Treasure Factory Sees Macro Shifts Boosting Reuse Demand and Profitability

Treasure Factory Co., Ltd. ( (JP:3093) ) has shared an announcement.

Treasure Factory Co., Ltd. expects crude oil supply constraints and resulting new-goods shortages, combined with heightened consumer budget-consciousness, to stimulate secondhand demand and support further profit growth. The company is also benefiting from a weak yen, as robust inbound demand from regions such as the U.S., other Asian countries, Australia, and Europe offsets softer Chinese tourist traffic, while it aims to balance domestic and tax-free sales without rigid inbound targets.

Management reports an improved gross profit margin at existing non-consolidated stores, driven by a revised buyback coupon system, a favorable sales mix toward high-margin lower-priced items, and disciplined winter inventory pricing, with coupon-related margin gains expected to continue through the second quarter of the next fiscal year. Although strong performance at Kindal slightly depresses the consolidated gross margin due to sales mix effects, its high-priced vintage apparel offers light operations and strong sales efficiency, enabling control of SG&A costs and supporting operating profit growth as the group optimizes business models across merchandise types.

More about Treasure Factory Co., Ltd.

Treasure Factory Co., Ltd. operates in the reuse and secondhand retail industry, dealing in a wide range of pre-owned products such as home appliances, apparel, and other consumer goods. The company targets both domestic customers and inbound tourists, leveraging tax-free sales and diverse product categories to capture shifting demand across price points, including lower-priced and vintage items.

Average Trading Volume: 151,133

Technical Sentiment Signal: Buy

Current Market Cap: Yen41B

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