Strengthening Business Model Amid Increased Revenue and Reduced Profitability, Providing 100,000 Orders and 2.6 Million Units Annually; Next Phase Aims for Accelerated Growth Through Generative AI Utilization
Focus Inc., an original wear manufacturer, reported increased revenue but decreased profit for the fiscal year ended December 2025. However, gross profit margin, CVR, and repeat rates improved, strengthening its business model. For fiscal year 2026, the company will fully leverage generative AI to accelerate growth, targeting 4 billion JPY in sales and 250 million JPY in ordinary profit.
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- 📰 Published: May 7, 2026 at 19:19
- 🔍 Collected: May 7, 2026 at 10:31
- 🤖 AI Analyzed: May 8, 2026 at 03:16 (16h 44m after Collected)
Focus Inc. (Kai City, Yamanashi Prefecture), which handles e-commerce sales and production of original wear and goods, operates the original goods production site "CLAT-JAPAN" and has announced its financial results for the fiscal year ended December 2025. Sales for fiscal year 2025 reached approximately 3.735 billion JPY, an increase of approximately 434.4 million JPY compared to the previous year. On the other hand, expenses increased due to investments in advertising, measures to improve customer lifetime value (LTV), and initiatives to strengthen the production system, resulting in reduced profitability.
However, the gross profit margin improved to 46.7%, and both CVR (conversion rate) and repeat rates have increased. For fiscal year 2026, we aim to further accelerate the utilization of generative AI to achieve both improved customer satisfaction and profitability.
Scene of creating customer's design
■ Gross Profit Margin improved to 46.7%, CVR (conversion rate) and Repeat Rate also increased
In fiscal year 2025, by continuously promoting product and service differentiation and maintaining a high CVR, sales reached approximately 3.735 billion JPY (an increase of 434.4 million JPY year-on-year), resulting in increased revenue. The annual number of orders reached approximately 100,000, and the number of delivered units was approximately 2.6 million. However, the sales target of 3.95 billion JPY set at the beginning of the fiscal year was not achieved.
Nevertheless, from a business model perspective, the gross profit margin improved from 43.5% in the previous fiscal year to 46.7% in the current fiscal year, and both CVR and repeat rates have also improved. We believe this steadily demonstrates enhanced customer satisfaction and loyalty.
■ Reduced Profitability due to One-Time Investments, but System Strengthening Progresses
The background to not achieving the target was a decrease in site access due to fluctuations in search rankings. To compensate for the decrease in access, advertising expenses increased, with an additional investment of approximately 156 million JPY.
Furthermore, free sample provision measures were implemented with the aim of improving CVR and new customer loyalty. This was an initiative aimed at improving customer lifetime value (LTV), but it resulted in a significant short-term loss, leading to an increase in expenses of approximately 100 million JPY.
In addition, as we promoted in-house production and expanded production bases in line with business expansion, we conducted recruitment activities aimed at strengthening the production management system. However, the effect generated by recruitment investment did not reach the initially assumed level, and scout-related expenses of approximately 80 million JPY ultimately became a direct loss factor. It should be noted that both these free sample measures and recruitment investments were one-time factors specific to the current fiscal year and have now been resolved.
Going forward, we will continue to balance improved customer value and profitability by promptly verifying the effectiveness of each measure.
■ Full-Scale Utilization of Generative AI to Improve Profitability and Customer Experience
In fiscal year 2026, we are fully implementing generative AI across various operational processes. In particular, we are introducing generative AI in the initial design creation process after receiving design data from customers, thereby reducing design costs that were traditionally dependent on external parties.
This not only leads to cost reduction but also improves response speed and stabilizes proposal quality. We are currently building a system that is expected to improve the gross profit margin by approximately 1.5 to 2.0 percentage points.
Furthermore, in terms of customer acquisition, in addition to conventional SEO measures, we are also working on site optimization for the AI era (LLMO). By improving the structure to be appropriately evaluated not only by search engines but also by information referencing through generative AI, we aim to strengthen our long-term traffic base.
Moreover, to prevent one-time losses that occurred in the previous fiscal year, we are thoroughly monitoring expenditures on a weekly basis and establishing a management system that can quickly verify investment efficiency.
Through these initiatives, we aim to achieve sales of approximately 4 billion JPY and ordinary profit of approximately 250 million JPY in fiscal year 2026.
