CHARLE CO., LTD.
9885・Standard Market・Wholesale Trade
Business
Charle Co., Ltd. is a listed company headquartered in Kobe City, founded in 1975. In its core ladies' inner wear business, the company primarily conducts door-to-door sales through home-party-style fitting sessions led by business members, offering clothing, cosmetics, and health foods to female consumers. In May 2025, the company made Onyone Corporation a subsidiary, adding a sportswear business (ski wear, outdoor wear, etc.), and also manufactures and sells shower heads and other products utilizing ultra-fine bubble technology through its subsidiary TKS. Consolidated net sales for FY2026 (ending March 2026) were ¥12,932 million, with the ladies' inner wear business accounting for approximately 82% of sales.
Business Model
The core ladies' innerwear business employs a direct-sales model that delivers products to consumers through a multi-tiered sales network of agencies, franchised distributors, and business members. Apparel, cosmetics, and health foods manufactured at partner factories in Japan and overseas are sourced and sold via fitting-session-style events, ensuring high levels of customer contact. E-commerce mail-order sales serve as a complementary channel, and the company is currently promoting a shift toward hybrid sales combining direct sales with e-commerce. The sportswear business is centered on made-to-order production, while the fine bubble business employs a sales structure combining mass merchandisers, B2B, and e-commerce.
Company Strengths
Since its founding in 1975, the company has built a multi-tiered sales network of agents, specialty distributors, and business members nationwide. In FY2026 (ending March 2026), the number of newly developed specialty distributors continues to exceed the prior year, and the customer touchpoints and sales infrastructure accumulated over decades of operation constitute a unique asset that is difficult to replicate in the short term.
The equity ratio at the end of FY2026 (ending March 2026) was 76.5% (down from 87.5% at the end of the prior fiscal year, but still at a high level). Against total assets of ¥16,947 million, the company maintained net assets of ¥13,023 million, preserving a nearly debt-free financial base even after recording a large impairment loss. This ensures the company has secured the own funds necessary to advance its business structural reforms.
Through the acquisition of shares in Onyone Corporation in May 2025, the company newly added a sportswear business (net sales of ¥1,816 million, segment profit of ¥186 million), gaining a revenue source that complements the sluggish profitability of its core women's innerwear business. The sportswear business is centered on made-to-order production with low inventory risk, and growth in sales of recovery-wear-related products has also been confirmed.
ENVALITH's Perspective
Performance Trend
Net sales increased to ¥12,932 million (up 12.0% year on year) due to the consolidation effect of Onyone, but the existing ladies' innerwear business continued to decline, falling to ¥10,656 million (down 3.8% year on year). Operating loss widened to ¥1,115 million (vs. ¥961 million loss in the prior period), and ordinary loss widened to ¥1,049 million (vs. ¥934 million loss in the prior period). Extraordinary losses included an impairment loss of ¥2,348 million, a loss related to voluntary product recall of ¥82 million, and a warehouse closure loss of ¥62 million, causing net loss attributable to owners of parent to expand sharply to ¥3,544 million (vs. ¥1,012 million loss in the prior period). In terms of the external environment, rising raw material and energy prices and consumers' entrenched thrift mindset have both pushed up cost of sales and dampened demand. The five-period trend in operating profit (¥1,704 million → ¥251 million → ¥557 million → -¥961 million → -¥1,115 million) shows a brief recovery in FY2024 (ended March 2024) followed by renewed deterioration.
Growth Strategy
Promoting business structural reform under "Charle Group Vision 2035", aiming to return to profitability in FY2027 (ending March 2027)
Promoting expansion of the sales mix of high-margin merchandise, discontinuation of low-profit items, and launch of jointly developed products with group companies. In FY2026 (ending March 2026), new products such as the health food "Lumiora" were launched, but gross profit declined year on year due to weak apparel sales and an increase in inventory valuation losses.
Promoting a review of merchandise procurement methods through the search for new suppliers and production countries, as well as reducing inventory losses by improving demand forecasting accuracy. In FY2026 (ending March 2026), an increase in inventory valuation losses due to weak sales has been putting pressure on profits, making improvement of inventory management an urgent priority.
Decided to consolidate two outsourced distribution centers into a single nationwide site. A warehouse closure loss of ¥62 million was recorded as an extraordinary loss in FY2026 (ending March 2026). After the transition is completed (planned around the end of 2026), reductions in fixed logistics costs are expected.
Onyone Corporation was made a subsidiary in May 2025, and the sportswear business was added as a new segment. In FY2026 (ending March 2026), the segment recorded a segment profit of ¥186 million, contributing to overall profitability. Going forward, the company aims to realize synergies by introducing health-related products through its own sales channels, as well as to expand into overseas markets and capture inbound demand.
Positioned as one of the measures addressing going-concern considerations, the company continues to promote digitalization of internal administrative operations, the use of AI, and workload reduction through the consolidation of internal functions and systems. Optimization of customer service, including the consolidation of order-taking and order-placing systems, will also be pursued in parallel.
Last updated: July 19, 2026