DESCENTE: From 44.5% to 100%Narrow moat

ITOCHU (8001) — moat facet

ITOCHU paid about ¥180 billion to own all of DESCENTE and nearly doubled its profit contribution in the first year.

ITOCHU held 44.5% of DESCENTE, the sportswear company, and in October 2024 acquired a further 41.48% by tender offer for ¥136,335 million1, taking its stake to 85.9% and then 100%2. The squeeze-out cost ¥46.2 billion in the first quarter of the year to March 20263.

DESCENTE (¥ bn)136.3Tender, Oct 202446.2Squeeze-out50.0Revaluation gain13.2Contribution,yr to Mar 2026ITOCHU FIR 2025 and results presentation, May 2026
A ¥180 billion purchase, a ¥50 billion accounting gain and ¥13 billion of annual profit.

The accounting produced a large gain: a ¥50.0 billion revaluation gain when DESCENTE became a consolidated subsidiary, which lifted the Textile division's profit in the year to March 20254. The business itself contributed ¥13.2 billion in the latest year, up from ¥7.0 billion5.

Under full ownership ITOCHU can integrate its brand business with its textile trading and retail relationships.

The stake moved in quarters: 44.5% in the first quarter of the year to March 2025, 85.9% in the third and 100% by the fourth6. The Textile division's core profit rose from ¥28.3 billion to ¥41.3 billion in the year to March 20267.

The measure is DESCENTE's contribution. Nearly doubling in the first full year is a strong start; sustaining growth would show the value was operational rather than the revaluation.

Moat trajectory: Widening

Contribution rose from ¥7.0 billion to ¥13.2 billion.

The number that tests this moat
Reported
DESCENTE contribution
¥13.2bn against ¥7.0bn

The first full year of ownership; growth shows the take-private adding value.

Source: ITOCHU business results and management plan, May 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
A Revaluation Gain Is Not Profit
Taking DESCENTE private produced a one-off gain larger than its annual profit.
References
  1. ReportedITOCHU held 44.5% of DESCENTE, the sportswear company, and in October 2024 acquired a further 41.48% by tender offer for ¥136,335 million, taking its stake to 85.9% and then 100%.
    ITOCHU Corporation, Financial Information Report 2025 - segment information for the years to March 2025 and 2024, and the DESCENTE tender offer. — FY to March 2025 · publ. 2025 · source ↗
  2. ReportedITOCHU held 44.5% of DESCENTE, the sportswear company, and in October 2024 acquired a further 41.48% by tender offer for ¥136,335 million, taking its stake to 85.9% and then 100%.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
  3. ReportedThe squeeze-out cost ¥46.2 billion in the first quarter of the year to March 2026.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
  4. ReportedThe accounting produced a large gain: a ¥50.0 billion revaluation gain when DESCENTE became a consolidated subsidiary, which lifted the Textile division's profit in the year to March 2025.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
  5. ReportedThe business itself contributed ¥13.2 billion in the latest year, up from ¥7.0 billion.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
  6. ReportedThe stake moved in quarters: 44.5% in the first quarter of the year to March 2025, 85.9% in the third and 100% by the fourth.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
  7. ReportedThe Textile division's core profit rose from ¥28.3 billion to ¥41.3 billion in the year to March 2026.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
Sources
Generated September 24, 2026