Joshin Denki Co.,Ltd.

Business Details

The company's core business is specialty retail of home appliances, information and communication equipment, entertainment products, and housing equipment, operating through two channels: Physical Store Sales (217 stores) and EC (Internet Sales). The service infrastructure for delivery, installation, and repair provided by Joshin Service Co., Ltd. supports the business foundation. The company operates in five categories: "Home Appliances," "Entertainment," "Renovation," "Mobile Communication," and "Support Business," and is promoting a region-focused dominant strategy.

Recent Overview

Revenue and operating profit increased substantially, but net profit declined slightly due to a reduction in extraordinary gains. New mid-term management plan launched.

In FY2026 (ending March 2026), revenue reached ¥436,650 million (up 8.3% year on year) and operating profit reached ¥5,422 million (up 47.0% year on year), showing significant improvement. Growth was driven by strong demand for air conditioners due to intense summer heat (¥46,523 million, up 10.9%), mobile phones (¥55,904 million, up 13.8%), games (¥69,066 million, up 22.5%), and personal computers (¥24,308 million, up 21.7%). Sales promotion effects associated with the Hanshin Tigers' league championship win, their first in two years, also contributed. On the other hand, extraordinary gains decreased due to a reduction in gains on sales of investment securities recorded in the prior period (from ¥3,007 million to ¥1,629 million in the current period), resulting in profit attributable to owners of parent of only ¥3,280 million (down 3.7% year on year). For FY2027 (ending March 2027), the company has launched a new mid-term management plan, the "JT-2028 Management Plan" (FY2026-FY2028), forecasting revenue of ¥438,000 million and operating profit of ¥6,000 million.

Key Products

Growth Drivers

• Increased demand for air conditioners due to intense summer heat (FY2026 (ending March 2026): ¥46,523 million, up 10.9% year on year)
• Expanded replacement demand for mobile phones (FY2026 (ending March 2026): ¥55,904 million, up 13.8% year on year)
• Replacement demand for personal computers (FY2026 (ending March 2026): ¥24,308 million, up 21.7% year on year)
• Growth in the entertainment category driven by new video game product launches (games, models, toys, musical instruments: ¥69,066 million, up 22.5% year on year)
• Continued expansion of the Internet Sales channel (FY2026 (ending March 2026): ¥79,004 million, 18.1% of total sales)
• Sales promotion effects associated with the Hanshin Tigers' league championship win, their first in two years
• Promotion of "strengthening the profitability of the physical store business," "full-scale entry into private brand products," and "restructuring of marketing functions" under the new mid-term management plan, the "JT-2028 Management Plan"
• Stable growth in repair and construction work revenue (FY2026 (ending March 2026): ¥20,515 million, up 7.3% year on year)

Risks

• Growing frugality due to stagnant real wages amid rising prices, leading to sluggish demand for durable consumer goods
• Uncertainty over the economic outlook due to changes in US trade policy and expanding geopolitical risks (Middle East situation, prolonged regional conflicts)
• Rising product prices and declining consumer sentiment due to soaring raw material prices and exchange rate fluctuations
• Intensifying competition with other companies in the same industry (home appliance mass retail industry)
• Pressure to increase selling, general and administrative expenses due to continued active investment in human capital and systems (FY2026 (ending March 2026): ¥102,365 million, up 3.9% year on year)
• Risk regarding achievement of targets under the new mid-term management plan "JT-2028 Management Plan" (difficulty in executing new initiatives such as entry into private brand products)
• Long-term contraction of the domestic consumer market due to the declining birthrate and aging population, and population decline
• Risk of fluctuation in net profit due to the disappearance of extraordinary gains (such as gains on sales of investment securities)
• Declining trend in operating cash flow (FY2026 (ending March 2026): ¥13,085 million, down ¥3,288 million year on year)