WATT MANN CO.,LTD.
9927・Standard Market・Retail Trade
Business
Watman Co., Ltd. is a Kanagawa-based retail company founded in 1978. After transitioning from home appliance sales, it now operates two businesses: the reuse business (60 domestic stores and a Thai subsidiary) and the new-product EC business (subsidiary Hobby Search). In the reuse business, it concentrates six formats—Watman Tech, Style, BOOKOFF, Kauman, Watman Hobby/GS, SPO&CAM, and Watman Camera—within Kanagawa Prefecture, with "Tokoton Kaitori" (thorough buyback) as the core of its competitiveness. In the new-product EC business, it sells hobby items such as models and figures on its proprietary EC site, leveraging an industry-leading product lineup and SEO-driven customer acquisition as strengths. Consolidated net sales for FY2025 (ended March 2025) were ¥8,383 million. Listed on the TSE Standard Market.
Business Model
In the reuse business, the company purchases goods from consumers, cleans and merchandises them, and sells them in-store under a low-price, high-turnover model, securing a gross profit margin of 45.3% (FY2025, ended March 2025). Merchandise that is difficult to recirculate domestically is channeled to overseas markets through the Thai subsidiary, supplementing purchasing capacity. The new-item EC business (Hobby Search) sells new hobby products sourced from wholesalers via the company's own EC site, recording purchases of ¥2,626 million and sales of ¥3,090 million. Combined purchases for the two businesses total ¥4,713 million.
Company Strengths
Since its founding in 1978, the company has continued a dominant strategy of concentrated store openings in Kanagawa Prefecture. As of June 2025, it operates 60 stores and one distribution center domestically, accumulating customer awareness and know-how for selecting candidate store locations. It continues to deepen its market area through repeated relocations, floor space expansions, and spin-offs of new business formats.
To strengthen purchasing power (sourcing capability), the source of competitive advantage in the reuse business, the company has established the "Tokoton Kaitori" (thorough buying) system. It functions as a mechanism to promote inflow of customers selling items and prevent customer attrition, forming the revenue base supporting FY2025 (ended March 2025) reuse business sales of ¥5,294 million and segment profit of ¥805 million.
Subsidiary Hobby Search has built a proprietary e-commerce site with strong SEO capabilities, leveraging its vast product information. In FY2025 (ended March 2025), new-item EC business sales reached ¥3,090 million (up 5.5% year on year), while hobby product purchasing results reached ¥2,626 million (up 11.8% year on year), maintaining an expansionary trend.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥5,409 million in FY2022 to ¥8,690 million in FY2026. However, operating profit peaked at ¥649 million in FY2024, then declined for two consecutive periods to ¥584 million in FY2025 and ¥482 million in FY2026. In FY2026, revenue increased but profit declined due to a combination of factors: initial costs associated with accelerated new store openings and scrap-and-build in the reuse business during the fourth quarter (including the opening of 4 spin-off format stores and 4 general reuse format stores), as well as, in the Hobby Search business, a decline in overseas sales due to additional US tariffs, head office relocation, e-commerce site renewal, and increased staffing costs. In extraordinary income and losses, compensation received of ¥213 million (extraordinary income) and tender offer-related expenses of ¥121 million (extraordinary loss) were recorded, and net income for the period turned to growth, reaching ¥388 million (up 12.5% year on year). As an external factor, US tariff measures are adversely affecting overseas sales in the new-product e-commerce business, and this remains an uncertain factor going forward.
Growth Strategy
Acceleration of reuse business store openings, strengthening of Hobby Search, and enhancement of corporate value in the non-listed environment following the MBO
From Q4 onward, the company proceeded with the opening of 4 spin-off format stores and 4 comprehensive reuse format stores, actively opening and closing stores including those planned to open in the following fiscal year. Initial costs weighed on current-period profit, but revenue contribution is expected from the following fiscal year onward.
The company expanded promotional activities including headquarters relocation response, e-commerce site renewal, personnel reinforcement, and exhibition participation. Domestic sales were strong (net sales up 7.2% year on year), but segment profit declined significantly to ¥49 million (down 63.2% year on year) due to increased expenses. The business is in an investment phase aimed at improving medium- to long-term profitability.
The company is actively considering M&A and proceeding with information gathering and due diligence on potential deals, but no deal was concluded in the current period. Following the completion of the MBO, the policy is to build an organizational and personnel structure utilizing the experience, track record, and management know-how of IAPF3 Co., Ltd.
The MBO by IAPF3 Co., Ltd. was completed in April 2026. The company will proceed with building an organizational and personnel structure that supports sustainable enhancement of corporate value, leveraging the tender offeror's extensive experience, track record, personnel, and management know-how. Delisting is scheduled for June 19, 2026.
Last updated: July 17, 2026