NOVARESE,Inc.

Business Details

Comprised of three divisions: planning and operation of wedding ceremonies and receptions (Wedding Production Division), rental and sale of wedding attire (Wedding Attire Division), and provision of wedding catering, banquets, and general dining (Restaurant Division). Centered on fully exclusive-use guesthouse weddings, the company operates 37 domestic guesthouses, 25 dress shops, 4 affiliated facilities, and 3 overseas affiliated facilities (as of end of March 2026). In April 2026, merged with Escrit to form one of Japan's largest bridal groups.

Recent Overview

Revenue rose 13.4% driven by an increase in ceremonies held and per-ceremony unit prices, with segment profit expanding to 2.3 times the prior-year level.

Revenue in the Bridal Business for 1Q FY2026 (ending December 2026) was ¥4,371 million (up 13.4% year on year), and segment profit was ¥401 million (up 126.3% year on year), a significant improvement. This was driven by growth in wedding ceremony revenue from an increase in the number of ceremonies held and per-ceremony unit prices, as well as a recovery in demand for banquets and general dining at bridal facilities. In March 2026, "HOMAM (former Mackenzie Residence)" opened in Suruga Ward, Shizuoka City, expanding the number of domestic guesthouses to 37. Although orders received declined slightly to 1,342 couples, an improved order-taking rate led to a backlog buildup of 3,741 couples (up 6.5% year on year). As a subsequent event, the company completed an absorption-type merger with Escrit effective April 1, 2026, forming one of Japan's largest bridal groups.

Key Products

Growth Drivers

• Expansion of wedding ceremony revenue driven by an increase in the number of ceremonies held and per-ceremony unit prices (1Q FY2026 revenue +13.4%)
• Buildup of order backlog through improved order-taking rate (3,741 couples, up 6.5% year on year)
• Continued recovery in demand for banquets and general dining at bridal facilities
• Expansion of the facility network through new store openings ("HOMAM (former Mackenzie Residence)" opened in March 2026; "Amandan Peak" in Toyama scheduled to open in April 2026)
• Formation of one of Japan's largest bridal groups and creation of scale merits (cost reduction, expanded in-house production, enhanced recruiting capability) through the absorption-type merger with Escrit in April 2026
• Expansion of domestic and overseas resort wedding business, including Hawaii (Halekulani, The Kahala), Okinawa, and Miyako Island
• Ongoing plans for new store openings from 2027 onward in Nagoya, Karuizawa, Sendai (former Governor's Residence), and other locations

Risks

• Structural contraction of the overall bridal market due to the declining birthrate and decreasing number of marriages (the annual number of marriages in 2025 was approximately 500,000 couples, continuing a significant decline from 2019 levels)
• Intensifying competition from hotels and specialized wedding venues entering the guesthouse wedding market, and the spread of low-cost wedding styles
• Short-term profit pressure from increased selling, general and administrative expenses, including higher consumable costs associated with new store openings and merger-related expenses
• Capital expenditure burden and funding risk associated with new store openings (capital expenditures on property, plant and equipment of ¥968 million in 1Q FY2026)
• Integration cost and goodwill/asset valuation risk associated with the Escrit integration
• Difficulty in securing and training specialized personnel such as wedding planners (directly affecting service quality maintenance)
• Risk of downward pressure on the domestic economy from deteriorating external conditions such as the Middle East situation and U.S. trade policy