CHIYODA CO., LTD.
8185・Prime Market・Retail Trade
Footwear Business
The sole segment of the Chiyoda Group, a footwear specialty retail chain operating 859 stores nationwide.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated, cumulative first quarter) | ¥21,582 million | ¥21,980 million (same period of prior year) | ↓ |
| Operating profit (consolidated, cumulative first quarter) | ¥945 million | ¥1,434 million (same period of prior year) | ↓ |
| Operating margin (consolidated, cumulative first quarter) | 4.4% | 6.5% (same period of prior year) | ↓ |
| Ordinary profit (consolidated, cumulative first quarter) | ¥1,099 million | ¥1,457 million (same period of prior year) | ↓ |
| Quarterly net profit attributable to owners of parent (consolidated, cumulative first quarter) | ¥815 million | ¥1,306 million (same period of prior year) | ↓ |
| Number of stores at period-end | 859 stores | 863 stores (end of previous consolidated fiscal year) | ↓ |
| Total assets (consolidated) | ¥74,367 million | ¥71,016 million (end of previous consolidated fiscal year) | ↑ |
| Equity ratio (consolidated) | 67.0% | 70.3% (end of previous consolidated fiscal year) | ↓ |
| Impairment loss (cumulative first quarter) | ¥148 million | ¥31 million (same period of prior year) | ↓ |
| Net profit per share for the quarter | ¥24.02 | ¥37.17 (same period of prior year) | ↓ |
Business Details
The footwear retail and wholesale business is operated by Chiyoda Co., Ltd. (standalone) and its consolidated subsidiaries. The company operates stores nationwide and is advancing diversification of sales channels through the development and expansion of private brand products, OMO initiatives, and strengthening of its EC business and corporate business. In November 2024, the company transferred its Apparel Business, concentrating management resources into the single segment of the Footwear Business. In the first quarter of FY2027 (ending February 2027) (March to May 2026), the company recorded net sales of ¥21,582 million and operating profit of ¥945 million.
Recent Overview
In the first quarter of FY2027 (ending February 2027), both net sales and profit declined significantly year on year. Impairment loss surged.
In the first quarter of FY2027 (ending February 2027) (March to May 2026), net sales were ¥21,582 million (down 1.8% year on year) and operating profit fell sharply to ¥945 million (down 34.1% year on year). Net profit was pressured by a surge in impairment loss, which rose from ¥31 million in the same period of the prior year to ¥148 million. On the other hand, selling, general and administrative expenses were reduced by 2.5% year on year. Initiatives implemented included a large-scale 90th anniversary appreciation sale and the launch of new "Spat Shoes" products. The number of stores at the end of the first quarter was 859 (down 4 stores from the end of the previous fiscal year). The full-year earnings forecast (net sales of ¥82,500 million, operating profit of ¥1,400 million) remains unchanged.
Key Products
Growth Drivers
- Strengthening brand power and advancing the 3.4 million pair sales plan through expansion and increased recognition of private brand products (including Spat Shoes)
- Expansion of digital sales through strengthening of the EC business and OMO strategy, and strengthened PR through the use of external influencers
- Acquisition of new customers and promotion of store visits through the permanent fixture of low-price products and introduction of new products (such as Yokubari Pumps)
- Reduction of selling, general and administrative expenses through review of advertising expenses and control of administrative costs (down 2.5% year on year)
- Diversification of sales channels beyond physical stores, including a fundamental review of the corporate business
Risks
- Suppression of customer traffic and average spending per customer due to rising prices and consumers' tendency toward frugality
- Pressure on fixed costs such as labor costs and rent due to wage increases and inflation
- Risk of rising procurement costs due to the situation in the Middle East, yen depreciation trends, and U.S. trade policy
- Occurrence of impairment losses associated with continued store closures (¥148 million in the first quarter, a sharp increase from the same period of the prior year)
- Volatility in financial and capital markets due to rising interest rates and an uncertain economic outlook
Last updated: May 20, 2026