Networking of the media market and expansion of the reuse market

「In the domestic Second Street business, reuse apparel and fashion accessories, which form the core of the product mix, remained solid throughout the fiscal year. Luxury sales were ¥57,595 million, down 1.1% year on year. Sales of new merchandise were ¥124,333 million, up 25.5% year on year.」

「Total sales of media-related reuse products were ¥41,922 million, up 3.2% year on year. Regarding new products, sales of game-related products, including the next-generation home game console Nintendo Switch 2, released in June 2025, and its peripherals remained strong, with revenue reaching ¥53,270 million, up 19.7% year on year.」

「Total sales of reuse-related products increased substantially, with revenue rising 12.1% year on year to ¥190,246 million. Total sales of media-related reuse products rose 12.4% year on year to ¥83,669 million. Regarding new products, sales of trading cards and capsule toys remained strong, but unlike the previous fiscal year, when increased sales of home game consoles following improved supply-demand conditions and the release of major titles drove revenue growth, the current fiscal year was significantly affected by the resulting reactionary decline. Revenue fell 25.1% year on year to ¥99,100 million.」

「Total sales of reuse-related products increased 10.9% year on year to ¥87,324 million, supported by the continued expansion of demand for reuse and the company's broader global presence. Total sales of media-related reuse products increased 19.3% year on year to ¥40,616 million. Regarding new products, revenue declined 40.1% year on year to ¥44,492 million because of a substantial reaction to the previous year's strong sales of home game consoles and the release of major new titles through the previous interim consolidated accounting period.」

「OKURA TOKYO, which handles reuse luxury products, continued to perform well, mainly in retail sales. Demand for reuse continued amid the spread of changes in consumers' consumption patterns, and domestic and overseas 2nd STREET stores performed well. As a result, total sales of reuse-related products increased.」

「Retail sales at OKURA TOKYO, which handles reuse luxury products, performed well, benefiting from inbound demand. Reuse apparel and fashion accessories, the core of the product mix, also benefited from continued consumer demand for reuse, and both purchases and sales at 2nd STREET performed well. As a result, total sales of reuse-related products increased.」

「Reuse apparel and fashion accessories exceeded expectations as demand for reuse products increased as a means of managing household finances amid rising prices, while changes in consumption patterns and greater awareness made reuse one of consumers' purchasing options. As a result, total sales of reuse-related products increased.」

「Although sales of reuse luxury products fell below expectations, demand for reuse apparel and fashion accessories increased as a means of managing household finances amid rising prices. In addition, changing attitudes reduced resistance to buying reuse products, and performance exceeded expectations. As a result, total sales of reuse-related products increased.」

「Regarding reuse-related products, economic activity, which had stagnated because of COVID-19, recovered sooner than initially expected. However, the full recovery of inbound demand took time, and sales of reuse luxury products fell below expectations. Meanwhile, demand for reuse apparel and fashion accessories increased as a means of managing household finances amid rising prices, exceeding expectations. As a result, total sales of reuse-related products increased.」

「Regarding reuse-related products, the "Golden Week Sale," held as customer numbers and average spend per customer rose following the full lifting in late March of the priority preventive measures to prevent the spread of COVID-19, contributed to higher sales, particularly of reuse apparel. Sales remained strong after the sale ended, and total sales of reuse-related products increased. Regarding rental products, sales declined as streaming services spread and the rental market contracted.」

「2nd STREET, whose core business is reuse apparel, was heavily affected by requests to refrain from going out, but sales recovered from the second half onward as sentiment around such restrictions eased. Reuse luxury products also continued to perform well in overseas wholesale, including luxury watches, amid strong overseas markets.」

「2nd STREET, whose core business is reuse apparel, was heavily affected by requests to refrain from going out, but sales recovered as sentiment around such restrictions eased. Reuse luxury products also continued to perform well in overseas wholesale, including luxury watches, amid strong overseas markets.」

「2nd STREET, whose core business is reuse apparel, was heavily affected by requests to refrain from going out, but began to show signs of recovery as restrictions were eased. Reuse luxury products also performed well in overseas wholesale, including luxury watches, amid strong overseas markets.」

「For rentals, whose main products are video rentals such as DVDs, stay-at-home demand following requests to refrain from going out contributed to results in the first quarter of the previous fiscal year. In the first quarter of the current fiscal year, however, the shortage of new titles continued because of the postponement of theatrical film releases and other factors carried over from the previous fiscal year, resulting in a substantial decline in revenue. The company expects this declining trend to continue for the foreseeable future, partly because of the spread of video-streaming services.」

「Rental 50,727 87.5%; reuse products: media-related 53,889 96.1%; reuse-related 76,845 116.0%; new 102,902 122.3%」

「Stay-at-home demand for rentals contracted rapidly from June. Combined with shortages of new releases during the pandemic, this caused the declining trend in the video-rental market to accelerate.」

「Stay-at-home demand for rentals contracted rapidly from June, and rental revenue in the second quarter fell below the previous year's level. In merchandise sales, new products, mainly game consoles with low gross margins, drove revenue only. Reuse-related products, particularly those sold through 2nd STREET, were also affected by requests to refrain from going out, and the decline in customer visits and items brought in for purchase continued, resulting in continued weakness, especially in core reuse apparel.」

