United Arrows to sell COEN subsidiary to Gyet

United Arrows Ltd. has entered a basic agreement to sell all shares of its consolidated subsidiary, COEN Co., Ltd., to Gyet Co., Ltd., with the transaction targeted for completion by January 31, 2026. This divestiture aligns with United Arrows' "selection and concentration" strategy, aiming to optimize capital efficiency and its brand portfolio.

COEN, established in 2008, has faced challenges due to evolving consumer behavior and rising costs. While COEN improved its gross margin, its net sales declined from 10,702 million yen in January 2023 to 10,423 million yen in January 2025. Gyet Co., Ltd., formerly Mac House Co., Ltd., is an apparel retailer with a focus on M&A and brand restructuring, supported by GF Group's extensive network and expertise in supply chain optimization.

The share transfer, which is still subject to negotiation on terms and conditions, is expected to exclude COEN from United Arrows' consolidated subsidiaries. The company’s latest financial results for the six months ended September 30, 2025, showed net sales of 73,713 million yen, up 8.0%, but operating profit decreased by 19.5% to 2,378 million yen, and profit attributable to owners of parent fell by 40.6% to 1,127 million yen.