AOYAMA TRADING Co., Ltd. (8219): FY2025 Results Summary — Profit Falls Short of Plan as Suit Sales Decline

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: AOYAMA TRADING’s fiscal year ends in March. The results discussed below are for the fiscal year ended March 31, 2026, which the company’s own presentation labels “FY3/2026”; this site refers to the most recently completed fiscal year across companies as “FY2025” for consistency, but the figures, tables and segment labels in this article retain the company’s original FY3/2026 / FY3/2027 wording exactly as reported.

AOYAMA TRADING Co., Ltd., which operates the Yofuku-no-Aoyama and SUIT SQUARE business-wear store chains together with a group of franchise, credit card, repair-service, printing and real estate businesses, reported consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) that fell short of its revised full-year plan at every profit line. Consolidated net sales came to 189,011 million yen (96.6% of the FY3/2025 level), operating income came to 10,588 million yen (84.2% of the prior year), and net income attributable to owners of the parent came to 6,918 million yen (73.6% of the prior year), as a decline in the number of men’s suits sold weighed on the core Business Wear segment even as most of the company’s other group businesses grew both sales and profit. For the fiscal year ending March 31, 2027 (FY3/2027), the company forecasts a rebound, with net sales of 194,700 million yen (103.0% of FY3/2026), operating income of 11,700 million yen (110.5%) and net income of 7,600 million yen (109.9%). The company also carried out a 3-for-1 stock split of its common shares effective April 1, 2026.

Consolidated Results (FY3/2026 Actual)

AOYAMA TRADING’s FY3/2026 results came in below the company’s revised full-year plan across net sales and every profit line. Per the presentation, although the company worked across all business segments to improve gross profit margin and control SG&A expenses, this was not enough to offset weak non-consolidated (parent-company, Business Wear-driven) net sales, resulting in the shortfall against the revised plan. Consolidated gross profit margin improved 0.5 percentage points year on year to 51.9%, though this was 0.7 points below the revised plan, and net income per share fell to 47 yen 95 sen from 63 yen 44 sen a year earlier.

Item (Million Yen)	FY3/2025 Results	FY3/2026 Revised Plan	FY3/2026 Results	YoY / Margin Change	vs. Revised Plan
Net sales	195,714	197,000	189,011	96.6%	-7,988
Gross profit (margin)	100,586 (51.4%)	103,600	98,172 (51.9%)	+0.5pt (margin)	-5,427
SG&A expenses	88,013	89,600	87,583	99.5%	-2,016
Operating income	12,573	14,000	10,588	84.2%	-3,411
Ordinary income	12,628	14,000	10,919	86.5%	-3,080
Net income attributable to owners of the parent	9,397	9,500	6,918	73.6%	-2,581
Net income per share	63 yen 44 sen	65 yen 21 sen	47 yen 95 sen	–	–

On a non-consolidated basis, which mainly reflects the Business Wear segment operated directly by the parent company, net sales fell to 122,169 million yen from 131,015 million yen a year earlier (93.2%), gross profit margin rose 0.8 points to 56.2% (1.0 point below the revised plan), and operating income fell to 5,501 million yen from 8,826 million yen. The number of men’s suits sold (not including set-up suits) fell 8.9% year on year to 955 thousand units, and year-on-year sales at existing stores were 95.8%. The company said it increased promotional spending to attract customers and secure sales during the peak season, which boosted customer numbers but weighed on unit prices and profit margins; it also cited a later start to the autumn/winter selling season due to an extended summer heat wave, and cautious consumer sentiment amid an uncertain economic environment. Gross margin on made-to-order suits improved 1.5 points year on year on changes to production bases and revised fabric/option pricing, and gross margin on casual items improved 4.6 points.

Segment Results

Outside the core Business Wear segment, most of AOYAMA TRADING’s group businesses increased both sales and profit in FY3/2026. The Franchisee segment (glob Co., Ltd., which operates Yakiniku King, Yuzu An, PISOLA, 2nd STREET, Anytime Fitness and WECLE outlets under franchise agreements) recorded its best sales and operating income since establishment, with sales of 17.54 billion yen (up 1.33 billion yen year on year) and operating income of 1.32 billion yen (up 200 million yen). The Credit Card segment (Aoyama Capital Co., Ltd.) grew sales to 5.5 billion yen (up 240 million yen) and operating income to 2.42 billion yen (up 440 million yen), even as the number of valid Aoyama Card members declined slightly to 3.79 million (down 60,000). The Total Repair Service segment (Minit Asia Pacific Co., Ltd.) grew sales to 14.61 billion yen (up 480 million yen) and operating income to 360 million yen (up 200 million yen), and the Sundry Sales segment (Seigo Co., Ltd., the DAISO 100-yen-shop distributor) grew sales to 15.26 billion yen (up 150 million yen) and operating income to 150 million yen (up 10 million yen). The Printing and Media segment (ASCON Co., Ltd.) returned to profitability, with operating income of 50 million yen (up 220 million yen) even as sales declined to 10.8 billion yen (down 140 million yen) on lower orders from existing clients. The Others category — which included WTW Corporation, dissolved on March 31, 2026 after all its stores and its EC store were closed in February, and Customlife Co., Ltd., which withdrew from its Homewine business at the end of December — reduced its operating loss to 100 million yen (an improvement of 170 million yen) on sales of 980 million yen (down 120 million yen).

