ATSUGI CO., LTD. (3529) Stock Price

Atsugi operates primarily through three business segments: textiles, real estate, and other businesses. In the textile segment, the company manufactures, procures, and sells legwear and innerwear. Key affiliated companies include Atsugi Co., Ltd., Renown Inks Co., Ltd., and Atsugi (Shanghai) Fashion Trading Co., Ltd.

In the real estate segment, Atsugi handles the sale and rental of real estate properties. This segment is primarily managed by Atsugi Co., Ltd., as part of the company's business diversification strategy.

Other businesses include the procurement and sale of care products, operation of group homes, and electricity sales from solar power generation. These operations are managed by Atsugi Care Co., Ltd. and Atsugi Co., Ltd.

Atsugi has launched a growth strategy under its medium-term management plan "ATSUGI VISION 2024" covering 2023 to 2025. The plan sets four key priorities, including "shifting toward value creation from a customer perspective" and "clarifying market positioning through brand strengthening."

To address these priorities, Atsugi is implementing strategies such as "maximizing added value" and "reforming cost structure" to achieve profitability. The company is also establishing a stable financial foundation for sustainable growth through measures including consolidating overseas production facilities and reviewing product pricing.

Notably, Atsugi is focusing on expanding its D2C (Direct to Consumer) business. However, rising raw material and energy costs, along with currency headwinds from yen weakness, continue to present profitability challenges. These factors have resulted in declining profitability in the textile business and impairment losses on fixed assets, preventing the company from achieving its management targets.

Atsugi is pursuing business recovery and strengthening its corporate foundation by restructuring its revenue model. The company is committed to expanding high-value-added products, enhancing market competitiveness, and advancing human capital management. However, given global uncertainties and domestic economic instability, the company has postponed announcing its new medium-term management plan.