Editor’s Note
This article outlines the strategic position and growth trajectory of Primo Global Holdings, Japan’s leading bridal jewelry retailer. With a significant store network and a focus on international expansion, the company’s mid-term plan projects a continued upward trend in operating profit.
Primo Global Holdings, Japan’s largest bridal jewelry company engaged in planning and sales, operates 133 stores domestically and internationally, centered around its core brands “I-PRIMO” and “LAZARE DIAMOND”. The company has been a pioneer in overseas expansion. With expectations for increased domestic market share and overseas growth, operating profit CAGR (compared to FISCO’s forecast for the August 2026 term) until the August 2029 term is projected at +15%. The target stock price for the next year or so has been set at 5,077 yen.
In addition to increased customer traffic from marketing initiatives, timely price pass-throughs have also been effective, leading to record highs in both sales revenue and profit. Profitability is also improving significantly due to control of selling, general and administrative expenses and price revisions.
Summary
Full-year performance for the August 2026 term is forecasted to reach record highs, with sales revenue expected to increase 7.1% year-on-year to 30,000 million yen and operating profit expected to increase 16.5% to 3,650 million yen.
Our Analyst’s Comment
Summary
Quantitative targets for the Mid-Term Management Plan (August 2025 term to August 2027 term) include: Sales revenue CAGR of approximately 5-7%, Business profit CAGR of approximately 10-15%, Business profit margin of 12% or higher (August 2027 term), and ROE of 13% or higher (August 2027 term).
Our Analyst’s Comment
Strengths / Sources of Competitiveness
Differentiation factors include the select-order style combining diamonds with a wide range of ring designs, and hospitality-focused customer service. The company has strengths in human resource development to support the best customer experience.
Stock Price Upside Factors / Signs of Change
If overseas expansion progresses smoothly, including re-opening stores following the profitability of mainland China operations and the accelerated entry into Malaysia, there is significant upside potential for performance.
Shareholder Returns
Dividend per share for the August 2026 term is expected to be 120 yen, an increase of 15 yen from the previous term (payout ratio of 48.4%). The target payout ratio is 40% or higher. The direction is toward strengthening returns to achieve an ROE of 13%.
(Author: FISCO Analyst Taizo Yamamoto)