Segment (Unit: 100 Million Yen)	Net Sales FY3/2025	Net Sales FY3/2026	Operating Income FY3/2025	Operating Income FY3/2026
Business Wear	1,331	1,242	83	51
Credit Card	52	55	19	24
Printing and Media	109	108	-1	0.5
Sundry Sales	151	152	1	1
Total Repair Service	141	146	1	3
Franchisee	162	175	11	13
Real Estate	45	45	11	11
Others	11	9	-2	-1
Adjustments	-47	-45	1	0.9
Total	1,957	1,890	125	105

FY3/2027 Forecast

For FY3/2027, AOYAMA TRADING forecasts consolidated net sales of 194,700 million yen (103.0% of FY3/2026), gross profit of 101,700 million yen (gross margin 52.2%, up 0.3 points), SG&A expenses of 90,000 million yen (102.8%), operating income of 11,700 million yen (110.5%), ordinary income of 11,900 million yen (109.0%) and net income attributable to owners of the parent of 7,600 million yen (109.9%). On a non-consolidated basis, net sales are planned at 124.8 billion yen (102.2% of FY3/2026), including a plan for EC sales of 5.5 billion yen (135% of FY3/2026). By segment, the Business Wear segment’s plan calls for net sales of 127,700 million yen (102.7% of FY3/2026) and operating income of 58 (100 million yen; 111.9%); the Franchisee segment’s plan calls for net sales of 18,700 million yen (106.6%) and operating income of 13 (100 million yen; 102.2%); and the Total Repair Service segment’s plan calls for net sales of 15,800 million yen (108.1%) and operating income of 6 (100 million yen; 162.7%).

Item (Million Yen)	FY3/2026 Results	FY3/2027 Plan	YoY / Margin Change
Net sales	189,011	194,700	103.0%
Gross profit (margin)	98,172 (51.9%)	101,700 (52.2%)	+0.3pt (margin)
SG&A expenses	87,583	90,000	102.8%
Operating income	10,588	11,700	110.5%
Ordinary income	10,919	11,900	109.0%
Net income attributable to owners of the parent	6,918	7,600	109.9%
Net income per share	47 yen 95 sen	53 yen 54 sen	–

Shareholder Returns

Under its FY3/2025–FY3/2027 Medium-Term Management Plan, AOYAMA TRADING’s basic policy is to actively and stably return profits to shareholders while investing in growth, and to pay dividends through profit growth using the higher of a consolidated dividend payout ratio of 70% or a dividend on equity ratio (DOE) of 3%, while working to improve capital efficiency and increase dividends over the medium to long term. The company also plans to flexibly conduct share repurchases with the aim of improving capital efficiency, and intends to purchase up to 10 billion yen of treasury shares during the period of the Medium-Term Management Plan. For FY3/2026, the company paid a total annual dividend of 136.00 yen per share (interim 55.00 yen, year-end 81.00 yen), up from 134.00 yen (interim 30.00 yen, year-end 104.00 yen) for FY3/2025. For FY3/2027, the company forecasts an annual dividend of 38.00 yen per share (interim 19.00 yen, year-end 19.00 yen); the FY3/2025 and FY3/2026 figures are stated before the company’s April 1, 2026 3-for-1 stock split, and on a post-split basis the FY3/2027 forecast annual dividend is equivalent to 114 yen per share.

Fiscal Year	Interim (Q2-end)	Year-end	Total
FY3/2025	30.00 yen	104.00 yen	134.00 yen
FY3/2026	55.00 yen	81.00 yen	136.00 yen
FY3/2027 (Forecast)	19.00 yen	19.00 yen	38.00 yen

Medium-Term Plan / Topics

President Taizo Endo marked one year since taking over leadership under the company’s new management structure introduced in April 2025, which consolidated organizational functions into an OMO and Retail Division, a DX Strategy Division and a Human Resources Development Division to speed up decision-making and address what the company described as a legacy of organizational sectionalism. Initiatives cited in the presentation include the rollout of the “DIGI-Labo” in-store digital system to 357 Yofuku-no-Aoyama stores as of October 2025, a reduction in average e-commerce delivery time to 3.12 days (3.7 days shorter than before), and the completion of a replacement of the company’s EC and core systems.

A centerpiece of the company’s response to a decline in the number of customers has been the November-launched “Minna-no-suit” value suit line (a top-and-bottom set priced at 12,980 yen including tax), which the company says sold 140,000 units and generated 740 million yen in sales in the six months following launch, with 61.2% of buyers aged 22 or under and 44.5% women, and was selected as the grand prize in the apparel category of Nikkei TRENDY’s First Half of 2026 Hit Grand Prize. The company said that, compared with the trend before the launch, the year-on-year change in the number of suits sold improved by 8.4 points and the year-on-year change in the number of customers at existing stores improved by 5.2 points.

As part of its review of the business portfolio, the company dissolved subsidiary WTW Corporation on March 31, 2026 after closing all of its stores and its EC store in February, citing low profitability and a lack of synergy with the core business. The company has also begun formulating its next Medium-Term Management Plan, to start in the fiscal year ending March 2028, through a process involving workshops among younger employees and leaders, discussion among all executive officers, and deliberation by the Board of Directors including outside directors.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.