Japan Eyewear Holdings ＜5889＞ manufactures high-quality eyewear planned and designed in-house through the skilled craftsmanship of Sabae City in Fukui Prefecture, known as one of the three major eyewear production areas in the world. Sales are centered around unique stores that express the brand's worldview.

The "Kaneko Glasses Group," which has its own factory in Sabae City, and the quality-focused eyewear brand "Four Nines" formed a partnership in 2021, aiming to establish a position as a top-class luxury eyewear brand. Kaneko Glasses operates three production bases (with a total annual production of about 0.1 million pairs), with plans to complete a new factory by 2024. Approximately 60% of consolidated sales are accounted for by the Kaneko Glasses Group, while around 40% is attributed to the Four Nines Group. As of the end of October 2024, Kaneko Glasses' directly operated stores number 84 in Japan, 2 in France, and 3 in China, with about 90% of revenue coming from store sales. In contrast, Four Nines has 15 directly operated stores in Japan and 1 in Singapore, with store sales and wholesale accounting for roughly 50% each. The average price for a set (total of frame and lens purchase price) is about 76,000 yen for Kaneko Glasses and about 81,000 yen for Four Nines, pursuing luxury eyewear.

For the second quarter cumulative sales revenue for the period ending January 2025, an increase of 29.6% year-on-year is recorded at 8300 million yen, with operating profit landing at 2754 million yen, an increase of 53.5% year-on-year. Thanks to a recovery in domestic personal consumption and an expansion of inbound demand, store sales continued to remain strong. Inbound sales reached approximately 1.6 billion yen, accounting for 26.8% of store sales during the second quarter's three months. Visitors from china have not yet fully recovered compared to 2020, and further improvements in inbound sales revenue are anticipated as demand returns. Additionally, ongoing price revisions based on brand strength have been implemented. A total of six new stores across both brands have opened domestically (two of which are relocations to prime locations of existing stores). Full-year sales revenue is expected to be 14960 million yen, up 10.6% from the previous period, with operating profit expected to be 4300 million yen, an increase of 16.2%.

The company continues to grow without competitors as a luxury eyewear company originating from japan, leveraging its strong brand power. By opening stylish stores at prime urban locations, including flagship stores, department stores, and commercial facilities, it fosters a high degree of customer attraction and a luxurious brand image, succeeding in attracting customers without spending on advertising. Going forward, there are plans for steady new store openings totaling about 5 to 10 annually across both brands, while carefully selecting locations to continue stable store openings for both brands. Additionally, the Four Nines brand, with a high wholesale ratio, is pushing for the expansion of more profitable store sales to improve profitability. Currently, for both brands, there seems to be no impact on customer numbers even with price revisions, and growth at existing stores will be realized through continuous improvement in the average price per set. Furthermore, there is potential for further growth fueled by the recovery of foreign visitors and the acceleration of store expansion and partnerships overseas. It appears there are plans to appeal to luxury-conscious overseas customers with eyewear brands from japan and Sabae, considering openings in the rapidly growing Greater China and qitabankuai region. In addition, a stable dividend policy is being maintained, with a target of a 40% annual payout ratio for dividends. By leveraging the abundant cash flow generated, the company will implement shareholder returns, debt repayment, and growth investments in a balanced manner. The future developments of the company, expected to see continuous growth in existing stores driven by brand strength, are likely to attract attention.