Valuence Holdings Inc.

Business Details

Valuence Holdings consists of a single segment, the Brand-name Goods, Antiques & Art Reuse Business. Domestically, the company operates a network of buying stores including Nanboya, BRAND CONCIER, and Kobijutsu Hakkodo (141 domestic stores), while overseas it operates 58 stores, primarily in Southeast Asia. The company employs a CtoBtoB/CtoBtoC model, selling purchased items through multiple channels including its own auction platform (STAR BUYERS AUCTION), retail (ALLU stores and e-commerce), and wholesale (including bullion). By expanding procurement through alliances and capturing cross-border e-commerce and inbound demand, the company has significantly improved profitability.

Recent Overview

Achieved significant profit growth in the cumulative nine months of Q3, with sales revenue up 26.7% and operating profit up 310.4%

In the cumulative nine months of Q3 FY2026 (ending August 2026) (September 2025 to May 2026), the company achieved sales revenue of ¥79,955 million (up 26.7% year on year) and operating profit of ¥5,274 million (up 310.4% year on year). Gross profit margin improved to 26.9% (up 1.6 percentage points year on year). Driven by strong alliance and overseas procurement performance together with high bullion prices, retail sales revenue grew 47.2% and wholesale (bullion) grew 49.5%, both showing high growth. Consignment sales reached a record high in the standalone third quarter. The full-year earnings forecast (sales revenue of ¥106,000 million, operating profit of ¥5,500 million) remains unchanged. In the fourth quarter, the company plans to actively pursue strategic investments aimed at growth in the following fiscal year and beyond.

Key Products

Growth Drivers

• Expansion of wholesale (bullion) sales revenue driven by sustained high bullion prices (cumulative nine months of Q3 FY2026, ending August 2026: ¥24,380 million, up 49.5% year on year)
• Continued high growth in retail sales revenue (cumulative nine months of Q3 FY2026, ending August 2026: ¥19,784 million, up 47.2% year on year), driven by a combination of strong inbound demand, one-to-one marketing initiatives utilizing LINE, and cross-border e-commerce (launched November 2025)
• Expansion of procurement through alliances (strengthening of off-store procurement networks through partnerships with department stores, financial institutions, and others)
• Expansion of overseas procurement and stores, primarily in Southeast Asia (58 overseas buying stores, overseas sales revenue ratio of 21.6%)
• Expansion of proprietary auction consignment sales GMV (cumulative nine months of Q3 FY2026, ending August 2026: ¥19,978 million, up 32.7% year on year) and increased recognition as an auction platform
• Improved profit structure through continued procurement policy emphasizing gross profit margin and rising retail sales mix (gross profit margin of 26.9%, up 1.6 percentage points year on year)
• Increase in listed items through seamless listing and expansion of e-commerce sales

Risks

• Risk of fluctuations in bullion prices (wholesale (bullion) sales revenue accounts for over approximately 30% of total sales revenue, creating significant exposure to earnings impact from price declines)
• Geopolitical risks such as U.S. tariff measures (potential impact on purchasing appetite of overseas partners)
• High level of interest-bearing debt (short-term borrowings of ¥7,700 million and long-term borrowings (including current portion) of ¥13,470 million, among others, reflecting high reliance on borrowing to fund merchandise procurement)
• Risk of increased expenses from active strategic investment in the fourth quarter (although the cumulative nine months of Q3 already achieved ¥5,274 million against the full-year operating profit forecast of ¥5,500 million, expanded fourth-quarter investment could pressure full-year results)
• Intensifying competition in the domestic reuse market (expansion of flea market apps, new market entrants, and accelerating industry consolidation through M&A)
• Risks related to store operation costs and labor costs in overseas expansion (risks associated with expanding operations in emerging markets, primarily in Southeast Asia)
• Rising customer acquisition costs (increased advertising expenses from awareness initiatives such as TV commercials and use of the 'Original Birkin')