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Japan-Update

Japan's Enigmo on track for second year of record profit

E-commerce site operator continues to enjoy robust growth

TOKYO -- Enigmo, which runs a popular consumer-to-consumer e-commerce site focusing on fashion items, seems likely to earn a second-straight record group operating profit in the current year through January 2018.

Operating profit is projected at around 2 billion yen ($17.5 million), up about 20% from the estimated figure for last fiscal year. Sales will probably go up 20% as well, bringing in roughly 5 billion yen. 

Enigmo's Buyma e-commerce site facilitates sales of clothing, accessories, cosmetics and other foreign products to consumers in Japan. In the current year, the company plans to expand product offerings, and boost the site's name recognition through television commercials and other advertising. These efforts, Enigmo hopes, will expand Buyma subscribers by 30% to about 5 million. The company will entice them to shop more by recommending products based on each subscriber's purchase history.

Enigmo's earnings for the year ended January appear to have come in line with forecasts. Sales likely soared 40% to slightly more than 4 billion yen, and operating profit probably increased eightfold to around 1.7 billion yen. The financial statement is due out on Wednesday.

While good results are expected, the company is likely to again forgo a dividend payout. The English version of the Buyma website, which began full operation in July targeting consumers in English-speaking markets, continues to suffer from operating losses. The company is also looking to increase investment in new businesses.

(Nikkei)

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