Revitalizing Apparel Sales Through Business-Strategy Rebuilding

「In the GPU server-related business, we have steadily pursued orders and deliveries for server projects for large-scale data centers, while working to expand our domestic and international sales and procurement networks and strengthen our delivery capabilities.」

「Under these circumstances, while concentrating management resources in growth areas such as the grid-scale battery business and the sales business for GPU server-related products, we will also focus on areas of the apparel business where the Group can demonstrate its strengths, under the policy of」

「In addition to our existing apparel and related-products business, we have advanced business development aimed at further increasing corporate value and strengthening our management foundation by launching new grid-scale battery storage and GPU server-related businesses.」

「Revenue will contract by 20% each year, while operating losses will improve by at least ¥50 million each year; profitability is targeted for FY2029.2.」

「Our Group transitioned to a holding company structure on 2 June 2025 and carried out a company split, specifically a newly established split, separating the business of selling select apparel and related products into Enshin株式会社 and the business of selling branded apparel and related products into 株式会社SPIC.」

「In addition to the matters described above under “1. Improving business earnings” and “2. Securing working capital,” we will transition to a holding company structure as our management structure to accelerate the Group's growth and business expansion and establish a stronger management foundation.」

「During the current interim consolidated accounting period, we advanced business diversification by making 株式会社ミヤマ, which operates a building maintenance business, a subsidiary and acquiring the business of the work-recording solution テモトル. Through these measures, we aim to improve our earnings structure.」

「Against this backdrop, the Group has implemented the measures set out below.」

「We have organized the business structure with the existing business as the First Business Division and the business absorbed during the current fiscal year as the Second Business Division.」

「• In the fiscal year ending February 2022, amid the continuing impact of COVID-19, we reduced our operating loss and ordinary loss by pursuing a thorough defensive management strategy, while achieving a net profit.\n• During the prolonged impact of COVID-19, we focused on products and EC businesses for which firm demand was expected, pursued a cash-focused strategy, and explored new areas, including M&A.」

「By adding チチカカ, which operates in the same industry, to the Group, we expect to improve performance through synergies such as stronger products and sales, mutual sharing of know-how, and cost reductions through the joint operation of administrative functions.」

「As part of our future growth strategy, on 28 February 2021 we entered into a share purchase agreement and decided to make 株式会社スピックインターナショナル a subsidiary from the next fiscal year. The company owns in-house planned brands and has strengths in sales channels in urban fashion buildings. For us, whose strengths lie in selling mid-priced apparel at suburban shopping malls, we consider the company an important management resource that will contribute to future growth.」

「The brands owned by 株式会社スピックインターナショナル, its in-house product planning capabilities, and its sales channels centered on fashion buildings in urban areas are valuable management resources that we do not currently possess. We believe that the synergies generated by combining the businesses will be substantial and contribute to future growth.」

「In response to circumstances in which company-wide sales growth could not be expected, we implemented defensive measures such as restraining product purchases while also taking the measures below to secure sales.」

「Against this backdrop, in response to a situation in which company-wide sales growth could not be expected, we pursued defensive measures such as curbing merchandise purchases. At the same time, we worked to secure sales by implementing the measures described below at our operating stores and elsewhere.」

「To address this situation, we will work on the following issues: further strengthening existing businesses, developing new businesses, and pursuing capital and business alliances that generate synergies.」

「Amid this business environment, under the theme of further strengthening our existing businesses, we implemented the following sales and product initiatives with the aim of expanding our business. As a result, company-wide sales for the first six months of the current fiscal year were 101.4% of the previous year's level, based on individual financial statements, while same-store sales were 107.5%. Both exceeded the previous year.」

「From the fiscal year ending February 2020, we established the following policies with a view to medium- to long-term growth and have been working to expand earnings capacity: 1) further strengthening existing businesses; 2) launching trials of new businesses; 3) promoting capital and business alliances, including with partners where synergies are expected; and 4) upgrading functions and capabilities that contribute to diversifying our business formats.」

「With recovery in performance as an imperative, we established the following 7 initiatives as our broad improvement policy and have been advancing them since March: creating attractive stores and visual merchandising, strengthening CRM, refining merchandising, making strategic supplier selections, thoroughly reducing costs, accelerating the disposal of inventory from prior fiscal years, and expanding the EC business.」

「Under the new organizational structure, we established the following 7 initiatives as our broad improvement policy and have been advancing them since March: creating attractive stores and visual merchandising, strengthening CRM, refining merchandising, making strategic supplier selections, thoroughly reducing costs, accelerating the disposal of inventory from prior fiscal years, and expanding the EC business. As a result, same-store sales for the first six months of the current fiscal year were 104.2% of the previous year's level, and performance has progressed in line with the plan.」

「During the previous fiscal year, we carried out restructuring centered on store closures and employee reductions, and advanced reforms aimed at an early recovery in performance. As a result, sales for the fiscal year were 80.3% of the previous year's level, while same-store sales were 94.9%. Although improvement is steadily progressing, we did not achieve the targeted early recovery in performance.」

「Against this backdrop, at the end of the previous fiscal year we carried out restructuring centered on store closures and employee reductions, and advanced reforms aimed at an early recovery in performance. As a result, consolidated sales for the first nine months of the current fiscal year were 79.3% of the previous year's level, while same-store sales were 93.7%. Although same-store sales fell below the previous year, quarterly performance entered a recovery trend from the second quarter onward, despite the difficult first quarter. Same-store sales have remained above the previous year since August.」

「Against this backdrop, at the end of the previous fiscal year we carried out restructuring centered on store closures and the early retirement of employees, and from the current fiscal year we began reforms under a new organizational structure aimed at an early recovery in performance. However, during the first quarter accounting period (March to May), we prioritized disposing of inventory at closed stores, and some of the costs associated with early retirement were also carried forward. As a result, tangible improvement was not seen until June onward. Consequently, performance struggled during the first quarter accounting period (March to May), while improving during the second quarter accounting period (June to August).」

「We will pursue a company-wide initiative focused on rebuilding our business strategy. Alongside restoring our core apparel sales business, we will work to improve performance by expanding the launch of products in new categories such as general merchandise and strengthening online sales.」