BookOff Group Holdings, one of Japan’s best-known second-hand retail chains, reported a sharp increase in operating profit in its latest earnings release, helping push its stock to a record high since listing. Market analysis linked that performance to a jump in demand for trading cards and related collectibles, which has helped offset weak sales of used books and video games.
Trading cards overtake legacy product categories
According to the company’s earnings figures, sales of trading cards and related products have risen year after year. The scale of that business has now surpassed BookOff’s traditional core categories, including used books, CDs and game software.
The report describes the shift as a meaningful change in BookOff Group Holdings’ business structure. The company has long been associated with conventional second-hand goods, but trading cards and collectibles are now taking a larger role in driving both revenue and operating profit.
Higher-priced collectibles support margins
The analysis said trading cards are lifting profitability because they often change hands at relatively high prices among collectors. By contrast, the broader book market is facing stalled growth, and expectations for used-book expansion remain restrained.
Takashi Hiroki, an analyst at Monex Securities, said used books offer limited profit room in a market that is already highly saturated. If higher-priced trading cards become a featured product line, active trading can materially improve conversion rates and make it easier for a retailer to turn a profit.
Strong earnings reinforce investor optimism
With trading card sales contributing more to results, BookOff Group Holdings delivered what the report described as a very strong operating profit performance in its latest earnings release. That has strengthened long-term growth expectations in the capital market.
The article said investors and institutions remain optimistic about BookOff, with fund inflows acting as a key driver behind the stock’s repeated record highs. It added that, as physical publishing and traditional entertainment markets contract, the company has used higher-resale-value trading cards to build a more profitable line of business. Active secondary-market trading among collectors has also added cash flow and liquidity to the category.