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. 

Equity Bottom-Up

<ul>
<li>TSI is rich, which has boosted its share price since 2023, but the core fashion business has struggled recently. </li>
<li>Problems include the golf implosion, lower department store sales, and poor execution. </li>
<li>It is investing in new businesses, but worries remain about the long-term outlook, resulting in significant layoffs which have led to lawsuits.</li>
</ul>


TSI is rich, which has boosted its share price since 2023, but the core fashion business has struggled recently. 
Problems include the golf implosion, lower department store sales, and poor execution. 
It is investing in new businesses, but worries remain about the long-term outlook, resulting in significant layoffs which have led to lawsuits.


TSI Invests but Struggles with Core Business and Layoffs

Event-Driven

<ul>
<li>Like all the big apparel firms, TSI sees diversification as one of the few ways to find growth in a contracting market. </li>
<li>It has the cash to do this and has just bought Daytona, the respected operator of the Freak’s store chain.</li>
<li>It will use its access to capital to accelerate expansion for new fashion chains.</li>
</ul>


Like all the big apparel firms, TSI sees diversification as one of the few ways to find growth in a contracting market. 
It has the cash to do this and has just bought Daytona, the respected operator of the Freak’s store chain.
It will use its access to capital to accelerate expansion for new fashion chains.


TSI Buys Freak’s Store Owner Daytona International

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>A bit over three years ago I <strong><a href="https://www.smartkarma.com/insights/tsi-holdings-3608-that-old-gem-lots-of-visible-cash-and-lots-more-invisible-cash" target="_blank" rel="noopener">re-wrote</a></strong> on <a href="https://www.smartkarma.com/entities/tsi-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:19259:1" rel="noopener">Tsi Holdings (3608 JP)</a>. Then? EV/Revenue and EV/EBITDA of 0.03x and 0.5x respectively. I pounded the table. </li>
<li>My recommended trade: <em>"Buy the stock (preferably from cross-holders interested in selling). Buy with both hands. Buy a lot. Buy more later. Pressure the company to go private."</em>
</li>
<li>Since then, total return has been +295%. Today they announced another buyback. Tomorrow morning it gets done. Details details details!</li>
</ul>


A bit over three years ago I re-wrote on Tsi Holdings (3608 JP). Then? EV/Revenue and EV/EBITDA of 0.03x and 0.5x respectively. I pounded the table. 
My recommended trade: "Buy the stock (preferably from cross-holders interested in selling). Buy with both hands. Buy a lot. Buy more later. Pressure the company to go private."

Since then, total return has been +295%. Today they announced another buyback. Tomorrow morning it gets done. Details details details!


TSI Holdings (3608) - YET ANOTHER Big Buyback, Still Good, Still Cheap, But B/S Restructuring Slow

Thematic (Sector/Industry)

<ul>
<li>The Japanese fashion e-commerce market is undergoing rapid transformation: while online sales continue to grow, the channel’s share of total fashion sales has fluctuated due to strong in-store performance.</li>
<li>Even the best exemplars of effective integration of online and offline and personalised marketing have seen e-commerce share fall as physical store sales have risen faster for many. </li>
<li>Omnichannel models continue to evolve, with great examples of deeper integration of stores and digital through staff activities like blogging and Live Commerce.</li>
</ul>


The Japanese fashion e-commerce market is undergoing rapid transformation: while online sales continue to grow, the channel’s share of total fashion sales has fluctuated due to strong in-store performance.
Even the best exemplars of effective integration of online and offline and personalised marketing have seen e-commerce share fall as physical store sales have risen faster for many. 
Omnichannel models continue to evolve, with great examples of deeper integration of stores and digital through staff activities like blogging and Live Commerce.


Fashion E-Commerce in Japan: Stores Are Key Too

<ul>
<li>Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.</li>
<li>2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.</li>
<li>While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.</li>
</ul>


Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.
2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.
While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.


Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

Japan

TSI Holdings Company Ltd. manufactures men's and women's clothing, and retails women's clothing.  The Company produces and sells coats, dresses, suits, sweaters, shirts, skirts, and pants.

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52-week Range	0.00 - 0.00
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Tsi Holdings (3608 JP)

TSI Invests but Struggles with Core Business and Layoffs

TSI's share price has risen due to wealth, but struggles in core fashion business lead to layoffs and lawsuits amid concerns about long-term outlook.

Michael Causton

TSI Buys Freak’s Store Owner Daytona International

TSI buys Daytona to diversify and accelerate growth in a shrinking market by expanding fashion chains but the latter will also likely take over...

Michael Causton

TSI Holdings (3608) - YET ANOTHER Big Buyback, Still Good, Still Cheap, But B/S Restructuring Slow

TSI Holding is launching another large buyback tomorrow. This is a big upgrade from the buyback announced a week-plus ago. On a cap structure...

Travis Lundy

Fashion E-Commerce in Japan: Stores Are Key Too

Japanese fashion e-commerce market sees growth, but in-store sales outpace online, challenging even top omnichannel strategies. Staff engagement...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

TSI Invests but Struggles with Core Business and Layoffs

​TSI's share price has risen due to wealth, but struggles in core fashion business lead to layoffs and lawsuits amid concerns about long-term outlook.

Michael Causton

TSI Buys Freak’s Store Owner Daytona International

​TSI buys Daytona to diversify and accelerate growth in a shrinking market by expanding fashion chains but the latter will also likely take over...

Michael Causton

TSI Holdings (3608) - YET ANOTHER Big Buyback, Still Good, Still Cheap, But B/S Restructuring Slow

TSI Holding is launching another large buyback tomorrow. This is a big upgrade from the buyback announced a week-plus ago. On a cap structure...

Travis Lundy

Fashion E-Commerce in Japan: Stores Are Key Too

​Japanese fashion e-commerce market sees growth, but in-store sales outpace online, challenging even top omnichannel strategies. Staff engagement...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

​Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

TSI's share price has risen due to wealth, but struggles in core fashion business lead to layoffs and lawsuits amid concerns about long-term outlook.

TSI buys Daytona to diversify and accelerate growth in a shrinking market by expanding fashion chains but the latter will also likely take over...

Japanese fashion e-commerce market sees growth, but in-store sales outpace online, challenging even top omnichannel strategies. Staff engagement...

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...