happiness and d co ltd【JP:3174】Stock Price

Happiness & D is a retail group that manufactures and sells jewelry, watches, and bags and accessories. The company operates stores under brands such as "Happiness" and "GINZA Happiness" across shopping centers and commercial facilities nationwide, creating upscale retail environments centered on gifts for special occasions.

The company's primary customers are general consumers across a wide age range, with retail sales at physical stores forming the core of revenue. Additionally, the company is expanding revenue streams through wholesale of jewelry produced in its own workshops, sales via directly operated stores and e-commerce, and trade-in/buyback services and vintage (resale) sales of imported brands.

The business is divided into three main product lines: jewelry, watches, and bags and accessories, offering a wide range from imported branded goods to precious metals such as diamonds, gold, and platinum. In addition to its original brand "h&d," AbHeri operates high-value-added jewelry that is designed and manufactured in-house, while No., established in 2023, is working on new jewelry brand development and sales channel expansion. The company operates 57 stores nationwide as of August 2025, primarily located in shopping centers.

Happiness & D has adopted a growth strategy prioritizing revenue expansion and profitability recovery. The company focuses on key performance indicators including customer traffic, average transaction value, and operating profit improvement, aiming for early profitability through structural reforms and new business launches. Specifically, the company has improved its cost structure by closing 17 unprofitable stores in the previous period and 14 in the current period, operating 57 stores nationwide as of August 2025. On the financial front, the company has secured cash and deposits of 589,512 thousand yen, arranged overdraft facilities with Chiba Bank (limit of 400,000 thousand yen, current borrowing of 100,000 thousand yen), and is raising capital through the issuance of share warrants and unsecured bonds on November 4, 2025, while working to stabilize its financial foundation.

Priority investment areas include jewelry and precious metals, vintage and resale products, and proprietary brand development. In 2023, the company made AbHeri, a jewelry manufacturer and retailer, a wholly owned subsidiary, improving profit margins through integrated manufacturing and sales operations. AbHeri has expanded to three company-operated stores in Ginza, Osaka, and Fukuoka, with plans to develop the Osaka location as a flagship store for the Kansai region. The company is also beginning to handle vintage products in the second half of the fiscal year, aiming to improve profit margins through enhanced procurement systems and in-house buyback operations, while strengthening product mix and merchandise planning and procurement.

For new market development, the company is diversifying sales channels beyond its existing shopping center-focused store model. The company aims to expand sales channels through brand launches under a new banner, awareness building via pop-up and event sales, and full-scale expansion of AbHeri into China, leveraging overseas markets and event-based sales. Additionally, the company is strengthening online sales and expanding sales channels through events and promotional activities to develop customers based on inbound tourism and regional characteristics, thereby diversifying its revenue base.

The company is also focusing on technological innovation and operational efficiency, promoting store digitalization. The introduction of electronic tags for inventory management and the ABC system enhance inventory control and operational efficiency, while digitization of customer information and expansion of in-house online sales advance omnichannel operations. These efforts enable store staff to focus on customer service, with the goal of improving customer satisfaction and repeat visit rates through enhanced service quality and sales proposals.