Enhancing corporate value under the 2019–2021 new three-year medium-term plan

「Based on the “New Medium-Term Management Plan,” announced on 8 May 2026 and beginning in fiscal 2026, the Group is accurately identifying issues that have emerged through its business operations to date and reviewing its earnings structure and strengthening its management base. It has set targets of ¥11.0 billion in revenue and ¥234 million in operating profit for fiscal 2028, the final year, and aims to rebuild a sustainable earnings base for growth.」

「Against this backdrop, the Group is working to expand revenue and earnings by steadily implementing the basic policies of the new three-year medium-term management plan, whose final year is fiscal 2025. Progress on each initiative is as follows.」

「In the apparel industry, which is reaching a turning point, the Group is reviewing its business strategy, considering new businesses and taking measures to increase earnings by strengthening BtoC. It aims for revenue of ¥15.0 billion and ordinary profit of ¥430 million in fiscal 2025, the final year of its medium-term management plan, while working to restore performance and stabilize its revenue base.」

「In the apparel industry, which is reaching a turning point, the Group is reviewing its business strategy, considering new businesses and taking measures for its next phase of growth. It aims for revenue of ¥15.0 billion and ordinary profit of ¥430 million in fiscal 2025, the 74th fiscal year and two years from now, while working to restore performance and stabilize its revenue base.」

「In addition to aiming to expand sales and restore earnings, the Company is steadily implementing initiatives under the new three-year medium-term management plan launched in fiscal 2023. Along with higher revenue, earnings have also shifted toward profitability. Progress against the basic policies of the new three-year medium-term management plan launched in fiscal 2023 is as follows.」

「The Company is moving toward recovery by steadily implementing the new three-year medium-term management plan launched in fiscal 2023.」

「The three-year medium-term management plan launched in fiscal 2022 was rolled forward by 1 year, and the Company aims to restore performance in the post-COVID period by implementing a new three-year medium-term management plan beginning in fiscal 2023, which is the 72nd fiscal year.」

「The progress made against the basic policies of the three-year medium-term management plan launched in fiscal 2022 is as follows. In the department-store channel, the Company continued to focus on developing dedicated sections and shops for the CHOYA brand. It implemented measures to expand sales, including opening the second “CHOYA SHIRT SHOP” in the menswear section of Keio Department Store. As a result, revenue from ready-made dress shirts was 126% of the previous year’s level and gross profit was 127%, while revenue from made-to-measure shirts was 112% and gross profit was 120%, respectively, maintaining an upward trend in both revenue and gross profit.」

「The progress made against the basic policies of the three-year medium-term management plan launched in fiscal 2022 is as follows. Following spring/summer 2022, ODM and OEM orders for fall/winter 2022 and spring 2023 also continued to trend upward, and the Company’s factories and partner factories in Japan and overseas continued operating at full capacity. The GERRY casualwear brand launched during the current fiscal year also continued to receive orders steadily.」

「To address this situation, under the slogan “FANFUN150” for the three-year medium-term management plan launched during the current fiscal year, we will implement three basic policies: building original brands, increasing earnings by strengthening B2C operations, and developing new products and expanding sales in the dresswear, casualwear, women's and uniform businesses. Through these efforts, we will work to achieve further recoveries in sales and earnings.」

「In January 2022, the Company announced the Yamaki Phoenix Plan “FAN FUN150,” its medium-term management plan. During the three-year period, it will give top priority to expanding BtoC sales, including online sales, particularly by building original brands. Initiatives include developing “SWAN” through shop-in-shop locations, with a focus on mass retailers, and creating dedicated sections and shops for the “CHOYA” brand, mainly in department stores, while actively developing an omnichannel model integrating online sales.」

「The Group formulated a new medium-term management plan for fiscal 2019 through fiscal 2021. In the apparel industry, which is reaching a turning point, it is reviewing its business strategy and considering new businesses. It plans to formulate by the end of September 2021 the next three-year medium-term management plan for fiscal 2022 through fiscal 2024, take measures for the next phase of growth in anticipation of the end of the pandemic, build a revenue base and stabilize performance.」

「The Group regards changes in the economic environment, lifestyles and Japan’s domestic retail market resulting from the COVID-19 pandemic as a Chance to shift toward its next growth strategy. Under the slogan “Chance, Challenge, Change,” it is undertaking various initiatives to take on the Challenge and bring about Change.」

「The targets for the final year, fiscal 2021, are consolidated revenue of ¥17.0 billion, consolidated net income of ¥150 million, return on equity (ROE) of 2.31% and consolidated interest-bearing debt of ¥4.3 billion.」

「The Group formulated a new three-year medium-term plan for 2019 through 2021 as its next growth strategy. Amid changes in the economic environment, lifestyles and Japan’s domestic retail market, it aims to enhance corporate value further under the basic policy that “there is no future without evolution,” by shifting to a retail-oriented sales management structure, further strengthening its manufacturer functions, including planning, operations and production, and establishing a structure to strengthen overseas sales.」