HUMAN MADE Inc. (456A) Stock Price

HUMAN MADE Inc. designs and produces high-value apparel and lifestyle products centered on a culture born from human creativity and craftsmanship, with the concept "The Future Is In The Past." The company strengthens brand value through limited supply of carefully selected quality materials and meticulous attention to detail, and distributes its products to fans, creators, and celebrities worldwide.

The company's primary customers are creatively-minded consumers, artists, celebrities, and overseas select shops. Sales are primarily through direct channels—the company's own e-commerce platform and retail stores. In Europe, Asia, and other regions, the company supplements sales through wholesale and licensing arrangements. By maintaining a no-discount pricing policy and limited supply strategy, the company achieves high profit margins and nearly 100% sell-through rates.

The company operates a single brand business segment with products divided into two main categories: apparel and lifestyle goods including interior and home accessories. The company drives brand penetration and revenue through a combination of collaborations with brands such as KAWS, VERDY, NIKE, and Levi's; seven domestically operated flagship stores; partner-operated mono-stores overseas; food and beverage operations; and IP licensing.

Under a three-year medium-term management plan, the company prioritizes building brand value while pursuing both growth and profitability. Specifically, it will limit the temporary decline in operating profit margin from upfront investments while focusing on key metrics including sales growth rate, operating profit margin, ROE, and shareholders' equity ratio to achieve sustainable growth. By building long-term customer trust centered on its brand business, the company aims to maintain full-price sales of high-value-added products and preserve high profit margins.

Priority investment areas are brand strengthening and supply chain stabilization. The differentiation strategy emphasizes maintaining brand exclusivity through limited supply, non-discounting pricing policies, and collaborations with renowned creators. To improve quality and ensure stable supply, the company is standardizing supplier guidelines and pre-shipment quality inspections, refining cost structures, and selecting suppliers carefully. It targets nearly 100% sell-through rates by maintaining merchandise composition (combining seasonal, core, and essential items) that minimizes inventory loss while achieving high sales completion rates.

For new market development and business expansion, the company prioritizes international expansion and brand portfolio diversification. Currently, approximately 64% of sales come from overseas demand, with duty-free domestic sales accounting for roughly 37% in the January 2025 fiscal year. The company will enhance domestic stores to capture inbound demand while positioning the Chinese market as its primary focus, allocating personnel and capital accordingly. For South Korea and Taiwan, it will pursue partner-based expansion; for Europe, it will focus on branding through pop-ups and events. Funds raised from the IPO, along with cash reserves and operating cash flow, will be allocated to domestic and international store openings, establishing local subsidiaries, upgrading e-commerce systems, and pursuing M&A of brands and intellectual property with strong strategic fit to develop second and third growth pillars.

Regarding technological innovation, the company is advancing digitalization in both operational efficiency and quality management. Specifically, investments in production management systems and e-commerce platforms will enable centralized management and visibility, with data optimization of inventory, ordering, and quality control processes. By selecting suppliers based on product characteristics such as printing and embroidery and developing alternative suppliers, the company aims to optimize costs while ensuring stable supply. This asset-light operating model maintains low risk and a low break-even point.