UP GARAGE GROUP Co.,Ltd. [7134.T]
TOKYO, May 29 (Pulse News Wire) – UP Garage Group CO.,LTD. (7134.T) addressed investor queries regarding its fiscal year 2026 performance.
The company reported gradual improvements in gross margin through effective store management and a newly implemented pricing system. For the current fiscal year, the target gross margin slightly exceeds last year's level. In response to concerns about cannibalization among stores pursuing dominant market positioning, CEO Kono Akihiko noted successful expansion strategies without significant negative impacts. Existing stores surpassed previous year’s performance while new locations steadily increased their market share, fostering a positive cycle expected to continue.
Regarding sales growth initiatives, the company highlighted the effectiveness of mobile app marketing, which has seen downloads surpassing 700,000. Features such as push notifications and personalized customer communications contributed positively to increasing visit frequency and average transaction value. For future projections, UP Garage acknowledged potential challenges due to inflationary pressures but remains optimistic. While cost-push inflation could impact new product distribution, the used goods sector is anticipated to benefit from heightened consumer demand.
The company plans to intensify efforts in collecting Nexlink utilization fees alongside expanding supplier networks and inventory control measures.
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