「Under these conditions, the Group's revenue increased despite a decline in reuse-related products, mainly those sold through 2nd STREET, due to store closures, reduced operating hours and requests to refrain from going out. Revenue benefited from a temporary increase in demand for video rentals as people stayed at home, the growth of new products following the major success of the Nintendo Switch game software title "Animal Crossing: New Horizons," and solid performance by media-related reuse products.」

「Reuse-oriented stores led by 2nd STREET benefited from continued growth in the reuse market and solid same-store sales. Revenue also increased through a larger store network from new openings and the consolidation effect of 株式会社おお蔵, acquired during the current fiscal year and engaged in wholesale of reuse products such as luxury watches and brand-name bags. As a result, reuse-related reuse grew to a scale at which its revenue exceeded that of media-related reuse.」

「GEO, which the company classifies as a media-oriented store, continued to face a declining market for rentals, whose main products are video rentals such as DVDs. New products, whose main products are game software, contributed to revenue during the third quarter following the release of a new title in Nintendo's major Pokémon series, but revenue from media-related reuse products remained at approximately the previous year's level. Meanwhile, reuse-oriented stores, led by 2nd STREET, continued to open new stores, and reuse-related reuse grew to a scale at which its revenue exceeded that of media-related reuse.」

「For rental products, primarily video rentals such as DVDs, the market's declining trend continued. Media-related reuse, whose main products are game software, also remained sluggish. Meanwhile, same-store sales at 2nd STREET remained solid, and reuse-related reuse grew to the point where its revenue exceeded that of media-related reuse.」

「During the first quarter of the current consolidated fiscal year, the Group maintained revenue at approximately the same level as the previous year despite the continuing decline in video rentals and a period with few major game-title releases. This reflected active promotional activities, including television commercials, and solid same-store sales at 2nd STREET, which continued from the previous fiscal year.」

「The estimated size of the reuse market, excluding automobiles and motorcycles, business-to-business transactions and other categories, grew steadily from ¥1.88 trillion in 2016 to ¥2.1 trillion in 2017. Meanwhile, the declining trend in the in-store video-rental market, the Group's original business, has continued.」

「During the first nine months of the current consolidated fiscal year, revenue fell below the previous year as the contraction in rental products continued and this was compounded by the reaction to the previous year's period of increased sales of new game consoles and other products. Meanwhile, despite the spread of flea-market apps and increased buying and selling by online-only operators using smartphone apps and other services, the reuse market continued to expand, and purchases and sales of reuse products, particularly clothing and apparel, remained strong.」

「During the first six months of the current consolidated fiscal year, the business environment remained favorable for the reuse market, with continued growth driven by the spread of flea-market apps and increased buying and selling by online-only operators using smartphone apps and other services.」

「During the first quarter of the current consolidated fiscal year, the Group's revenue reached a record high for the fifth consecutive fiscal year. This reflected strong sales and purchases accompanying the expansion of the reuse market, as well as the planned progress of new-store openings for the comprehensive reuse shop 2nd STREET.」

「During the first nine months of the current consolidated fiscal year, the contraction in rental products continued and rental revenue declined. However, new game-related products, led by Nintendo Switch, drove revenue significantly during the year-end peak season, while reuse products, particularly clothing and apparel, also performed solidly, enabling revenue to reach a record high for the period.」

「During the first six months of the current consolidated fiscal year, rental products remained sluggish, but new products made a significant contribution to revenue as a result of hit titles in the game category. In addition, reuse products, particularly clothing and apparel, performed well, enabling revenue to reach a record high for the period.」

「During the first quarter of the current consolidated fiscal year, the Group's results were affected by sluggish performance in the rental division. However, new products related to Nintendo Switch, released in March, contributed to revenue, while reuse products, particularly clothing and apparel, also performed well, enabling revenue to reach a record high for the period despite only a slight increase.」

「For media shops, video streaming, which has led overseas markets, has also gained momentum in Japan. As more companies enter the market and competition intensifies, the diversification of customers' options for spending their time, driven by smartphones and other factors, is also accelerating the market's shift from the packaged software industry to the network industry. Meanwhile, the reuse-shop market is estimated to have exceeded ¥1.6 trillion amid the growth of person-to-person transactions and online sales. As the market continues to expand, awareness of reuse is increasing further, and steady growth is expected.」

「New products performed steadily, but revenue declined slightly because of the substantial drop in rental products during the second quarter consolidated accounting period. Profit also benefited from solid growth in used mobile phones, reuse-related products, and new products such as game consoles and game software, but the performance of other products was not enough to offset the decline in rental products.」

「During the first six months of the current consolidated fiscal year, the Group's results were supported by solid performance across all product categories except rental products, led by reuse-related products. However, the substantial decline in rental products caused by the Olympics held during the second quarter accounting period resulted in lower revenue.」

「During the first quarter of the current consolidated fiscal year, the Group's results were affected by sluggish performance in the rental division. However, new products, including game software, and reuse products, particularly clothing and apparel, performed well, enabling revenue to reach a record high for the period, despite only a slight increase.」

「For media shops, video streaming, which has led overseas markets, is expected to gain momentum in Japan. In addition, the diversification of customers' options for spending their time, driven by the rise of smartphones and other factors, is accelerating the market's shift from the packaged software industry to the network industry. Meanwhile, the reuse-shop market has exceeded ¥1.5 trillion amid the growth of person-to-person transactions and online sales. As the market continues to expand, awareness of reuse is increasing further and growth is accelerating.」