Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

<ul><li>Q1 FY3/25 earnings look negative at first glance, with both sales and operating profit falling. However, the details show strong demand for GEO HOLDINGS’ core second-hand fashion business and smartphone sales, helping gross profit increase.</li><li>The key earnings drivers were a fall in sales (-6.2% YoY to ¥100.15bn) due to difficult annual comps from new games sales.</li><li>However, GEO HOLDINGS’ core second-hand fashion business and smartphones enjoyed robust demand, thanks to new store openings at home and overseas.</li></ul>

Q1 FY3/25 earnings look negative at first glance, with both sales and operating profit falling. However, the details show strong demand for GEO HOLDINGS’ core second-hand fashion business and smartphone sales, helping gross profit increase.The key earnings drivers were a fall in sales (-6.2% YoY to ¥100.15bn) due to difficult annual comps from new games sales.However, GEO HOLDINGS’ core second-hand fashion business and smartphones enjoyed robust demand, thanks to new store openings at home and overseas.

Geo Holdings (2681 Jp) - Q1 FY3/25 Results Update

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

<ul><li>Revenue was JPY100.1bn (-6.2% YoY), operating profit JPY4.4bn (-24.6% YoY), recurring profit JPY5.5bn (-22.5% YoY), net income JPY3.5bn (-26.5% YoY).</li><li>Gross profit was JPY41.7bn (+6.1% YoY), with a gross profit margin up 4.8pp to 41.6%, and SG&A ratio rose 5.9pp to 37.3%.</li><li>Revenue of secondhand products rose 17.7% YoY to JPY46.4bn, while new product revenue dropped 42.6% YoY to JPY21.3bn.</li></ul>

Revenue was JPY100.1bn (-6.2% YoY), operating profit JPY4.4bn (-24.6% YoY), recurring profit JPY5.5bn (-22.5% YoY), net income JPY3.5bn (-26.5% YoY).Gross profit was JPY41.7bn (+6.1% YoY), with a gross profit margin up 4.8pp to 41.6%, and SG&A ratio rose 5.9pp to 37.3%.Revenue of secondhand products rose 17.7% YoY to JPY46.4bn, while new product revenue dropped 42.6% YoY to JPY21.3bn.

Geo Holdings (2681 JP): Q1 FY03/25 flash update

<ul><li>Market leader with growth potential – GEO HOLDINGS operates second-hand store chains 2nd STREET, GEO, OKURA, and off-price chain store Luck Rack.</li><li>Its 2,027 domestic stores give it the leading market share in Japan.</li><li>The company is making significant investments to extend its home advantage and build on its 2018 expansion overseas where it has 81 stores. </li></ul>

Market leader with growth potential – GEO HOLDINGS operates second-hand store chains 2nd STREET, GEO, OKURA, and off-price chain store Luck Rack.Its 2,027 domestic stores give it the leading market share in Japan.The company is making significant investments to extend its home advantage and build on its 2018 expansion overseas where it has 81 stores. 

Geo Holdings (2681 JP) - Investing for Growth

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>Mercard, the credit card launched by Mercari in late 2022, is a success, helping the the CtoC platform grow its user base and help add to Mercari's financial services business.</li>
<li>The rate of growth in online flea markets has slowed and competition has increased so relying on the CtoC platform alone won't deliver sufficient growth.</li>
<li>Mercari will introduce a new gig-work service this Spring to further differentiate its business from the likes of Rakuma and Yahoo Flea Market.</li>
</ul>


Mercard, the credit card launched by Mercari in late 2022, is a success, helping the the CtoC platform grow its user base and help add to Mercari's financial services business.
The rate of growth in online flea markets has slowed and competition has increased so relying on the CtoC platform alone won't deliver sufficient growth.
Mercari will introduce a new gig-work service this Spring to further differentiate its business from the likes of Rakuma and Yahoo Flea Market.


Mercari's Credit Card Boosts Sales, New Gig Worker Service to Add New Revenue Stream

<ul>
<li>Consumption of used products is rising fast as exemplified by the rise of 2nd Street. </li>
<li>Operated by <a href="https://www.smartkarma.com/entities/geo-holdings-corp" target="_blank" data-smartkarma-citation="entities:2453:1" rel="noopener">Geo Holdings (2681 JP)</a>, once just a DVD rental business, it is now Japan’s largest used goods retailer.</li>
<li>Sales are booming in a market increasingly focused on thrift and re-use, allowing 2nd Street to even take on the might of Mercari.</li>
</ul>


Consumption of used products is rising fast as exemplified by the rise of 2nd Street. 
Operated by Geo Holdings (2681 JP), once just a DVD rental business, it is now Japan’s largest used goods retailer.
Sales are booming in a market increasingly focused on thrift and re-use, allowing 2nd Street to even take on the might of Mercari.


Geo Holdings: Plenty of Money in Old Rope

Japan

GEO Holdings Corporation operates stores that rent and sell videos, CDs, DVDs, games, and books nationwide. The Company also buys and sells used books and CDs. GEO operates its own stores and also franchise stores.

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Geo Holdings (2681 JP)