Nitori Holdings Co., Ltd.
9843・Prime Market・Retail Trade
Nitori Business
The core business accounting for approximately 88% of group revenue; a manufacturing-logistics-IT retail business for furniture and interior goods.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (segment total) | ¥816,196 million | ¥820,886 million | ↓ |
| Revenue from external customers | ¥803,548 million | ¥809,684 million | ↓ |
| Segment profit | ¥118,381 million | ¥118,975 million | ↓ |
| Segment profit margin | 14.5% | 14.5% | — |
| Segment assets | ¥1,329,216 million | ¥1,268,711 million | ↑ |
| Capital expenditures | ¥43,490 million | ¥122,565 million | ↓ |
| In-store sales | ¥677,774 million | ¥678,817 million | ↓ |
| Mail-order sales | ¥90,854 million | ¥96,823 million | ↓ |
| Domestic existing-store customer count (YoY) | 92.8% | － | ↓ |
| Domestic existing-store sales (YoY) | 95.8% | － | ↓ |
| Total number of stores (Nitori business) | 1,017 stores | 995 stores | ↑ |
| Depreciation and amortization | ¥60,754 million | ¥56,915 million | ↑ |
| Impairment loss | ¥3,972 million | ¥5,423 million | ↓ |
Business Details
The segment centers on the development, manufacturing, and sale of furniture and interior goods, and also operates real estate leasing, advertising services, and logistics services. Domestically, it operates multiple formats including Nitori, Deco Home, and N+, and has expanded overseas into 11 Asian countries/regions. Through an integrated "manufacturing-logistics-IT-retail" model spanning manufacturing through logistics to sales, it provides high-quality, low-priced products. As of the end of FY2026 (ending March 2026), the segment operated 808 domestic stores and 209 overseas stores, for a total of 1,017 stores.
Recent Overview
Revenue declined slightly but margins were maintained, and the logistics expense ratio is expected to peak as all proprietary DCs become operational
In the Nitori Business for FY2026 (ending March 2026), domestic existing-store customer traffic was sluggish at 92.8% of the prior period and sales were 95.8% of the prior period, leading to a decline in revenue to ¥816,196 million (down 0.6% year on year). Segment profit also declined slightly to ¥118,381 million (down 0.5% year on year), remaining roughly flat. On the other hand, all six proprietary distribution centers became fully operational, and the logistics expense ratio is expected to peak out. Domestically, 40 Nitori stores and 22 Deco Home stores were opened, while 30 stores were opened overseas. In mainland China, profitability improved significantly through withdrawal from unprofitable stores (reducing the store count from 100 to 78). The company also restructured its merchandising organization to improve the quality, volume, and speed of product development. Capital expenditures fell sharply to ¥43,490 million from ¥122,565 million in the prior period, indicating the completion of the DC investment phase.
Key Products
Growth Drivers
- Accelerated new product development (strengthened quality, volume, and speed of development through reorganization of the merchandising division, generating hit products such as pocket coil mattresses and ultra-lightweight frying pans)
- Expansion of the home appliance category (products such as the "410L 4-door fan-type refrigerator-freezer," "Mini LED LCD TV," and "12kg heat-pump drum-type washer-dryer" exceeded prior-period results and won home appliance awards)
- Peak-out of the logistics expense ratio following completion of logistics infrastructure development (full operation of six proprietary DCs, labor savings and cost reduction through introduction of devanning robots)
- Renewed growth in overseas business (significant profitability improvement in mainland China, deployment of new store-opening models in Vietnam, South Korea, etc., and cost reductions from reviewing overseas shipping routes)
- Strengthened price competitiveness (cost reduction through specification changes, raw material review, development of new suppliers, in-house manufacturing arrangements, and smaller product packaging)
- Enhanced brand awareness through regular new product exhibitions leveraging media and influencers
Risks
- Continued decline in customer traffic (domestic existing-store customer count at 92.8% of prior period, reflecting delayed recovery in the consumer sentiment index and weaker purchasing appetite for durable goods)
- Insufficient product development capability (risk that new products with superior design, functionality, and price competitiveness are not developed adequately, hindering timely product proposals)
- Rising labor and SG&A costs (SG&A expenses increased year on year due to human capital investments such as active hiring and company-wide wage revisions)
- Uncertainty in the mainland China business (ongoing withdrawal from unprofitable stores and revision of store-opening criteria, with store count shrinking from 100 to 78)
- Intensifying sales competition that crosses industry and business-format boundaries (a challenging competitive environment across the furniture and interior industry as a whole)
- Rising import costs due to yen depreciation and higher raw material prices (impact on cost of sales)
- U.S. trade policy and geopolitical risks (impact on supply chains and costs from global uncertainties such as tensions in the Middle East and Iran)
Last updated: June 24, 2026