Copa Corporation Inc.
7689・Growth Market・Wholesale Trade
Live Demonstration Sales-Related Business (Copa Corporation single segment)
Sells daily necessities through multiple channels—TV shopping, EC, and physical stores—centered on live demonstration sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (cumulative first quarter) | ¥402 million | ¥386 million | ↑ |
| Operating loss (cumulative first quarter) | -¥26 million | -¥94 million | ↑ |
| Ordinary loss (cumulative first quarter) | -¥21 million | -¥93 million | ↑ |
| Net loss for the quarter (cumulative first quarter) | -¥21 million | -¥93 million | ↑ |
| Gross profit (cumulative first quarter) | ¥176 million | ¥147 million | ↑ |
| Selling, general and administrative expenses (cumulative first quarter) | ¥202 million | ¥241 million | ↓ |
| Total assets | ¥1,214 million | ¥1,152 million | ↑ |
| Net assets | ¥745 million | ¥767 million | ↓ |
| Equity ratio | 61.4% | 66.6% | ↓ |
| Net loss per share for the quarter | -¥7.38 | -¥31.71 | ↑ |
| Full-year sales forecast | ¥1,802 million | ¥1,780 million | ↑ |
| Full-year operating profit forecast | ¥1 million | -¥271 million | ↑ |
Business Details
Guided by the philosophy of "selling kindness and inspiration, and bringing smiles to people," the company's strength lies in "live demonstration sales," in which specialized demonstration salespeople directly appeal to consumers by showcasing the practical value of products. The business operates across six channels: TV Shopping Channel, Vendor Sales Channel, Internet Shopping Channel, Sales Promotion, Demo Kau (directly-operated stores), and Wakutan (proprietary EC site). Through its proprietary "3D Marketing Sales Strategy," the company generates demand via TV shopping that then spreads to other channels. Its core product lineup consists mainly of private-brand and exclusive-distribution products, including the peeling towel "Gomupon Series," the cleaning cloth "Palsui Cloth," and the folding umbrella "Tsukumo Umbrella Series."
Recent Overview
First-quarter sales rose 4.1%, and the operating loss improved by ¥68 million year on year, moving toward profitability
Sales for the first quarter of FY2027 (ending February 2027) (March–May 2026) were ¥402 million (up 4.1% year on year). Internet Shopping Channel sales rose 28.3% year on year and Sales Promotion sales rose 58.1%, driving growth, while TV Shopping Channel sales declined 8.9% due to a shift in the delivery timing of core products. Thanks to a reduction in cost of sales (from ¥239 million to ¥226 million) and a significant reduction in SG&A expenses (from ¥241 million to ¥202 million), the operating loss improved substantially from ¥94 million in the same period of the prior year to ¥26 million. The company newly raised ¥100 million in short-term borrowings to secure liquidity. Material events related to going concern assumptions continue to exist, but the company has determined that no material uncertainty currently exists. The full-year earnings forecast (sales of ¥1,802 million, operating profit of ¥1 million) remains unchanged.
Key Products
Growth Drivers
- Increasing the number of demonstration salespeople and expanding the frequency of demonstrations to boost Vendor Sales and Sales Promotion revenue (Sales Promotion achieved a 58.1% year-on-year increase in the first quarter)
- Improving customer acquisition and conversion rates through UI/UX improvements to product pages and optimized digital marketing in the Internet Shopping Channel (up 28.3% year on year in the first quarter)
- Improving cost efficiency through optimized advertising expenses and enhanced social media outreach (SG&A expenses reduced by approximately ¥39 million year on year)
- Continued demand capture for core private-brand products such as the "Gomupon Series," "Tsukumo Umbrella Series," and "Palsui Cloth"
- Building up direct sales revenue through strong sales of new products (such as the Ultra-Low-Resilience Insole Nu:ma) at Demo Kau directly-operated stores
- Improving gross profit margin through fixed cost reductions and lower cost of sales (from 38.2% in the prior-year period to 43.8% in the current period)
Risks
- Existence of a material event related to going concern assumptions due to operating losses and net losses recorded for five consecutive fiscal years (four consecutive years through the end of the prior fiscal year); the company currently judges there to be no material uncertainty
- Risk of fluctuations in delivery timing of core products in the TV Shopping Channel (first-quarter sales declined 8.9% year on year due to deferral to the following quarter)
- Risk of increased inventory (inventory rose to ¥498 million at the end of the first quarter due to procurement of summer merchandise)
- Increase in interest-bearing debt due to new short-term borrowings of ¥100 million, requiring careful cash flow management
- Sluggish sales in the Wakutan channel due to the continued suspension of the crowdfunding service "Wakutan" (down 23.2% year on year in the first quarter)
- Rising procurement costs due to yen depreciation and soaring raw material prices, combined with reduced purchasing appetite amid persistent consumer thrift consciousness
- High dependence on human capital in the form of demonstration salespeople, creating a risk that delays in recruitment and training directly affect business performance
Last updated: May 29, 2026