Businessweek

Wacoal Holdings Corp. engages in the design, manufacture, and marketing of women’s apparel primarily in Japan. As of March 31, 2012, the company had a total of 238 stores in its network in Japan, of which 155, including 18 factory outlet stores, carried brands other than Wacoal or Wing brands, such as those of Peach John Co., Ltd. (Peach John). Segments The company divides its businesses into four segments: Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John, and Other. Wacoal Business (Domestic) This segment comprises 21 companies all of which are based in Japan, and are principally engaged in the manufacture and distribution of apparel in Japan other than the businesses conducted by Peach John and Lecien Corporation (Lecien). The core products in this segment include innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, sportswear, hosiery, restaurant, culture and services. The five primary units within this segment include Wacoal Brand Business Department, which engages solely in businesses related to Wacoal brand products; Wing Brand Business Department, which engages solely in businesses related to Wing brand products; Retail Business Department, which engages solely in businesses through its direct retail stores accounted for under this segment, and primarily handles products from its specialty retail store brands, such as Amphi, as well as Wacoal brand products; Wellness Business Department, which engages primarily in businesses related to sports conditioning products and business footwear, including pumps for business women, and accounts for most of the sales of sports conditioning products and business footwear in this segment; and Catalog Sales Business Department, which engages in businesses through its catalog and Internet channels, and handles all of Wacoal brand, Wing brand, and Wellness products. Wacoal Business (Overseas) This segment comprises 19 companies, all of which are based outside Japan, and are principally engaged in the manufacture and distribution of apparel outside Japan. Included in this segment are its subsidiaries and affiliates in the United States, France, the United Kingdom, China, Vietnam, and other countries in Asia. The two primary units within this segment are its subsidiaries, Wacoal International Corp. and Wacoal China Co, Ltd. The core products in this segment include innerwear (foundation, lingerie, nightwear, and children’s innerwear), outerwear, sportswear, and hosiery. Peach John This segment comprises Peach John and three other related companies, which are principally engaged in mail-order sales of women’s apparel and various other apparel products for the Japanese market. The core products in this segment include innerwear (foundation, lingerie, nightwear, and children’s innerwear), outerwear, and other textile-related products. Other This segment comprises 13 companies, including Nanasai Co., Ltd. (Nanasai) and Lecien, which are principally engaged in the manufacture and sale of women’s innerwear and clothing for the Japanese market as well as, with regard to Nanasai, the manufacture and rental of mannequins and fixtures, and the interior design and construction of commercial premises, including sales counters used by its sales representatives in departments stores and other general retailers that carry its apparel. The core products in this segment include innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, and other textile-related products, as well as mannequins, shop design, and implementation. Product Categories The company’s principal product categories are innerwear (consisting of foundation garments and lingerie, nightwear and children’s underwear), outerwear and sportswear, hosiery, textile products, and other products. Innerwear Foundation Garments and Lingerie: The company’s foundation garments include brassieres, girdles and bodysuits (a one-piece combination brassiere and girdle). These products are available in various colors with variations in lace, trim, and detailing. Lingerie, consisting mainly of slips, bra-slips (a combination bra and slip), wo