings forecast (revenue of ¥24,661 million, operating profit of ¥1,504 million) remains unchanged, but given the scale of the 1Q loss, the company is now extremely dependent on performance in the second half.
Growth Strategy
Multi-axis growth through brand awareness expansion, online enhancement, and apparel profitability improvement
Awareness of the sneaker brand is being expanded through TV commercials for the sports brand ORiental TRaffic (ORTR), linking this to strong performance in online sales. Online sales trended favorably in the first quarter of FY2027 (ending January 2027), confirming that the effects of advertising investment are partially materializing. However, increased advertising expenses were the primary cause of the operating loss, and verifying the return on this investment remains a future challenge.
The company aims to improve the quality of its store portfolio through the closure of unprofitable and low-efficiency stores and the renovation/renewal of flagship stores. In the first quarter of FY2027 (ending January 2027), physical store sales temporarily declined due to the closure of some stores and a review of sales promotion measures, but this is positioned as a structural reform aimed at improving medium- to long-term profitability.
Online sales of 31 Sons de mode, whose business was acquired in FY2025 (ended January 2025), have trended favorably, and net sales in the Women's Apparel segment reached ¥544 million, up 12.2% year on year. The segment loss improved to ¥44 million from a loss of ¥55 million in the same period of the previous year, but store renovation costs, increased personnel expenses, and higher logistics costs are hindering profitability, and the timing of a return to profit remains uncertain.
In addition to physical stores, the expansion of online sales is positioned as a pillar of the growth strategy, with EC enhancement being promoted for each brand. In the first quarter of FY2027 (ending January 2027), online sales trended favorably in both the Women's Footwear and Women's Apparel segments, partially offsetting the temporary decline in physical store sales.
Last updated: July 17, 2026