BuySell Technologies Co.,Ltd.

Business Details

A circular reuse model that buys kimono, brand-name goods, antiques, precious metals, etc. from general consumers through two channels—On-Site Home Buying Services (BuySell, Fukuchan, and Nikkodo) and Store-Based Buying (502 stores, including over 280 WAKABA franchise stores)—and sells them via toB Sales Channels (Inter-Dealer Auctions) and toC Sales Channels (Proprietary EC, EC Malls, etc.). From 1Q FY2026 (ending December 2026), the reportable segments were changed to three categories: "On-Site Home Buying," "Store-Based Buying," and "Other."

Recent Overview

1Q FY2026 (ending December 2026) achieved a significant beat with net sales up 37% and operating profit up 111%; full-year forecast revised upward

In 1Q FY2026 (ending December 2026) (January to March), net sales were ¥32,057 million (up 37.0% year on year) and operating profit was ¥5,123 million (up 111.4% year on year), significantly exceeding plan. On-Site Home Buying saw improved gross profit unit price due to higher repeat visit rates and increased antiques buying (segment profit up 137.6%), while Store-Based Buying saw improved gross profit unit price due to new store openings and strengthened repeat-customer initiatives (up 56.6%). Smooth sales of carried-over inventory from the end of the prior fiscal year also contributed. DelightZ Co., Ltd. (Kyushu-area "Kaitori Senmonten Yukichi") was made a subsidiary as of March 31 (goodwill of ¥2,004 million recorded). In response, the full-year earnings forecast was revised upward (net sales of ¥140,000 million, operating profit of ¥15,600 million), and the year-end dividend forecast was increased from ¥17.5 to ¥22.0 per share. Additionally, from 1Q FY2026 (ending December 2026), the segment classification was changed from a single segment to three segments (On-Site Home Buying, Store-Based Buying, and Other).

Key Products

Growth Drivers

• Continuous improvement in gross profit unit price per visit through strengthened strategic repeat visits in On-Site Home Buying, boosting repeat visit rates, and increased antiques buying through group synergies
• Improved gross profit unit price per appraisal through expansion of store count (502 stores) via new store openings and strengthened repeat-customer acquisition initiatives
• Geographic expansion of buying channels and creation of group synergies through the subsidiarization and full subsidiarization of DelightZ (Kyushu area)
• Efficiency gains in management resources and expanded synergies through brand integration via the intra-group merger (Rexto HD, Musubi, etc.) implemented in January 2026
• Boost to gross profit from the planned sale of carried-over inventory from the end of the prior fiscal year
• Expansion of corporate sales in the Other segment, including growth in Timeless's corporate buying business
• Strong performance incentives for management and employees through paid stock options (exercise conditions: operating profit exceeding ¥20.0 billion in FY2027 (ending December 2027), exceeding ¥27.0 billion in FY2028-FY2029 (ending December 2028-2029))

Risks

• Increase in goodwill balance (¥16,784 million) due to aggressive promotion of M&A, along with impairment risk and PMI failure risk
• Buildup of inventory (¥14,425 million) due to increased purchasing volume, along with inventory valuation and obsolescence risk
• Interest rate rise risk and financial leverage risk associated with long-term borrowings (¥18,489 million) and short-term borrowings (¥1,827 million)
• Risk of margin compression due to increased fixed costs such as personnel expenses, advertising expenses, and rent associated with business scale expansion (SG&A expenses of ¥12,952 million, up 28.7% year on year)
• Risk of customer attrition and brand recognition decline associated with group organizational restructuring and store brand integration (implemented January 2026)
• Risk of revenue concentration among major customers (dependence on top customers)
• Risk to talent retention and motivation maintenance from failure to meet paid stock option exercise conditions (e.g., operating profit exceeding ¥20.0 billion in FY2027 (ending December 2027))
• Amortization burden and integration risk from additional goodwill (total of ¥2,382 million) associated with the full subsidiarization of DelightZ (share exchange on April 7, 2026)