Worth reading
59In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
570
¥100 million (consolidated net sales target for the fiscal year ending February 2028)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.0%
基準 2,027Target2,028Hundreds of millions of yen
Operating profit+0.0%
基準 2,027Target2,028Hundreds of millions of yen
Operating profit margin+1.0pt
基準 2,027Target2,028%
Net income for the current fiscal year+0.0%
基準 2,027Target2,028Hundreds of millions of yen
ROE+1.0pt
基準 2,027Target2,028%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planTargets for the fiscal year ending February 2026: consolidated operating margin of 3.0-4.0%, ROE of 4.0-5.0% and inventory turnover of 5.5-6.5 times. The targets for consolidated net sales, consolidated operating profit and net income attributable to owners of the parent were “-”. → Actual results for the fiscal year ended February 2026: consolidated net sales of ¥51,499 million, consolidated operating profit of ¥321 million, consolidated operating margin of 0.6%, net income attributable to owners of the parent of ¥366 million, ROE of 2.4% and inventory turnover of 4.0 times.+2,441.9%Calculated from the two disclosed figures
Investment amount by sectorField Expansion into other industries / Amount Joint investment of ¥15.0 billion / Conditions The Company's ownership stake will be 25%. Joint investment with JD.com in DB Capital Limited, a joint venture between JD.com and BJL
Statements about the use of capital
Payout ratio / DOE policyThe basic policy is to continue providing stable shareholder returns. The Company will continue to pay a dividend of ¥38 per share, excluding the COVID-19 pandemic period. The target levels and applicable period for the dividend payout ratio and DOE are not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Key initiatives
01Improve sales and profitability of core brands
02Rebuild AZUL BY MOUSSY
03Optimize apparel business operations and the supply chain across the Company
04Expand into other industries beyond apparel
05Capital allocation
06Shareholder Returns
07Strengthening human capital
08Sustainability: priority themes, initiatives and targets
09Sustainability roadmap and action plan
Plan assumptionsThe plan states that it is based on certain assumptions deemed reasonable, but specific numerical assumptions, including exchange rates, market growth rates and raw material prices, are not disclosed.
Non-financial targetsIndicator Disposal and incineration of all remaining unsold inventory / Target value ゼロ / Timing By fiscal 2030, Indicator Scope 1 and 2 CO2 emissions / Target value 50% reduction from fiscal 2023 / Timing By fiscal 2030, Indicator Scope 3 CO2 emissions per garment / Target value 20% reduction from fiscal 2023 / Timing By fiscal 2030, Indicator Percentage of garments made with environmentally friendly materials / Target value 50% or higher / Timing By fiscal 2030, Indicator Percentage of Female Managers / Target value Maintain at least 45% / Timing Not disclosed
Risks identified by the company
Changes in consumer behavior since the COVID-19 pandemic
Slowdown in China's economy
Recognition of losses from the Chinese joint venture
Decline in customer traffic at the core SC brand AZUL
Declining organizational productivity
An earnings structure highly dependent on the apparel business
Reason for revision or withdrawal
The previous medium-term management plan was revised in light of recent business performance. Sales stagnated due to a decline in customer traffic at AZUL, the Company's core domestic SC brand, and the targets of the previous plan were not achieved.
