CURVES HOLDINGS Co., Ltd. (7085) Stock Price

Curves Holdings is a pure holding company that operates Curves, a women-only 30-minute health and fitness franchise. The company focuses on brand management and franchise headquarters functions, providing business guidance, system implementation, and supplying equipment, products, and promotional materials to franchise partners. It oversees domestic and international franchise chains, prioritizing business growth and operational support.

The company's primary customers are franchise partners and their members. Revenue comes from royalties and franchise support fees from partners, sales of equipment and products, and direct-operated store sales. The Curves brand's revenue foundation depends on member count and store numbers. As of August 2025, the company operates approximately 1,996 domestic stores with roughly 863,000 members.

The business is concentrated in a single "Curves business" segment. Domestically, Curves Japan serves as the franchise headquarters, handling training, store opening support, and member merchandise sales, while Hi-Standard operates company-owned stores in select regions. Internationally, Curves International acts as the global franchisor, managing royalties and equipment sales, while Curves Europe and other local subsidiaries provide franchise support and direct store operations in Europe.

The company aims to grow as a "community-focused health infrastructure" over the medium to long term. Specifically, based on the "Curves Group Mid-Term Vision 2030/2035," the company targets expanding to approximately 2,600 stores, 1.2 million members, and 130 billion yen in chain sales by 2030. Further ahead, by 2035, the company commits to 3,150–3,500 stores, 1.4–1.5 million members, and 180–200 billion yen in chain sales. The company has set clear financial targets: maintaining year-over-year average growth rates of 10% or higher in operating profit, EBITDA, and free cash flow, with ROIC maintained at 12% or above and targeting 15%. In the near term, for the fiscal year ending August 2026, the company projects sales of 41.3 billion yen and operating profit of 7.3 billion yen, aiming for steady revenue expansion.

The company prioritizes human capital and operational productivity improvements as key investment areas. It is increasing headcount to support accelerating new business expansion and providing base salary increases to existing employees. For franchise partners, the company is implementing management guidance, training, and system rollouts to strengthen operational capabilities. The company also aims to improve gross margins through expanded recurring sales of member merchandise (primarily protein and health products) and product development. It is reducing membership cancellations through three annual campaigns and improved customer satisfaction, differentiating itself through community-focused service and proprietary marketing. As of August 2025, the company operates approximately 1,996 domestic stores with roughly 863,000 members as its business foundation.

The company is actively pursuing new market development and business expansion. Domestically, it is cultivating "Men's Curves" for male customers and "Pinto-Up," a new rehabilitation-focused brand. For the fiscal year ending August 2026, Men's Curves is projected to reach 45 stores (net addition of 20 during the period), and Pinto-Up is expected to expand to 72 stores (net addition of 35 during the period). Internationally, the company plans to increase store openings in Europe (UK, Ireland, Spain, and others) as its priority region, building on strong existing store performance. The company has factored in expected full-year losses as a preparation period for growth. By combining these multiple formats, the company aims to achieve its store, member, and sales targets for 2030–2035.

Regarding technological innovation, the company continues investing in systems to improve store operational productivity. By digitizing business support systems connecting the franchise headquarters with partner stores and member management, the company aims to reduce operational burden and leverage data-driven marketing to increase new member acquisition and merchandise attachment rates. Additionally, to address rising raw material costs, the company is advancing research and development of new products, planning to introduce alternative products that reduce dependence on protein's primary ingredients and value-added products between 2027 and 2028. By combining these technology and product investments with human capital investment, the company aims to enhance profitability in terms of ROIC and EBITDA.