ENVALITH
株式会社ナガホリ logo

NAGAHORI CORPORATION

8139・Standard Market・Wholesale Trade

Official website
株式会社ナガホリ logo
NAGAHORI CORPORATION8139

Business

Nagahori Co., Ltd. is a jewelry-focused group handling everything from manufacturing to wholesale and retail of jewelry products. The group consists of the company and six consolidated subsidiaries (Soma Co., Ltd., SJ Jewelry Co., Ltd., Nagahori Retail Co., Ltd., Nakaniwa Watch Shop Co., Ltd., Sho Co., Ltd., and Nagahori (Hong Kong) Limited). It has manufacturing capabilities through its own factory "Atelier de Mobara" in Mobara City, Chiba Prefecture, and through Soma Co., Ltd., and sells through diverse channels including department stores, shopping malls, directly-operated flagship stores, wholesale, and OEM. Its main customers are domestic consumers, centered on the affluent segment, and it is nurturing three luxury brands: NADIA, DAVID MORRIS, and SCAVIA. It also holds the Building Leasing Business and Solar Power Generation Business, but the Jewelry Business accounts for over 99% of net sales.

Business Model

Products are manufactured in-house through group manufacturing (own factories and Soma Corporation), and revenue is diversified by developing retail channels such as department stores and shopping malls alongside wholesale and OEM channels in parallel. This is a structure in which an improved in-house production ratio directly leads to improved gross margins, and production value for FY2026 (ending March 2026) expanded sharply to ¥7,773 million (166.0% year-on-year). The company aims to improve both sales and profit margins simultaneously by combining high-unit-price sales through proprietary events and customer events targeting affluent customers with the expansion of its product lineup through the use of brand licensing.

Company Strengths

The company possesses manufacturing capabilities through its own factory "Atelier de Mobara" and consolidated subsidiary Soma Co., Ltd. Production output for FY2026 (ending March 2026) reached ¥7,773 million (up 166.0% year on year). The expansion of in-house manufacturing within the group has led to an increase in the in-house production ratio for products sold, creating a structure capable of strengthening profitability while reducing dependence on external procurement.

The company maintains multi-layered channels including department stores (Sapporo, Tokyo, Osaka, etc.), shopping malls, fashion buildings, GMS, directly-operated flagship stores (Maison de Nadia and SCAVIA flagship store), and wholesale/OEM. In September 2025, the company made Sho Co., Ltd. a subsidiary, acquiring a Sapporo department store channel, demonstrating a track record of expanding its sales network through M&A.

The company is cultivating three brands: its in-house brand NADIA, the prestigious Italian high jewelry brand SCAVIA, and the British luxury brand DAVID MORRIS (Japan exclusive distributorship agreement concluded in September 2024, with the first store opened at Takashimaya Osaka in March 2025). The exclusive brand handling rights, which are difficult for competitors to replicate in the short term, support the company's appeal to affluent customers.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved record-level results with net sales of ¥29,380 million (up 28.3% year on year), operating profit of ¥1,722 million (up 138.3%), and profit attributable to owners of parent of ¥1,100 million (up 170.9%). However, the full-year forecast for FY2027 (ending March 2027) anticipates a significant decline in profits, with net sales of ¥27,500 million (down 6.4% year on year), operating profit of ¥1,300 million (down 24.5%), and net profit of ¥600 million (down 45.5%), raising concerns about the fragility of the earnings base once the external factor of surging gold prices fades.

At the end of FY2026 (ending March 2026), short-term borrowings stood at ¥13,310 million (versus ¥10,170 million at the previous fiscal year-end), an increase of ¥3,140 million, while cash flow from financing activities showed an inflow of ¥2,758 million. The equity ratio declined to 45.4% (from 49.5% in the previous period), worsening for the fourth consecutive period. Operating cash flow was negative for the fourth consecutive period (an outflow of ¥968 million), with an increase in inventories (¥2,248 million) straining cash resources. Amid a continued funding structure dependent on interest-bearing debt, rising interest expenses (¥173 million, versus ¥114 million in the previous period) amid rising interest rates are also weighing on earnings.

In response to rapid, large-scale share accumulation by Re: Generation Co., Ltd. and several other shareholders, the company recorded advisory fees of ¥56 million as an extraordinary loss in FY2026 (ending March 2026), following ¥170 million recorded in the previous period. Combined costs over the two periods total ¥226 million, and the dispersion of management resources and instability in the shareholder composition continue to pose governance risks. Developments regarding takeover defense measures require continued monitoring.

Growth Strategy

Aiming for sustainable growth under 'Beyond Growth' by strengthening focus on affluent customers, overseas markets, and in-house manufacturing

In FY2026 (ending March 2026), the company made Sho Co., Ltd. (Sapporo department store channel) a subsidiary, expanding the scope of consolidation. This strengthened geographic coverage of the department store affluent-customer channel and contributed to the expansion of the group's overall sales scale. The company plans to continue expanding its sales network through selective M&A going forward.

In response to increasing demand for Bullion Products amid soaring gold prices, the company is increasing in-house manufacturing within the group to internalize manufacturing margins. Based on the medium-term management plan 'Beyond Growth', the company aims to raise the in-house manufacturing ratio of products sold by the Nagahori Group, thereby reducing external procurement costs and improving profitability.

The company is enhancing its lineup of products for affluent customers at department stores and other channels, while also promoting advertising and brand strength for in-house brands (such as NADIA). By increasing the direct sales ratio through directly-operated stores, in-house events, and customer events, the company aims to reduce reliance on wholesale and improve profit margins.

The company is strengthening its response to overseas demand and expanding its overseas sales network. As the ratio of sales to customers outside Japan exceeded 90% year on year, to the extent that regional disclosure was omitted due to the high proportion of domestic sales, the company plans to continue promoting sales expansion in overseas markets such as Asia.

Group companies engaged in wholesale and retail operations are working to improve profitability through strengthening OEM sales and increasing the efficiency of SG&A expenses. In FY2026 (ending March 2026), SG&A expenses increased to ¥5,481 million (from ¥4,955 million in the previous fiscal year), but as the rate of sales growth exceeded this increase, the operating margin improved. Cost management during a phase of declining sales will be a challenge in the coming fiscal year.

Last updated: July 19, 2026