| Item | Details |
|---|---|
| Plan name | New Medium-Term Management Plan 2027-2028 |
| Plan period | Fiscal years ending February 2027 to February 2028 |
| Progress against the plan | Formulated |
| Sales Target | Actual for the fiscal year ended February 2026: ¥51.49 billion; full-year forecast for the fiscal year ending February 2027: ¥52.97 billion → Management target for the fiscal year ending February 2028: ¥57.0 billion（10.7% above the actual result for the fiscal year ended February 2026; 7.6% above the full-year forecast for the fiscal year ending February 2027） |
| Operating profit target | Actual for the fiscal year ended February 2026: ¥320 million; full-year forecast for the fiscal year ending February 2027: ¥1.35 billion → Management target for the fiscal year ending February 2028: ¥2.6 billion（712.5% above the actual result for the fiscal year ended February 2026; 92.6% above the full-year forecast for the fiscal year ending February 2027） |
| Operating profit margin target | Actual for the fiscal year ended February 2026: 0.6%; full-year forecast for the fiscal year ending February 2027: 2.6% → Management target for the fiscal year ending February 2028: 4.5%（650.0% above the actual result for the fiscal year ended February 2026; 73.1% above the full-year forecast for the fiscal year ending February 2027） |
| Net income target | Actual for the fiscal year ended February 2026: ¥360 million; full-year forecast for the fiscal year ending February 2027: ¥740 million → Management target for the fiscal year ending February 2028: ¥1.5 billion（316.7% above the actual result for the fiscal year ended February 2026; 102.7% above the full-year forecast for the fiscal year ending February 2027） |
| ROE target | Actual for the fiscal year ended February 2026: 2.4%; full-year forecast for the fiscal year ending February 2027: 5.1% → Management target for the fiscal year ending February 2028: 10.6%（341.7% above the actual result for the fiscal year ended February 2026; 107.8% above the full-year forecast for the fiscal year ending February 2027） |
| Payout ratio / DOE policy | The basic policy is to continue providing stable shareholder returns. The Company will continue to pay a dividend of ¥38 per share, excluding the COVID-19 pandemic period. The target levels and applicable period for the dividend payout ratio and DOE are not disclosed. |
| Investment amount by sector | Field Expansion into other industries / Amount Joint investment of ¥15.0 billion / Conditions The Company's ownership stake will be 25%. Joint investment with JD.com in DB Capital Limited, a joint venture between JD.com and BJL |
| Non-financial targets | Indicator Disposal and incineration of all remaining unsold inventory / Target value ゼロ / Timing By fiscal 2030, Indicator Scope 1 and 2 CO2 emissions / Target value 50% reduction from fiscal 2023 / Timing By fiscal 2030, Indicator Scope 3 CO2 emissions per garment / Target value 20% reduction from fiscal 2023 / Timing By fiscal 2030, Indicator Percentage of garments made with environmentally friendly materials / Target value 50% or higher / Timing By fiscal 2030, Indicator Percentage of Female Managers / Target value Maintain at least 45% / Timing Not disclosed |
| Plan assumptions | The plan states that it is based on certain assumptions deemed reasonable, but specific numerical assumptions, including exchange rates, market growth rates and raw material prices, are not disclosed. |
| Key initiatives | Improve sales and profitability of core brands, Rebuild AZUL BY MOUSSY, Optimize apparel business operations and the supply chain across the Company, Expand into other industries beyond apparel, Capital allocation, Shareholder Returns, Strengthening human capital, Sustainability: priority themes, initiatives and targets, Sustainability roadmap and action plan |
| Results under the previous plan | Targets for the fiscal year ending February 2026: consolidated operating margin of 3.0-4.0%, ROE of 4.0-5.0% and inventory turnover of 5.5-6.5 times. The targets for consolidated net sales, consolidated operating profit and net income attributable to owners of the parent were “-”. → Actual results for the fiscal year ended February 2026: consolidated net sales of ¥51,499 million, consolidated operating profit of ¥321 million, consolidated operating margin of 0.6%, net income attributable to owners of the parent of ¥366 million, ROE of 2.4% and inventory turnover of 4.0 times. |
| Reason for revision or withdrawal | The previous medium-term management plan was revised in light of recent business performance. Sales stagnated due to a decline in customer traffic at AZUL, the Company's core domestic SC brand, and the targets of the previous plan were not achieved. |
| Risks identified | Changes in consumer behavior since the COVID-19 pandemic, Slowdown in China's economy, Recognition of losses from the Chinese joint venture, Decline in customer traffic at the core SC brand AZUL, Declining organizational productivity, An earnings structure highly dependent on the apparel business |
| Publication date | 14 April 2026 |
Items this document does not state (8)
ROIC targetTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceTotal investment planSegment targetSize of the Target MarketDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company continued to post difficult results due to changes in consumer behavior since the COVID-19 pandemic and the slowdown in China's economy, including a decline in customer traffic at its core SC brands and losses from its Chinese joint venture. In addition, sales stagnated as customer traffic at AZUL declined, and the targets of the previous medium-term management plan were not achieved. The previous plan was therefore revised.
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