MARUSHO HOTTA CO.,LTD.

Business Details

This segment wholesales Japanese Clothing (Tomesode, Houmongi, Furisode, Obi, etc.), Jewelry (Rings, Necklaces, etc.), and Kimono Accessories (Obiage, Obijime, Zori, etc.). It operates through two channels—the department store division and the specialty store division—with the strategic pillars being the promotion of a single-vendor system (dedicated sales floors) in department stores and initiatives such as new event planning and new product sales in specialty stores. The segment does not engage in production activities and employs a wholesale model specialized in planning and sales functions.'},

Recent Overview

Sales increased, but operating loss widened due to higher selling costs; losses continued for an 8th consecutive period

In the Kimono Business for FY2026 (ending March 2026), sales increased to ¥643 million (up 2.2% year on year). The department store division achieved sales exceeding the prior year through the promotion of a single-vendor system, but the increase in selling costs associated with this system squeezed profitability, resulting in higher sales but lower profit. The specialty store division saw results from initiatives such as new event planning and new product sales, but sales and profit declined due to the impact of a major bankruptcy in the prior period and a downturn at a major kimono chain store. As a result, the operating loss widened to ¥120 million (from ¥96 million in the prior period).

Key Products

Growth Drivers

• Expansion of sales floor space and sales growth through the promotion of a single-vendor system (dedicated sales floors) in the department store division
• Creation of profit opportunities through initiatives such as new event planning and new product sales in the specialty store division
• Strengthening of sales channels through expanded transactions with department stores and mass retailers
• Development of new demand through the establishment of a business model for reused yukata products

Risks

• Risk of bankruptcy among major mass retailers and specialty store chains (a major mass retailer's bankruptcy directly impacted the prior period)
• Profit pressure from increased selling expenses associated with the shift to single-vendor department store floors (the main cause of higher sales but lower profit in the current period as well)
• Risk of department stores changing business policies or closing sales floors
• Demand decline due to the long-term contraction of the kimono market and growing consumer thrift consciousness
• Rising procurement costs due to yen depreciation (in cases involving overseas-sourced products)
• Risk to business continuity amid company-wide profitability deterioration marked by 8 consecutive periods of operating losses