Sanrio Co. Ltd.

At Tokyo Game Show 2026, which opened on the 17th, companies from outside the gaming industry are drawing attention with their first-ever exhibits, including Sanrio, which announced in April that it was making a full-scale entry into the gaming business, and major semiconductor maker Kioxia. Sanrio is developing games that make use of the world of its popular characters, and unveiled titles including Sanrio Party Land, scheduled for release in October as its first offering, while Hello Kitty appeared on stage to entertain visitors. Senior Managing Executive Officer Kosuke Hamazaki said, "We want even people who don't play games much to give them a try." Commercial kitchen equipment maker Nakanishi Manufacturing exhibited for the first time a game set in a cafeteria in another world, and many companies took on the challenge, with PARCO showing three indie titles that can be developed on a low budget and Toei also setting up a booth where visitors can try three titles before their release. Kioxia displayed high-speed storage devices for game consoles of the kind also used in international esports competitions, while Mizuno introduced its latest game controllers and high-performance gaming chairs. Atsuo Nakayama, a specially appointed professor at Nihon University who is well versed in the entertainment industry, said, "Games can keep users engaged for a long time, so every industry is always looking to move in. The market is expanding, and there is still room to enter."

The Chinese government is looking to cultivate anime, games and related products into a new pillar of service exports. The aim is to strengthen soft power that is less vulnerable to trade friction, improve the country's image, and thereby spread domestic brands. At the China International Fair for Trade in Services, a service-industry exhibition held by the Ministry of Commerce and the city of Beijing through the 13th, a new booth was set up to support Chinese companies expanding overseas, and the government has positioned games, anime and dramas as the "new three" of cultural export. Chinese toy giant Pop Mart displayed collaboration products featuring its own Skullpanda and Sanrio's My Melody, and has previously teamed up with Myaku-Myaku, the official mascot of the Osaka Expo, and the Japanese singer XG. Fellow toymaker 52TOYS, under an official license from Capcom, turned the protagonist of the fighting game Street Fighter 6 into a figure. The economic impact generated by China's cultural and related industries reaches 6 trillion yuan a year, approaching the world's largest, but there are still few characters loved around the world for as long as Mickey Mouse or Hello Kitty.

Seven-Eleven Japan announced on the 8th that it will jointly develop clothing and fashion accessories with a subsidiary of major apparel maker And ST Holdings (HD), and will sequentially launch them at stores nationwide from the 25th. The company aims to strengthen its product lineup with exclusive products for Seven-Eleven, attract younger customers, and double its apparel sales revenue compared to fiscal 2025. The products to be sold include Seven-Eleven exclusive T-shirts from popular And ST HD brands such as "niko and..." and "LOWRYS FARM," as well as socks and hair ties, totaling 28 items including seasonal scarves and gloves. From late October, the company will also introduce 10 collaborative items, including sweatshirts featuring Sanrio's popular character Hello Kitty.

GENDA rebounded. The company announced a business alliance with Sanrio to expand limited-edition prize offerings globally and to explore collaboration in the media mix field, which appears to be viewed positively by the market.

GENDA, which operates amusement facilities such as GiGO, announced on the 24th that it will form a business alliance with Sanrio. The two companies aim to improve their corporate value by expanding prize offerings that use Sanrio character IP at amusement facilities in Japan and overseas. In addition to operating GiGO in Japan, GENDA operates about 13,000 amusement facilities and mini-locations in North America through consolidated subsidiaries. Through this alliance, the companies will increase the frequency and scale of GENDA-exclusive prizes featuring Sanrio characters at these stores, and will also jointly pursue store decoration planning, promotions in North America, and new store openings. The two companies will also consider collaborating on media mix development of content. The impact on consolidated results for the fiscal year ending January 2027 is expected to be minor.

Target has named Chandhu Nair its first-ever chief AI officer and senior vice president, joining from Lowe's where he was senior vice president of stores, data, AI and innovation. Nair will coordinate AI adoption across merchandising, operations, and inventory management, while Target also promoted Purvi Shah to senior vice president of user experience to integrate AI technology with customer design. In other moves, Kontoor Brands promoted Joseph Alkire to president and chief financial officer with global responsibility for Helly Hansen and Wrangler brands, and Canada Goose appointed Massimo Piombini to its board of directors. Sanrio promoted Jill Koch as chief brand officer for the U.S. and the Americas, Funko named Kristin Hamilton as chief commercial officer effective Aug. 24, and Epicor announced Vaibhav Vohra will become chief executive officer effective Oct. 1, succeeding Steve Murphy.

Sanrio hit a year-to-date high on the Tokyo market on July 30. For the fiscal year ending March 2026, the company reported consolidated revenue of 194 billion yen and operating profit of 77.8 billion yen, marking five consecutive years of revenue and profit growth to new records. Its asset-light model, with licensing accounting for 54 percent of revenue, is a key strength. Hello Kitty's profit contribution fell to 37.3 percent, while other characters such as Kuromi expanded to 46.5 percent, showing progress in reducing reliance on a single character. By region, Asia posted 38 billion yen, up 62.6 percent from the previous year, and Europe posted 11.5 billion yen, up 83.6 percent, both showing strong growth. The next first-quarter results are scheduled for release on August 10.

On the Tokyo stock market on July 27, Cover surged sharply for the first time in three days, hitting its daily limit up. The new title Hololive Dreams was recognized for capturing the number one sales ranking on both the App Store and Google Play. CyberAgent, whose subsidiary QualiArts co-developed the title, also extended gains. Sanrio rose for a third straight day after Mizuho Securities maintained its buy rating and raised its target price from 1,250 yen to 1,450 yen. Among the 96 registered game and entertainment stocks, 74 rose, 15 fell, and 7 were unchanged.

KLab hit its daily limit up temporarily in the afternoon session. The announcement after the morning close that it had signed a memorandum of understanding with an overseas defense company possessing advanced RF technology to promote the introduction of an anti-drone defense system in the UAE served as a catalyst. Among 96 game and entertainment-related stocks, 71 rose, 22 fell, and 3 were unchanged. Sanrio rebounded after Tokai Tokyo Securities maintained its outperform rating and raised its target price from 1,486 yen to 1,600 yen, while Nintendo extended its decline amid reports that UBS Securities lowered its target price from 8,100 yen to 7,100 yen.

In the morning session of the Tokyo stock market on July 6, gaming and entertainment stocks were mostly bought. CyberAgent and Cover were bought following the announcement of the release date for HoloDori, while Bushiroad extended its winning streak to seven days, buoyed by the news that pre-registrations for BanG Dream! Our Notes had surpassed 500,000. Sanrio rebounded on speculation that Tokai Tokyo Securities had raised its target price. The Nikkei 225 ended the morning session down 824.93 yen at 68,919.14 yen. Among the 99 registered gaming and entertainment stocks, 68 rose, 22 fell, and 9 were unchanged.

Sanrio shares swung sharply after the Hello Kitty owner issued a profit forecast that beat analyst estimates. The company expects operating income of $554 million for the year ending March 2027, exceeding the average analyst projection. Fourth-quarter net sales rose 27% year-over-year, also above estimates, signaling continued strength in its character and intellectual property business. The stock briefly surged nearly 12% in early Tokyo trading before reversing to a 5% decline and later trading little changed. The update followed a delay in full-year results due to an investigation into improper compensation involving a managing director who received around $1.68 million without proper approval.