COX CO., LTD.
9876・Standard Market・Retail Trade
Cox Co., Ltd. (Apparel Retailing – Single Segment)
An apparel specialty store chain under the AEON Group, operating 177 stores nationwide.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Q1 cumulative) | ¥3,802 million | ¥3,769 million | ↑ |
| Operating profit (Q1 cumulative) | ¥328 million | ¥469 million | ↓ |
| Ordinary profit (Q1 cumulative) | ¥360 million | ¥516 million | ↓ |
| Quarterly net profit attributable to owners of parent | ¥261 million | ¥426 million | ↓ |
| Operating margin (Q1 cumulative) | 8.7% | 12.5% | ↓ |
| Quarterly net profit per share | ¥9.47 | ¥15.45 | ↓ |
| Existing store sales YoY | 99.2% | ― | ↓ |
| EC sales YoY | 113.3% | ― | ↑ |
| Number of stores at period-end | 177 stores | 174 stores | ↑ |
| Equity ratio | 73.2% | 70.5% | ↑ |
| Full-year net sales forecast | ¥15,800 million | ¥14,955 million | ↑ |
| Full-year operating profit forecast | ¥1,360 million | ¥1,324 million | ↑ |
Business Details
The Group operates in the single segment of apparel retailing. Centered on its flagship brand "ikka," the Group also operates "LBC" and EC-exclusive brands (VENCE share style, notch., TOKYO DESIGN CHANNEL, NO NEED, etc.), operating primarily as tenants in shopping centers nationwide (such as AEON Mall). Belonging to the AEON Group's specialty store business group, the Group conducts business through both store sales and EC sales, centered on fashion and lifestyle proposals. The number of stores at the end of Q1 of FY2027 (ending February 2027) was 177 (versus 174 at the end of the prior fiscal year).
Recent Overview
Despite a slight increase in sales, operating profit fell 30% year-on-year due to a 2.2-point deterioration in gross margin and higher SG&A expenses.
In Q1 of FY2027 (ending February 2027) (March to May 2026), net sales were ¥3,802 million (up 0.9% year-on-year), securing a slight increase in revenue. However, gross margin deteriorated by 2.2 points due to foreign exchange effects, weak regular-price sales, and an inventory valuation review. In addition, SG&A expenses increased by ¥77 million year-on-year due to higher personnel costs such as temporary staffing fees and outsourced sales service fees, as well as increased payment commissions associated with EC expansion, resulting in operating profit of only ¥328 million (down 30% year-on-year). On the other hand, EC sales performed well, growing 113.3% year-on-year. The Group opened 4 new stores and relocated/renovated 2 stores, bringing the number of stores at period-end to 177. There is no change to the full-year earnings forecast (net sales of ¥15,800 million and operating profit of ¥1,360 million).
Key Products
Growth Drivers
- EC sales expansion: Achieved EC sales growth of 113.3% year-on-year through expanded influencer collaborations (collaborative product development, SNS-linked advertising). The Group also continues to promote member retention through OMO enhancement and strengthened member incentives
- Store network expansion: Opened 4 new stores and relocated/renovated 2 stores in Q1, bringing the total to 177 stores. The Group is also strengthening sales capability through an enhanced trainer system and the launch of nationwide sales training
- Gross margin management: Strengthening regular-price sales centered on magazine tie-up products, utilizing carryover products in events and EC, and reducing procurement costs through an increased ASEAN production ratio and narrowing of suppliers
- Continuation of magazine tie-up campaigns: Strengthening brand messaging through the use of celebrity talent (implemented three times for women's, twice for men's)
- Full-year forecast for FY2027 (ending February 2027): The Group plans net sales of ¥15,800 million (up 5.6% year-on-year) and operating profit of ¥1,360 million (up 2.7% year-on-year)
Risks
- Climate change risk: A delayed rise in temperatures compared to the prior year led to sluggish sales of early summer and summer items. Weak sales during the regular-price selling period directly led to a deterioration in gross margin (down 2.2 points)
- Foreign exchange risk: Rising procurement costs due to continued yen depreciation (foreign exchange losses of ¥15 million were recorded as non-operating expenses for the period). The Group is addressing this by increasing the ASEAN production ratio and promoting direct trade
- Cost increase risk: SG&A expenses rose to 103.9% of the same period of the prior year due to higher personnel costs, including temporary staffing fees and outsourced sales service fees, as well as increased payment commissions associated with EC expansion
- Consumer thrift orientation: Reduced purchasing due to rising prices and cost increases affected the apparel industry as a whole, with existing store sales falling below the prior year at 99.2% year-on-year
- Inventory valuation risk: A review of inventory valuation amid weak regular-price sales affected gross margin. An inventory valuation review was also conducted in the current Q1
- Staffing shortage risk: As indicated by the rise in temporary staffing fees and outsourced sales service fees, the cost of securing sales floor staff is on an upward trend
Last updated: May 20, 2026