SHIMAMURA CO., Ltd.
8227・Prime Market・Retail Trade
Business
Shimamura Co., Ltd. is an apparel chain company founded in 1953. In Japan, its core business is Fashion Center Shimamura (1,416 stores), complemented by four other formats: young casual wear brand Avail (316 stores), baby and children's products brand Birthday (336 stores), lifestyle goods and fashion brand Chambre (123 stores), and fashion goods brand Devalo (16 stores). The company's primary customer base consists of women in their 20s to 60s and their families, and it emphasizes high-quality, low-priced offerings under its "Shimamura anshin kakaku" (Shimamura peace-of-mind pricing) concept. Overseas, its Taiwanese subsidiary Shimula operates 44 stores. Consolidated net sales for FY2025 (ended February 2025) totaled ¥665,358 million, with the company operating a total of 2,251 stores comprising 2,207 domestic stores and 44 overseas stores.
Business Model
The company secures gross margin through a merchandise mix combining its private brand "CLOSSHI," JB (jointly developed brands with suppliers), and national brands, underpinned by centralized merchandise procurement and an efficient distribution network based on its own product centers (8 locations nationwide). Store operations rely primarily on part-time staff under the M-employee system, which helps contain labor costs. Capital expenditures are funded entirely from internal funds, maintaining a debt-free management structure. The operating margin for FY2025 (ended February 2025) was 8.9%, and the company continues to pursue improvement toward its 10% target.
Company Strengths
The company operates a total of 2,207 stores (as of the end of FY2025 (ending February 2025)) across five domestic business formats, achieving complete coverage of all 47 prefectures. Saitama Prefecture alone accounts for net sales of ¥59,811 million and 152 stores, securing a broad trading area ranging from rural to urban regions. In FY2025, the company plans to open 50 new stores in total across all business formats, further expanding its trading areas.
Net assets stood at ¥500,976 million at the end of FY2025 (ending February 2025). All investments, including capital expenditures of ¥12.7 billion, were funded from internal resources, maintaining zero interest-bearing debt. Operating cash flow exceeded ¥52,800 million, and the balance of cash and cash equivalents reached ¥206,200 million, indicating extremely high financial soundness.
For the mainstay private brand "CLOSSHI," the company has expanded its functional series (FIBER DRY, FIBER HEAT, etc.) as well as the higher-priced "CLOSSHI PREMIUM" line. For joint brands (JB), it has rolled out high-value-added products using natural materials, leading to higher per-item prices. In FY2025 (ending February 2025), net sales of the Shimamura business reached ¥497,709 million (up 4.4% year on year), achieving increased sales across all categories.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥583,618 million in FY2022 to ¥700,034 million in FY2026. In Q1 of FY2027 (ending February 2027) (February 21, 2026 to May 20, 2026), revenue was ¥181,663 million (+7.9% YoY), operating profit was ¥17,890 million (+16.8% YoY), ordinary profit was ¥18,794 million (+18.9% YoY), and quarterly net income attributable to owners of the parent was ¥12,857 million (+19.0% YoY), with both the revenue growth rate and profit growth rate accelerating significantly from the same period a year earlier (revenue +2.4%, operating profit +5.0%). As an external factor, record-breaking heat in late May had a positive effect on summer merchandise sales, but profit growth was driven mainly by improvement in the gross profit margin (which stood at around 34.9% in the same period a year earlier) due to expansion of private brand (PB) and joint brand (JB) products, along with relative restraint in selling, general and administrative expenses. The full-year forecast (revenue of ¥729,193 million, operating profit of ¥66,842 million) remains unchanged, and progress toward the full-year target after Q1 stood at 24.9% for revenue and 26.8% for operating profit, indicating generally steady progress.
Growth Strategy
As the final year of Mid-Term Management Plan 2027, the Company is expanding and deepening existing initiatives, with the long-term target set at net sales of ¥800,000 million and an operating margin of 10%
The Company continues to expand functional and trend-responsive private brands such as "FIBER DRY," "Cho COOL," "Iki Iki Lab," and "Rakutto!," as well as influencer-collaboration joint brands (JB), across each business format. For character merchandise, the Company is broadening its lineup beyond outerwear into general merchandise through line robbing, aiming to raise per-item unit prices and improve gross margin. In the first quarter of FY2027 (ending February 2027), each business format achieved a year-on-year sales increase of 6-19%, confirming the effectiveness of these initiatives.
The online store's "in-store pickup service" and "combined purchase" offering have performed well, particularly at urban stores, and mutual customer referral between physical stores and online has progressed steadily. The Company is expanding EC pickup linkage to Avail, Birthday, and other formats, aiming to boost weekday sales and acquire new customers. Continued progress was confirmed in the first quarter of FY2027 (ending February 2027).
At Shimula, which operates 45 stores across Taiwan, the Company is promoting enhanced sales promotion utilizing local Taiwanese influencers to raise brand awareness, together with an expanded, appealing product lineup including items planned in collaboration with Japanese influencers. In the first quarter of FY2027 (ending February 2027), net sales rose 17.3% year on year to ¥2,520 million, and segment profit reached ¥167 million (a significant improvement from ¥31 million in the same period of the prior year), indicating accelerating growth.
The Company has set targets of net sales of ¥800,000 million, an operating margin of 10%, and ROE of 9% or higher for the target fiscal year of FY2030 (ending February 2030). In the first quarter of FY2027 (ending February 2027), the operating margin of 9.8% was close to the 10% target, tracking ahead of the full-year forecast of 9.2%. Net sales need to grow approximately 14% from ¥700,034 million in FY2026 (ending February 2026) to ¥800,000 million, requiring a combination of store expansion, existing-store growth, and overseas expansion.
Last updated: July 17, 2026