Human Made Discloses $3.6 Million Undercover Purchase Price and Long-Term Financial Targets

Japanese streetwear conglomerate Human Made has inked a definitive share purchase agreement to acquire 100 percent stake in the Undercover fashion label for a sum of 554 million yen, equivalent to $3.6 million. The deal, originally disclosed in June, is slated to finalize by February 2027. This acquisition unites two iconic Japanese designers - Human Made's Nigo and Undercover's Jun Takahashi, both emblematic figures of Tokyo's Uraharajuku fashion scene that has significantly influenced contemporary streetwear culture.

As part of the agreement, Takahashi will step down from his business management responsibilities at Undercover to devote his full attention to the brand as its head designer. In addition to this, Human Made disclosed plans to overhaul Undercover's operational architecture. The company intends to refocus its business model around direct-to-consumer channels, moving away from multi-brand department stores and establishing its own standalone retail outlets.

Similarly, Undercover's e-commerce operations will be shifted to a proprietary in-house platform, while overseas wholesale partners will be reviewed and optimized.

Human Made aims to boost Undercover's annual net sales from the current level of 3.6 billion yen to 5.5 billion yen within the next five years. According to the latest available figures, Undercover's net sales dropped slightly from 3.69 billion yen in the fiscal year ending June 2024 to 3.59 billion yen in the fiscal year ending June 2026.

Over the same period, Undercover's operating income declined from 127 million yen to 65 million yen. The final purchase price for Undercover was finalized after Human Made revised its full-year sales forecast upwards to 19.2 billion yen ($128 million) following the brand's record-breaking second-quarter performance.