Verite Co.,Ltd.
9904・Standard Market・Retail Trade
Business
Verite Co., Ltd., founded in 1948 and listed on the Standard Market of the Tokyo Stock Exchange, is a specialty jewelry chain. The company operates multiple formats, including Verite, Maharaja Diamond, MIMIKAZARI, and Velicia, running a total of 108 stores as of the end of FY2026 (ending March 2026). The flagship Verite brand has expanded nationwide, mainly through in-store locations in station buildings and shopping centers, offering a wide range of jewelry products including diamond rings, necklaces, and accessories. In September 2025, Senko Group Holdings Co., Ltd. became the parent company, and the business is being advanced under a new management structure.
Business Model
The business model is based on multi-store chain expansion utilizing leased stores, with sales opportunities expanded through new store openings and renovation investments. Products such as diamond rings, necklaces, and accessories are sourced in-house, with customer spend per transaction increased by differentiating through service technique and product development capability. Of the ¥9,441 million in net sales for FY2026 (ending March 2026), accessories and other jewelry constituted the largest category at ¥4,660 million, and customer spend per transaction is on an upward trend, up 10.0% year on year.
Company Strengths
Founded in 1948 and listed in 1991 as a pioneer jewelry chain, the company operates 108 stores nationwide, comprising 90 Veritè stores, 12 Velicia stores, 3 Maharaja Diamond stores, 2 MIMIKAZARI stores, and 1 verite store. The location-selection and chain-operation know-how accumulated through years of multi-store operations constitutes a proprietary asset that competitors find difficult to replicate in a short period.
In FY2026 (ending March 2026), average customer spend rose significantly, up 10.0% year on year on an all-store basis and up 12.6% on an existing-store basis. Sales in the jewelry and other gemstone category reached ¥4,660 million (134.0% year on year), the largest growth among all categories, with the shift toward a higher-value-added product mix contributing to improved profit structure.
As of the end of FY2026 (ending March 2026), cash and cash equivalents stood at ¥3,060 million, and the interest coverage ratio remained at a high level of 27.0x. The company has secured commitment lines totaling ¥2,500 million, comprising ¥1,200 million from MUFG Bank, ¥800 million from Mizuho Bank, and ¥500 million from Sumitomo Mitsui Trust Bank, giving it a financial foundation capable of flexibly funding store openings and working capital needs.
ENVALITH's Perspective
Performance Trend
Revenue grew from ¥7,270 million in FY2022 to ¥9,441 million in FY2026, a +29.9% increase over five fiscal years, with FY2026 accelerating to +18.8% year-on-year. However, operating profit peaked at ¥932 million in FY2023 before declining to ¥700 million in FY2026, and net income plunged -43.4% from ¥569 million in FY2025 to ¥322 million in FY2026. Contributing factors were: (1) a sharp increase in SG&A expenses (+¥934 million), (2) extraordinary losses of ¥143 million, including ¥92 million in tender offer-related expenses and ¥38 million in impairment losses, and (3) the absence of the ¥64 million gain on sale of investment securities recorded in the prior period. In the external environment, expanding inbound demand and the entrenchment of wage increases pushed up revenue, while rising costs squeezed profits.
Growth Strategy
Simultaneous improvement in net sales and gross margin through multi-brand store network expansion and strengthened product and customer service capabilities
Plans to expand Verite to 95 stores (+5) and Velicia to 13 stores (+1) by the end of FY2027 (ending March 2027). Through openings in locations that capture inbound and affluent-customer demand, the company aims to expand sales opportunities and achieve 2.7% net sales growth (¥9,694 million).
Continuously driving increases in average customer spending and improvements in gross margin through higher-quality customer service skills and stronger, more appealing product development capability. In FY2026 (ended March 2026), although net sales increased significantly, the gross profit margin declined from 69.2% in the prior period to 66.3%, making procurement cost management and product mix improvement key challenges.
At the Board of Directors meeting on May 13, 2026, the dividend policy was revised, shifting from an active dividend policy toward an emphasis on "strengthening retained earnings and financial stability." The projected dividend for FY2027 (ending March 2027) was significantly lowered to ¥6.00 per share (payout ratio of 38.9%), aiming to strengthen the financial foundation for future business development.
Last updated: July 19, 2026