AB&Company Co., Ltd.
9251・Growth Market・Services
Business
AB&Company Co., Ltd. is a pure holding company that operates a nationwide beauty salon chain centered on the "Agu." brand (13 consolidated subsidiaries). It comprises four segments: Directly Operated Beauty Salon Business (447 stores), Franchise Business (653 stores), Interior Design Business, and Head Office Administration business. As of the end of October 2025, the group reached a total of 1,100 stores, with locations established in all 47 prefectures. It is characterized by flexible utilization of human resources through subcontractor agreements with stylists, and a unique model in which stylists trained within the group are appointed as FC owners. Its main customers are beauty service users nationwide, and the number of customer visits for the fiscal period ended October 2025 reached 5,460,758 across the group.
Business Model
Of the ¥19,378 million in revenue, the Directly Operated Beauty Salon Business accounts for approximately 81%, with the remainder supplemented by the Franchise Business (external revenue of ¥1,831 million, operating margin of 40.4%) and the Interior Design Business (external revenue of ¥1,800 million). The Franchise Business derives its main revenue from royalties (a fixed rate applied to monthly store sales), giving it a high-margin, capital-efficient structure. By insourcing interior design, the company keeps store opening costs down, supporting accelerated store openings across the group as a whole.
Company Strengths
As a matter of policy, the company does not recruit franchise owners from outside the group, instead adopting a unique model that appoints stylists trained within the group. As of the end of October 2025, 39 FC owners operated locations across the country, and the number of FC stores expanded from 417 at the end of October 2021 to 653 at the end of October 2025. The model is characterized by low attrition risk and avoidance of cannibalization.
By entering into outsourcing (business commission) contracts with stylists and linking compensation entirely to sales performance, the company has converted personnel costs into variable costs. The average stylist compensation is ¥4.10 million per year, exceeding the industry average of ¥3.71 million per the Ministry of Health, Labour and Welfare survey. This approach allows the company to secure diverse talent, including hairstylists raising children, with referral hiring serving as the primary channel for mid-career recruitment.
B-first Co., Ltd. centrally manages advertising and promotional activities for the entire group, optimizing top placement exposure and reservation management on HOT PEPPER Beauty. A dedicated in-house team has been established, accumulating operational know-how. Combined with the suburban and elevated/upper-floor store formats, this approach keeps fixed costs low while achieving profitability within a short period after store opening.
ENVALITH's Perspective
Performance Trend
Revenue maintained an expansionary trend, growing from ¥10,911 million in FY2021 to ¥19,378 million in FY2025. Meanwhile, operating profit had declined for two consecutive periods after peaking at ¥1,804 million in FY2023, falling to ¥1,740 million in FY2024 and ¥1,630 million in FY2025. In the first half of FY2026 (ending October 2026), the increase in store count from the M&A of three beauty salon operating companies executed in the prior period drove revenue growth (H1 revenue of ¥10,780 million, up 16.8% year on year), and operating profit recovered sharply to ¥1,240 million (up 52.5% year on year). A decrease of ¥144 million in depreciation expense due to a change in accounting estimates (extension of useful life and lease terms) also boosted profit. The full-year forecast remains unchanged at revenue of ¥22,897 million (up 18.2% year on year) and operating profit of ¥2,400 million (up 47.1% year on year). While cost pressures from rising prices and labor costs continue as part of the external environment, an upward trend in customer spending per visit is supporting the improvement in profitability.
Growth Strategy
Pursuing further store network expansion beyond 1,200+ stores through three pillars: FC owner development, regional expansion, and M&A
Under its unique model of appointing stylists trained within the group as FC owners, the company plans a net increase of 65 stores again in FY2026 (ending October 2026). Segment profit in the Franchise Business for the first half was ¥653 million (up 18.9% year on year), expanding steadily, with the accumulation of royalty revenue continuing.
Building on the track record of the prior fiscal year, when the company executed M&A of three beauty salon operating companies and boosted revenue in the Directly Operated Beauty Salon Business by 20.6% year on year, the company continues to expand capital alliances with external beauty salons. In May 2026, RIN Beauty Co., Ltd. (5 directly operated stores) was made a wholly owned subsidiary for ¥350 million, confirming the continuation of the M&A strategy.
The Directly Operated Beauty Salon Business, which had been in the red through the prior fiscal year (segment loss of ¥20 million in the first half of FY2025 (ending October 2025)), turned to a segment profit of ¥271 million in the first half of FY2026 (ending October 2026). Scale expansion driven by M&A effects and an upward trend in customer spending per visit (¥6,171 in FY2025 (ending October 2025)) are driving the profitability improvement, and the business is expected to establish sustained profitability for the full year.
In the first half of FY2026 (ending October 2026), segment performance deteriorated to a segment loss of ¥35 million (versus a segment profit of ¥20 million in the same period of the prior year) due to a decline in sales to franchisees and other industries. Recovery of external orders from other industries such as fitness, dental, and food service remains a challenge, while a recovery in internal demand accompanying the expansion of the group's store count is also expected.
Last updated: July 17, 2026