Treasure Factory Co.,LTD. [3093.T]
TOKYO, May 27 (Pulse News Wire) – Treasure Factory CO.,LTD. (3093.T) reported robust operating performance for the fiscal year ending February 2026, despite facing challenges such as rising logistics costs due to crude oil supply constraints and reduced Chinese tourist spending.
The company highlighted its ability to capitalize on increased thriftiness among consumers and expanding sales from low-cost items, contributing to higher gross margins. In response to concerns over declining crude oil supplies impacting logistics expenses, the firm emphasized positive trends in consumer behavior favoring used goods, driving demand growth. Additionally, while noting a slowdown in revenue growth rates, the company remains optimistic about future opportunities and plans to balance domestic and duty-free sales effectively. Regarding operational improvements, Treasure Factory attributed enhanced gross profit margins to changes in buyback processes, favorable sales mix from lower-priced merchandise, and effective inventory management during winter seasons.
The company expects similar margin benefits through the second quarter of fiscal 2027. For long-term strategy, Treasure Factory outlined investments in artificial intelligence and digital transformation aimed at boosting productivity and expanding operations internationally, particularly in the United States. The firm also detailed plans to maintain a balanced approach to store expansion within Japan, targeting up to 1,000 stores nationwide. Despite ongoing investment leading to temporary declines in profitability, the company believes these strategic moves will support sustained growth and is considering opportunistic share repurchases based on current valuation levels.
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