ENVALITH
株式会社大和 logo

Daiwa Co.,Ltd

8247・Standard Market・Retail Trade

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株式会社大和 logo
Daiwa Co.,Ltd8247

Business

Daiwa Co., Ltd., founded in 1923, is a group company centered on the department store business anchored by two stores — Korinbo Store in Kanazawa, Ishikawa Prefecture, and Toyama Store in Toyama City — and also operates diversified businesses including hotels, publishing, restaurants, printing, and staffing services. The Department Store Business accounts for approximately 85% of group sales and is the core segment, with main customers being high-spending consumers and local residents in the Hokuriku region. The group comprises 7 consolidated subsidiaries and 1 equity-method affiliate, and is listed on the Standard Market of the Tokyo Stock Exchange. Consolidated net sales for FY2025 (ending February 2025) were ¥16,434 million.

Business Model

In its core Department Store Business, the company procures merchandise through a combination of consignment and purchase buying, generating revenue by offering high-quality products and original merchandising aimed at high-spending consumers. Each group company (Hotel Business, Publishing Business, Restaurant Business, Printing Business, and Staffing Services Business) promotes independent, self-reliant management on a stand-alone profitability basis, while also leveraging internal synergies with the Department Store Business. Working capital and capital expenditures are funded primarily through operating cash flow, supplemented by borrowings from financial institutions as needed.

Company Strengths

Founded in 1923, the two stores in Kanazawa and Toyama have rolled out brands and promotions "only this company can offer" in the Hokuriku region. The company has a track record of introducing regionally exclusive brands, such as "Jo Malone London" (Korinbo Store), the first store opening in Hokuriku, and "Takumi Otsuka" (Toyama Store), the first store opening in Toyama Prefecture, thereby differentiating itself from competitors.

The sundries category, including luxury imported watches and cosmetics, has performed steadily, with its sales composition ratio rising to 23.5%. Efforts to acquire premium customers using the Daiwa Primary Card Gold have progressed further penetration into the highly profitable high-spending customer segment.

The ordinary loss of the Hotel Business (Kanazawa New Grand Hotel Co., Ltd.) shrank significantly from ¥-129 million in the previous period to ¥-36 million. The Publishing Business (Keiso Shobo Co., Ltd.), Printing Business (Daiwa Printing Co., Ltd.), and Restaurant Business (Restaurant Daiwa Co., Ltd.) have maintained stable profitability, forming a diversified group earnings base that spreads risk away from dependence on the Department Store Business.

ENVALITH's Perspective

Operating profit for the first quarter of FY2027 (ending February 2027) improved to ¥203 million (+10.2% year-on-year), but recurring profit was ¥180 million (-7.0% year-on-year) and quarterly net profit attributable to owners of the parent was ¥176 million (-6.9% year-on-year), both declining. The main cause was the disappearance of ¥23 million in compensation income (non-operating income) recorded in the same period of the previous year, and the structure in which improvement in core business earnings is offset by deterioration in non-operating income/expenses continues. Selling, general and administrative expenses also increased by ¥21 million year-on-year to ¥2,007 million, indicating continued cost pressure.

The full-year forecast for FY2027 (ending February 2027) calls for net sales of ¥16,000 million (+0.1% year-on-year), operating profit of ¥250 million (+31.1% year-on-year), recurring profit of ¥150 million (-17.2% year-on-year), and net profit of ¥100 million. The company has already achieved cumulative first-quarter operating profit of ¥203 million, representing a high progress rate of 81% against the full-year forecast of ¥250 million; keeping the forecast unchanged in light of seasonality from the second quarter onward (summer and year-end gift-giving sales seasons) appears conservative. On the other hand, the forecast has not been revised despite citing geopolitical risk, cost increases, and growing consumer thrift as reasons, also signaling wariness of downside risk.

Comprehensive income for the first quarter of FY2027 (ending February 2027) fell sharply by 73.2% year-on-year to ¥105 million (down from ¥395 million in the same period of the previous year). Valuation difference on available-for-sale securities deteriorated significantly to -¥64 million, from +¥240 million in the same period of the previous year, with the decline in the market value of held shares pressuring the quality of net assets. Although the equity ratio improved to 20.5% (from 19.7% at the end of the previous fiscal year), investment securities of ¥5,371 million account for approximately 20% of total assets, and the risk of net asset fluctuation due to stock market conditions (an external factor) continues to warrant close attention.

Growth Strategy

Two-pronged strategy centered on developing region-specific products and initiatives while deepening relationships with key customers and acquiring next-generation customers

Under the policy of promoting "products only Daiwa can offer" and "initiatives only Daiwa can undertake," the company continues to differentiate itself from other stores through initiatives such as attracting brands opening their first stores in the Hokuriku region (Swatch Store Kanazawa) and introducing new sweets at popular regional products events (Great Hokkaido Exhibition). This aims to acquire new customer segments and increase visit frequency among existing customers.

Pop-up events for luxury brands targeting corporate sales (gaisho) customers are held periodically at both stores, addressing the needs of discerning, high-spending consumers seeking authentic products. In the first quarter of FY2027 (ending February 2027), the accessories, personal items, and household goods categories achieved year-on-year revenue growth, indicating progress in the shift toward higher value-added categories.

Through continuous renewal of the food floor—including the renovation and reinforcement of the fresh seafood section "Kaihomaru" at Toyama Store and the new introduction of "Kobe Croquette" at Korinbo Store—the company aims to diversify reasons for customer visits and enhance store appeal. The food category maintained its position as a core category in the first quarter of FY2027 (ending February 2027), with total sales of ¥2,416 million (24.8% of total composition).

Subsidiaries in the Hotel Business, Publishing Business, Printing Business, Staffing Services Business, and other areas are each promoting independent and autonomous management within their respective business domains. In the first quarter of FY2027 (ending February 2027), all reporting segments maintained profitability, reflecting progress in diversifying revenue dependence away from the Department Store Business. The Staffing Services Business was elevated to an independent reporting segment starting from the previous fourth quarter.

Last updated: July 17, 2026