YELLOW HAT LTD.
9882・Prime Market・Wholesale Trade
Business
Yellow Hat Ltd. is one of Japan's largest auto supplies chain operators, engaged in the retail and wholesale sale of automotive and motorcycle-related products as well as the real estate leasing business. The company operates five brands—Yellow Hat, Kakuyasu Tire Tread, 2rinkan, Bike-Kan, and Y's Road—with a total of 936 stores nationwide as of the end of FY2026 (ending March 2026), excluding vehicle inspection centers, coin-operated car washes, and Niconico Rent-a-Car locations. Its primary customers are general consumers who rely on automobiles and motorcycles for daily transportation, and the company provides a wide range of car life services, from consumables such as tires and oil to installation and maintenance work (labor charges), vehicle inspections, and automobile insurance. Under a group structure comprising 44 consolidated subsidiaries and 3 affiliated companies, the auto supplies sales business accounts for over 96% of net sales.
Business Model
The company employs a composite revenue model combining the sale of consumables such as tires, oil, and batteries (retail and wholesale) with labor income from installation and maintenance services. In FY2026 (ending March 2026), labor revenue expanded to ¥25,266 million (111.0% year on year), and this high-gross-margin labor income underpins the profit structure. In addition, the group's real estate leasing business (revenue of ¥5,793 million, profit margin of 24.3%) supplements the earnings base with stability. The structure is designed to expand the store network as regional infrastructure through a small-trade-area, low-cost store opening strategy, while cultivating loyal customers by leveraging membership and POS data to encourage repeat visits.
Company Strengths
As of the end of FY2026 (ending March 2026), the company operates a total of 936 stores nationwide, including 765 Yellow Hat stores. Through a small-trade-area, low-cost store opening strategy, the company achieved a net increase of 19 stores during the period, establishing a competitive advantage as regional infrastructure that captures local residents' maintenance and consumables needs amid the decline in car dealerships and gas stations.
In FY2026 (ending March 2026), labor revenue reached ¥25,266 million (111.0% year-on-year, an increase of ¥2,493 million), expanding in absolute terms while maintaining a 14.8% share of sales composition. With the number of WEB service reservations growing to 157% year-on-year, the company has built a system that continuously captures high-gross-margin maintenance work demand in conjunction with digital customer acquisition.
The company covers the motorcycle and sports cycle market through three brands: 2rinkan (65 stores), Bike Kan (78 stores), and Y's Road (28 stores). In January 2025, the company made Y International Co., Ltd. (now Y's Road Yellow Hat) a subsidiary, and began incorporating it into consolidated earnings from the current fiscal year, achieving revenue diversification independent of car accessories.
ENVALITH's Perspective
Performance Trend
Revenue expanded +15.7% cumulatively over five fiscal periods, from ¥148,038 million in FY2022 (ended March 2022) to ¥171,280 million in FY2026 (ending March 2026), with the current period accelerating to +11.2% year on year. The main drivers were the start of consolidation of Wise Road and Yellow Hat, front-loaded demand ahead of tire manufacturers' price revisions (a tailwind from external market conditions), and strong consumables and labor charge revenue. On the other hand, operating profit declined for the first time in five periods to ¥15,087 million (down 2.4% year on year), with the operating profit margin falling to 8.8% (from 10.0% in the prior period). This was mainly due to a sharp increase in selling, general and administrative expenses (up 14.3% year on year), which included one-time costs such as logistics facility relocation and system upgrades. Net income for the period increased to ¥11,968 million (up 6.3% year on year), supported by the recognition of gains on sales of investment securities (¥1,166 million). For FY2027 (ending March 2027), revenue is forecast at ¥176,000 million and operating profit at ¥16,000 million (up 6.0% year on year), with the focus on margin recovery through cost normalization.
Growth Strategy
Aiming to become a total service company through four pillars: store expansion, enhanced service labor capabilities, deepened DX, and expansion of the two-wheeler business
The company is actively rolling out low-cost stores in small trade areas in regions where automobiles serve as the primary means of daily transportation, aiming to become part of local residents' everyday infrastructure. In FY2026 (ending March 2026), Yellow Hat opened 20 stores and closed 6, achieving a net increase of 14 stores, expanding the group total to 936 stores.
The company is building a system that seamlessly links product sales on its own e-commerce platform with in-store installation, improving convenience for both EC and store channels. It aims to expand customer choice through a broader product lineup and enhanced vehicle-specific products on EC, along with a strengthened lineup of affordable products in stores.
By integrating member information and POS data management, the company aims to provide product information tailored to customer needs at the appropriate timing, thereby improving the repeat rate of new members. Web-based service reservation volume grew to 157% year-on-year, driven by successful expansion of app functionality, including the addition of a same-day oil change reservation feature.
The company is strengthening the training and development of mechanics and inspectors to reinforce oil and tire replacement, installation services, and vehicle inspections. It is leveraging the regulatory revision from April 2025, which extended the eligible period for vehicle inspection applications to two months prior, to capture demand for vehicle inspections.
In the two-wheeler business comprising Ni Rinkan, Bike Kan, and Y's Road, the company is pursuing store count growth, facility upgrades, talent development, and expansion of existing-store profitability, aiming to offer total services combining Yellow Hat and the two-wheeler business. During the current period, the company built a two-wheeler-related network of 171 stores, including 28 Y's Road stores.
Last updated: July 19, 2026