Can direct mail and fulfillment lead growth in FY2027?

In FY2027-Q1, consolidated revenue was ¥8,298 million and operating profit was ¥299 million, up 57.3% and 198.0%, respectively, year on year. By segment, the direct mail business generated revenue of ¥7,635.707 million and segment profit of ¥475.985 million, accounting for almost all of the group’s growth in revenue and profit. Year-on-year growth was also substantial, at 64.5% for revenue and 100.2% for profit, indicating that the growth pace accelerated from FY2026 full-year revenue of ¥23,164.949 million and segment profit of ¥1,526.055 million.

By contrast, in the same FY2027-Q1, the internet business generated revenue of ¥233.990 million and segment profit of ¥12.463 million, while the apparel business generated revenue of ¥396.548 million and segment profit of ¥20.541 million. Accordingly, when evaluating the group’s profit growth, it is necessary to distinguish the continuing concentration of the contribution in the direct mail business from balanced growth across the three businesses. Revenue from existing and new customers in the direct mail business, the number of large-scale projects, and revenue from fulfillment services alone were not broken out in the numerical disclosures available this time.

The company continues to expand its one-stop services, consultative sales, online ordering and fulfillment services, and the number of counterparties in the direct mail business had increased to 5,746 by the end of FY2026. It also opened the Hachioji No. 6 Fulfillment Center in June 2025, expanding its site network. However, utilization at the new site, processing volume per site, fulfillment gross margin and cost differences from existing sites have not been disclosed. Whether the expansion of the site network is contributing not only to revenue growth but also to profit growth will therefore be a point to verify in FY2027-H1.

The FY2027 full-year forecast is revenue of ¥27,500 million and operating profit of ¥1,100 million, with Q1 progress of 30.2% for revenue and 27.2% for operating profit. Rather than simply annualizing Q1’s strong performance, it is necessary to verify whether revenue reaches around ¥13,750 million and operating profit around ¥550 million by H1, and whether this is driven by continued growth in online ordering and fulfillment rather than a reversal of large-scale projects. At the next earnings release, the most important additional information will be disclosure of revenue, gross profit and utilization rates separately for direct mail dispatch, fulfillment and online ordering.