CHARLE CO.,LTD.JP:9885Stock Price

Market cap
¥5.7B
P/E ratio
-1.7x
Charle sells women's innerwear through home fitting parties and online, plus manufactures innovative water products using ultrafine bubble technology.

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Business Overview

Charle operates primarily through two business segments. The first is the ladies' innerwear sales business. In this segment, products manufactured at partner factories both domestically and internationally are provided to consumers through business members. The primary sales method is direct sales conducted through home party-style fitting sessions. The company also operates mail-order sales through its e-commerce website.

The second segment is the manufacturing and sales of ultrafine bubble technology products. This business is centered on TKS Corporation, which manufactures and sells showerheads and water-related products utilizing ultrafine bubble technology. Additionally, WATER CONNECT Corporation sells these products through e-commerce sites and other channels. Through these operations, the company provides consumers with innovative water-related products.

Management Policy

Charle has formulated a medium-term management plan from 2024 to 2029, aiming to reform its business structure and maximize group synergies. Under this plan, the Charle business is positioned as a second founding period, targeting performance recovery and renewed growth. The company also seeks to enhance corporate value through customer data utilization and development of new revenue businesses.

Charle's long-term vision, "Charle Group Vision 2035," aims to provide a "new form of affluence" suited to the times. Under this vision, the company pursues the realization of "Well-Being"—enabling people to maintain physical and mental health, shine as their authentic selves through engagement with society and others. This approach drives sustainable growth and enhanced corporate value.

The medium-term management plan prioritizes foundation building for the Charle business and strengthening marketing strategies. Key initiatives include constructing a hybrid sales model that integrates direct sales and mail-order sales, strengthening health food sales, and developing new products. Additionally, the company aims to improve employee engagement through organizational culture reform and work style reforms.

Furthermore, Charle is advancing capital cost management to improve capital efficiency. Based on capital allocation policies, the company prioritizes business structure reform and investment in new businesses to generate free cash flow. This approach enables the company to balance growth investment with shareholder returns while improving ROE.

By 2035, Charle targets consolidated net sales of 20.4 billion yen, an operating profit margin of 10% or higher, and ROE of 5% or higher. To achieve these targets, the company actively pursues business structure reform and new business development to enhance corporate value.