7689.T

• Overall Financial Performance

  • Total company revenue for the 2026 February period was 1.779 billion yen, a 13.3% year-over-year decline. Gross profit was 0.657 billion yen with a gross margin of 37%, operating loss was 0.271 billion yen (down 10 million yen from the prior year's 0.281 billion yen loss), and net loss was 0.272 billion yen (an improvement of 0.165 billion yen year-over-year, mostly due to the absence of the prior year's 0.159 billion yen software impairment charge).
  • The company disposed of low-sales-projection inventory to improve financial health and future inventory efficiency, which temporarily raised cost of sales but is expected to support future profit improvements. Ending cash and deposits stood at 0.559 billion yen, total assets at 1.152 billion yen, net assets at 0.767 billion yen, and equity ratio at 66.6%, maintaining solid financial health with no going concern issues.
  • As of February 26, 2026, the company is non-compliant with the TSE Growth Market's listed market capitalization requirement (it is below the 0.5 billion yen threshold), and will disclose a compliance plan within 3 months.

• AI-Driven Operational Transformation

  • Co-developed the "Demonstration Talk Script Automatic Generation System" with Sapeet Inc., embedding 30+ years of accumulated demonstration knowhow into generative AI. The system cuts script creation time from 8 hours to ~5 minutes, and enabled full AI conversion of the 売の極意塾 demonstration sales training program, shortening the basic course from 9 days to 3 days while including product training that was previously external. 10 training sessions were held in the period.
  • Company-wide AI adoption improved efficiency and cut costs: an AI chatbot handles internal general affairs inquiries, generative AI creates multilingual in-store pop signage for inbound customers, and an AI-powered automated phone response system enables 24/7 customer service in the CS department.

• Digital and Service Integration

  • Integrated the existing EC site into the new わくたんマーケット platform, and is developing AI-powered online demonstration sales leveraging the company's traditional demonstration expertise, with rollout to major product pages starting March 2026 to solve common EC pain points of unclear product appeal and hard-to-imagine usage feel. Integrated crowdfunding functionality to smooth the customer journey from product discovery to purchase.

• New Product Development and Supply Chain Reform

  • In-house senior demonstration anchors developed new private label products, including the pre-launch of the Nu:ma ultra-low rebound insole in November 2025 and the Tsukumo Colors 100% UV-blocking, 100% light-blocking folding umbrella in February 2026.
  • Consolidated three warehouses into one to achieve substantial logistics cost cuts, and optimized external outsourcing costs via AI-driven operational improvements, laying the groundwork for future profit gains.

• Human Resources Development

  • Launched the 劇団ゲキコパ theater troupe as a new training ground to address the industry-wide shortage of young demonstration sales staff, combining stage performance skills with sales training. In-store demonstration event counts increased 125% year-over-year, showing progress in reviving on-site demonstration operations.

• For the 2027 February period, management guides 1.802 billion yen in total revenue (approximately 1% year-over-year growth), with an operating profit of 10 million yen, ordinary profit of 20 million yen, and net profit of 20 million yen. The absolute top priority is exiting four straight years of losses and returning to net positive profitability.
• Gross margin is guided to improve from the current period's 37%, driven by expanded SKU counts, stronger sales of high-margin products like the Tsukumo umbrella series, and improved cost of sales after completing low-margin inventory disposal.
• Selling, general and administrative expenses are guided to decrease substantially from the current period's 0.928 billion yen, via advertising spend optimization, structural review of outsourcing costs enabled by AI, and consolidated infrastructure costs from the わくたん service integration. The goal is to restructure the business so that gross profit exceeds total SG&A expenses.
• Management plans to achieve listing maintenance compliance via returning to operating profitability and IR activities to support share price recovery.
• A capital restructuring proposal (free capital reduction to adjust capital structure, no share repurchases or change to total shares outstanding) will be put to a vote at the May 2026 annual general meeting of shareholders, to enable more flexible capital and financial strategy while maintaining financial health.

コパ・コーポレーション operates as a single business segment for demonstration sales, broken out by 6 sales channels with the following 2026 February period performance:

1. TV通販: 0.81 billion yen in revenue, 45.5% of total revenue, 3.9% year-over-year decline. Core products performed steadily, but performance was dragged down by slow new product launches, softer existing product sales, and delayed program airings shifting to the next period.
2. ベンダー販売: 0.331 billion yen in revenue, 18.6% of total revenue, 6.2% year-over-year decline. The 99Tsukumo傘 and 瞬撥水Tsukumo傘 umbrella lines performed strongly, but declines from other existing products offset this growth due to intensifying competition and shifting consumer demand.
3. インターネット通販: 0.545 billion yen in revenue, 30.6% of total revenue, 23.3% year-over-year decline (the largest drop among all channels). Top products remained solid, but reduced SKU counts after the elimination of previously impaired products caused lower site traffic and overall audience draw.
4. セールスプロモーション: 0.033 billion yen in revenue, 1.9% of total revenue, 54.6% year-over-year decline. The drop was driven by fewer event appearances, reflecting a structural shortage of active demonstration sales staff.
5. デモカウ: 0.035 billion yen in revenue, 2.0% of total revenue, 5.8% year-over-year decline. Core products drove sales, but results still came in slightly below prior year levels.
6. わくたん: 0.021 billion yen in revenue, 1.2% of total revenue, 7.9% year-over-year decline. While crowdfunding grew in members and projects (setting two all-time single-project funding records), slower Q4 project growth pulled full-year results below prior year after the デモカウ EC site was rebranded and integrated into わくたんマーケット.

• The company is currently out of compliance with the Tokyo Stock Exchange Growth Market's listed circulating market capitalization requirement, and faces the risk of delisting if it cannot regain compliance within the required timeline.
• All sales channels experienced year-over-year revenue declines in the 2026 February period, with intensifying market competition and shifting consumer demand pressuring performance across the business.
• There is a structural shortage of active, high-quality demonstration sales staff, which has materially hurt the sales promotion channel and limits business expansion.
• Internet direct sales saw a 23.3% revenue decline, driven by structural issues with reduced SKU counts and lower audience draw that will require strategic investment to reverse.
• Geopolitical risks including the Iran conflict, prolonged Ukraine war, Taiwan Strait tensions, and Trump-era tariff pressures have all weighed on consumer sentiment, creating ongoing external headwinds for consumer spending.

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