JAPAN CRAFT HOLDINGS CO., LTD.【JP:7135】Stock Price

Japan Craft Holdings is a holding company that oversees its subsidiary group companies and operates primarily in craft-related retail, publishing, and classroom operations. The company provides overall management and strategic support for the group, while supporting the business operations of each subsidiary.

The main customers are general consumers who pursue crafts as a hobby and students seeking to learn handmade skills. Revenue is primarily generated through the sale of materials and miscellaneous goods at stores and through e-commerce, book sales, and classroom tuition fees. The company expands customer touchpoints through both in-person and online sales channels.

The business is divided into two main segments: retail operations and publishing/education operations. The retail segment centers on "Craft Heart Tokai," a specialty craft store, selling materials and lifestyle goods through physical stores and e-commerce. The publishing and education segment is operated by Nihon Vogue Co., Ltd., which publishes craft books, and Vogue Gakuen, which operates handmade craft classes through stores, culture schools, and online platforms. These entities form the group's primary product lines and service offerings.

The company aims to enhance corporate value and establish a "profitable business structure" through its medium-term management plan. Specifically, it has set targets of approximately 14.6 billion yen in revenue and 334 million yen in operating profit for the fiscal year ending June 2026; 15.5 billion yen in revenue and 680 million yen in operating profit for 2027; and approximately 16.64 billion yen in revenue and 1.12 billion yen in operating profit for 2028. The company is working to transform into a business structure capable of generating stable profits. Building on the previous fiscal year's structural reforms, including the closure of unprofitable stores and the achievement of operating profit breakeven, the company is strengthening its revenue base to reach these targets.

The company is prioritizing investment in store network restructuring, e-commerce expansion, and product strategy revision. Specifically, while consolidating underperforming stores, it is focusing on developing high-value-added products that combine stores, classes, and publishing content, as well as providing face-to-face learning experiences. Against price competition from dollar stores and similar retailers, the company is differentiating itself through its strengths in "the joy of handmade creation and experiential value." Additionally, the company is investing in human resource development and financial base improvement, with plans to expand product offerings and services through M&A and business partnerships.

In new market development and business expansion, the company aims to enter new business domains centered on "handmade" based on its Long-Term Vision 2030. Leveraging the customer base built through classroom operations and publishing, the company plans to acquire new craft enthusiasts by increasing customer touchpoints through both online and in-person channels. Furthermore, through M&A and alliances, the company will introduce new products and services while establishing a business structure capable of responding to external environmental changes, including diversifying hobbies, capturing younger demographics, and increasing international visitors.

Regarding technological innovation, the company aims to enhance competitiveness through increased use of digital technology. Specific initiatives include strengthening the EC platform, expanding online classes, and improving efficiency through data utilization in sales and inventory management. The company will also enhance the precision of product development and promotional activities based on customer purchase history and preference data. This approach will enable flexible responses to external risks such as rising raw material costs and intensifying competition, supporting sustainable growth.