YAMATOINTERNATIONALINC.

Business Details

An apparel business centered on casual wear, engaged in the manufacture and sale of cut-and-sewn knitwear, woven shirts, flat-knit sweaters, outerwear, bottoms, small accessories, and other items. Operations are built around the core brand "Crocodile," deployed across three channels: GMS, EC, and directly-operated stores. The subsidiary Yamato Fashion Service Co., Ltd. handles logistics operations. The business targets both men's and women's markets and also holds proprietary trademark licensed brands (Penfield, Lightning Bolt). Sales for the cumulative nine months of the third quarter of FY2026 (ending August 2026) were ¥15,126 million, accounting for approximately 98.6% of total Group sales of ¥15,345 million.

Recent Overview

Sales increased 1.2% year on year, but operating profit decreased 6.6% year on year due to a decline in gross profit margin.

For the cumulative nine months of the third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), sales in the Textile Products Manufacturing and Sales segment were ¥15,126 million (up 1.2% year on year). Meanwhile, gross profit margin declined 1.6 percentage points year on year to 55.7%, and segment operating profit decreased to ¥478 million (versus ¥512 million in the same period prior year). The two strategic line brands are growing steadily, and the company is promoting strategic pricing and building supply capabilities. There is no change to the full-year earnings forecast (sales of ¥20,500 million, operating profit of ¥180 million), which is premised on a recovery in the fourth quarter.

Key Products

Growth Drivers

• Advancement of the next-generation potential customer acquisition strategy based on the medium-term vision "Yamato 2026"
• Steady growth and sales floor space expansion of the strategic lines (Crocodile Code and Switch Motion Crocodile)
• Expansion of the EC business based on the foundation of over 1.16 million Crocodile app members
• Development of a product lineup that remains attractive to consumers even amid inflation, through strategic pricing and supply chain construction
• Productivity improvements and enhanced EC capability through automation and labor-saving investments (automatic sorters, automatic case sealers, camera authentication systems) at the logistics subsidiary

Risks

• Risk of changes in clothing purchasing motivation and opportunities due to climate change (normalization of extreme heat and prolonged hot weather)
• Heightened consumer defensive spending awareness and decline in personal consumption due to price increases
• Risk of shrinking sales channels due to accelerated structural reform and increased store closures among major business partners (GMS)
• Occurrence of inventory shortages in key items and lost sales opportunities due to misjudged procurement planning
• Risk of rising procurement costs and declining gross margin due to yen depreciation and geopolitical risk
• Decline in gross margin due to inventory clearance during sale periods (a structure that offsets improvements in gross margin during regular-price periods)