【About Focus Inc.】
Focus Inc. sells and produces custom-designed T-shirts, bags, towels, caps, etc., with prints and embroidery for event staff, merchandise, and corporate/store uniforms, primarily through e-commerce.
What we value most is that our customers' important days are successful and become the best memories.
Original goods production often comes with prerequisites such as "cannot proceed without a decided design" and "requires sufficient time for delivery," creating a situation where customers cannot place an order solely based on the desire to "create."
However, we believe that the customer's desire to "create" should be the starting point.
Therefore, we assist customers who find it difficult to materialize their ideas, acting as their agent to collaboratively create designs. We offer design creation at 0 JPY and unlimited revisions.
However, the gross profit margin improved to 46.7%, and both CVR (conversion rate) and repeat rates have increased. For fiscal year 2026, we aim to further accelerate the utilization of generative AI to achieve both improved customer satisfaction and profitability.
Scene of creating customer's design
■ Gross Profit Margin improved to 46.7%, CVR (conversion rate) and Repeat Rate also increased
In fiscal year 2025, by continuously promoting product and service differentiation and maintaining a high CVR, sales reached approximately 3.735 billion JPY (an increase of 434.4 million JPY year-on-year), resulting in increased revenue. The annual number of orders reached approximately 100,000, and the number of delivered units was approximately 2.6 million. However, the sales target of 3.95 billion JPY set at the beginning of the fiscal year was not achieved.
Nevertheless, from a business model perspective, the gross profit margin improved from 43.5% in the previous fiscal year to 46.7% in the current fiscal year, and both CVR and repeat rates have also improved. We believe this steadily demonstrates enhanced customer satisfaction and loyalty.
■ Reduced Profitability due to One-Time Investments, but System Strengthening Progresses
The background to not achieving the target was a decrease in site access due to fluctuations in search rankings. To compensate for the decrease in access, advertising expenses increased, with an additional investment of approximately 156 million JPY.
Furthermore, free sample provision measures were implemented with the aim of improving CVR and new customer loyalty. This was an initiative aimed at improving customer lifetime value (LTV), but it resulted in a significant short-term loss, leading to an increase in expenses of approximately 100 million JPY.
In addition, as we promoted in-house production and expanded production bases in line with business expansion, we conducted recruitment activities aimed at strengthening the production management system. However, the effect generated by recruitment investment did not reach the initially assumed level, and scout-related expenses of approximately 80 million JPY ultimately became a direct loss factor. It should be noted that both these free sample measures and recruitment investments were one-time factors specific to the current fiscal year and have now been resolved.
Going forward, we will continue to balance improved customer value and profitability by promptly verifying the effectiveness of each measure.
■ Full-Scale Utilization of Generative AI to Improve Profitability and Customer Experience
In fiscal year 2026, we are fully implementing generative AI across various operational processes. In particular, we are introducing generative AI in the initial design creation process after receiving design data from customers, thereby reducing design costs that were traditionally dependent on external parties.
This not only leads to cost reduction but also improves response speed and stabilizes proposal quality. We are currently building a system that is expected to improve the gross profit margin by approximately 1.5 to 2.0 percentage points.
Furthermore, in terms of customer acquisition, in addition to conventional SEO measures, we are also working on site optimization for the AI era (LLMO). By improving the structure to be appropriately evaluated not only by search engines but also by information referencing through generative AI, we aim to strengthen our long-term traffic base.
Moreover, to prevent one-time losses that occurred in the previous fiscal year, we are thoroughly monitoring expenditures on a weekly basis and establishing a management system that can quickly verify investment efficiency.
Through these initiatives, we aim to achieve sales of approximately 4 billion JPY and ordinary profit of approximately 250 million JPY in fiscal year 2026.
【About Focus Inc.】
Focus Inc. sells and produces custom-designed T-shirts, bags, towels, caps, etc., with prints and embroidery for event staff, merchandise, and corporate/store uniforms, primarily through e-commerce.
What we value most is that our customers' important days are successful and become the best memories.
Original goods production often comes with prerequisites such as "cannot proceed without a decided design" and "requires sufficient time for delivery," creating a situation where customers cannot place an order solely based on the desire to "create."
However, we believe that the customer's desire to "create" should be the starting point.
Therefore, we assist customers who find it difficult to materialize their ideas, acting as their agent to collaboratively create designs. We offer design creation at 0 JPY and unlimited revisions.