SEKIDO CO.,LTD.
9878・Standard Market・Retail Trade
Business
Sekido Co., Ltd. operates two core businesses: a fashion business running 29 directly-operated stores centered on the Kanto, Tokai, and Tohoku regions (10 GINZA LoveLove stores and 19 &choa! stores), and a beauty business serving as the exclusive Japan distributor for Korean cosmetics brands, handling wholesale to domestic retailers and EC operations. The fashion business handles precious metals, watches, bags, and Korean cosmetics and sundries, while the beauty business operates four brands: KAHI, athé, MEDIPEEL, and MEDITHERAPY. A leasing segment and an external sales (gaisho) segment provide supplementary revenue. For FY2026 (ending March 2026), net sales were ¥5,758 million, with the fashion business accounting for 68.2% and the beauty business for 27.8%.
Business Model
The fashion business generates revenue through direct sales at permanent stores in shopping centers and at event sales spaces, in addition to reaching customers nationwide via its own e-commerce site. The beauty business earns income as the sole Japan distributor for a Korean brand, through wholesale to major retailers and operation of an official e-commerce site. The leasing segment secures high-margin revenue from tenant leasing of self-owned properties, requiring no procurement costs, while the outside sales (gaisho) segment steadily accumulates orders through corporate facility construction work.
Company Strengths
The company operates three channels—29 directly-managed stores (including 19 &choa! stores), its own e-commerce platform, and wholesale—leveraging customer data accumulated through store sales for AI-driven repeat-visit promotion measures. Beauty category sales within the Fashion segment for FY2026 (ending March 2026) were solid at ¥975 million (up 103.8% year on year), confirming the depth of the customer base built through the synergy of stores, e-commerce, and wholesale.
The company holds Japan general distributorship agreements for four brands—KAHI, athé, MEDIPEEL, and MEDITHERAPY—giving it an exclusive position in domestic wholesale and e-commerce operations for these brands. Procurement for the "Other" category within the beauty business reached ¥1,221 million, up 249.2% year on year, confirming from procurement results that full-scale rollout of new brands is underway.
The leasing segment, which rents out company-owned store and parking lot properties to tenants, recorded sales of ¥35 million against segment profit of ¥30 million (a profit margin of approximately 86%) in FY2026 (ending March 2026), continuing its high-margin structure that requires no procurement costs. As fixed income relatively unaffected by economic fluctuations, it contributes to financial stability.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026, restated) was ¥5,758 million (down 23.2% year on year), with an operating loss of ¥708 million, an ordinary loss of ¥795 million, and a net loss of ¥1,141 million. Extraordinary losses included an impairment loss of ¥312 million (¥270 million in the Fashion business, ¥42 million at the corporate level, etc.) and a provision for store closure losses of ¥27 million. Total assets declined to ¥4,389 million (down ¥380 million from the previous fiscal year-end), and net assets fell to ¥45 million (down ¥188 million). The equity ratio dropped to 0.9%, further deepening financial fragility. As external factors, a revenue gap during the transition period between old and new brands in the Beauty business, along with rising costs (an increase in non-operating expenses including ¥29 million in stock acquisition rights issuance costs), pressured performance.
Growth Strategy
Rebuilding the earnings structure through full-scale rollout of new Korean cosmetics brands and optimization of the store network
The company is fully rolling out new brands such as KAHI, athé, MEDIPEEL, and MEDITERAPY to fill the sales gap left by the loss of its former flagship brand. Expansion of medicube (facial beauty devices) into consumer electronics retailers also continues. In FY2026 (ending March 2026), beauty business sales remained at ¥1,599 million, still in the process of recovery.
In the fashion business, the company continues to open new &choa! stores while promoting customer acquisition through AI-based customer analytics, influencer initiatives, and cross-border e-commerce (Buyee Connect). In FY2026 (ending March 2026), the fashion business posted sales of ¥3,928 million and a segment loss of ¥63 million, still in the red, though the loss was smaller than that of the beauty business.
The company is proceeding with the closure and downsizing of unprofitable stores, recording a provision for store closure losses of ¥27 million. It also recorded an impairment loss of ¥312 million to reduce the book value of fixed assets, aiming to lower future depreciation burdens. However, with an equity ratio of 0.9%, financial capacity remains extremely limited, and additional capital raising is a prerequisite.
The company plans to cultivate its in-house developed brand as a future revenue source through domestic wholesale and overseas exports. This is a medium- to long-term initiative aimed at reducing dependence on external brands, though its contribution to current performance appears limited.
Last updated: July 19, 2026