Higher freight and member recruitment expenses associated with the expansion of direct sales
First written in FY2017-Q1. 16 of 36 entries say "Mitigated", first in FY2020-Q1. Latest entry: 2026-08-14.
No other company in this theme has enough history to compare yet.
- 2026-08-14WorsenedResults
「利益面につきましては、会員募集費や減価償却費の減少があったものの、売上高の減少及び人件費の上昇の影響が大きく、減益となりました。」
会員募集費や減価償却費は減少した一方、人件費上昇と売上減少の影響により直販事業の減益が示されている。 - FY2026MitigatedAnnual report
「Although sales declined and personnel expenses increased, profit rose as a result of higher productivity from improvements in picking operations and the effect of price revisions.」
Although the direct-to-consumer business experienced lower sales and higher personnel expenses, operating profit increased 18.0% year on year as a result of price revisions and improvements in picking operations, reducing the relative impact of the cost burden. - FY2026-H1MitigatedAnnual report
「Profit increased as a result of improved operating efficiency in activities such as picking, in addition to higher sales and the effect of price increases, despite cost increases including freight expenses.」
Although higher freight and other costs continued, increased sales, price increases and improved efficiency in activities such as picking enabled the direct-to-consumer business to turn an operating loss into an operating profit, easing the impact of the cost burden. - FY2025WorsenedAnnual report
「To enhance the growth potential of the direct-to-consumer business, we will work to strengthen the business's uniqueness and competitiveness by improving the underlying brand strength, developing products exclusively for members, improving usability and further enhancing relationships with customers.」
In the direct-to-consumer business, although initiatives aimed at growth progressed, higher costs, including aggressive investment in member-acquisition costs, depreciation expenses for the new distribution center and higher personnel expenses, were factors behind the full-year decline in profit. - FY2025-H1WorsenedAnnual report
「Profit declined because of various factors, including strategic investment for future growth, such as higher personnel expenses to secure human resources and depreciation expenses for the new direct-to-consumer distribution center built last November, as well as higher procurement costs, including persistently high feed prices caused by the weaker yen, and lower subsidy income from the feed price stabilization fund.」
The cost burden associated with expanding the direct-to-consumer business and investing for growth, including personnel expenses to secure human resources, depreciation expenses for the new distribution center and persistently high feed prices, emerged as a factor behind the decline in profit. - FY2024-Q3WorsenedAnnual report
「Profit declined because of higher costs, including the purchase of fixtures and equipment for the newly constructed distribution center and higher personnel expenses.」
In the direct-to-consumer business, the cost of purchasing fixtures and equipment for the newly constructed distribution center and higher personnel expenses increased costs, resulting in a 6.2% year-on-year decline in operating profit. - FY2024-Q2MitigatedAnnual report
「Although there were cost increases, including higher personnel expenses, profit increased as a result of a lower selling, general and administrative expense-to-sales ratio through the efficient deployment of member-acquisition costs. As a result, sales in the direct-to-consumer business were ¥836 million, up 0.2% year on year, and operating profit was ¥58 million, up 50.0% year on year.」
Despite higher personnel expenses, the efficient deployment of member-acquisition costs lowered the selling, general and administrative expense ratio, and operating profit for the direct-to-consumer business increased 50.0%. - FY2024-Q1MitigatedAnnual report
「Profit increased as a result of a lower selling, general and administrative expense-to-sales ratio, owing to the efficient deployment of member-acquisition costs, in addition to sales-related factors.」
The company states that the efficient deployment of member-acquisition costs associated with membership expansion lowered the selling, general and administrative expense-to-sales ratio, easing the pressure that the cost burden had placed on profit. - FY2023-Q3MitigatedAnnual report
「Profit increased, driven by higher sales and the effect of price increases, as well as improved operating efficiency in activities such as picking.」
Although the company continued to invest aggressively in member-acquisition costs, higher sales, the effect of price increases and improved operating efficiency in activities such as picking resulted in a 136.9% year-on-year increase in operating profit for the direct-to-consumer business. - FY2023-Q2MitigatedAnnual report
「Profit increased, driven by higher sales and the effect of price increases, as well as improved operating efficiency in activities such as picking.」
In the direct-to-consumer business, improved operating efficiency in activities such as picking, in addition to the effect of price increases, contributed to higher profit, reducing the impact of the cost burden associated with expansion. - FY2023-Q1MitigatedAnnual report
「Profit increased, driven by higher sales and the effect of price increases, as well as improved operating efficiency in activities such as picking.」
Although the company continued to invest aggressively in member-acquisition costs as membership expanded, improved operating efficiency in activities such as picking contributed to higher profit, resulting in operating profit of ¥17 million for the direct-to-consumer business. - FY2022MitigatedAnnual report
「In terms of profit, although member recruitment expenses to acquire members increased, profit increased due to the rise in revenue and improved operating efficiency.」
Although member recruitment expenses increased, direct sales profit rose due to higher revenue and improved operating efficiency, reducing the relative impact of the cost burden. - FY2022-Q3WorsenedAnnual report
「In terms of profit, profit declined due to the proactive investment in member recruitment expenses to acquire members and the increase in the ratio of selling, general and administrative expenses, including freight and picking costs, to revenue. As a result, direct sales revenue was ¥1,236 million, up 14.2% year on year, and operating profit was ¥34 million, down 22.5%.」
The higher ratio of selling, general and administrative expenses, including freight and picking costs, to revenue actually materialized alongside recruitment expenses for expanding the membership base, and operating profit declined 22.5% even as revenue increased. - FY2022-Q2WorsenedAnnual report
「In terms of profit, profit declined due to the proactive investment in member recruitment expenses to acquire members and the increase in the ratio of selling, general and administrative expenses, including picking costs, to revenue.」
In addition to the proactive investment in recruitment expenses to acquire members, the higher ratio of selling, general and administrative expenses, including picking costs, to revenue is becoming a factor behind lower direct sales profit. - FY2022-Q1WorsenedAnnual report
「In terms of profit, profit declined due to the proactive investment in member recruitment expenses to acquire members and the increase in the ratio of selling, general and administrative expenses, including picking costs, to revenue.」
The proactive investment in recruitment expenses to expand the membership base and the higher ratio of selling, general and administrative expenses, including picking costs, to revenue became factors behind lower direct sales profit. - FY2021MitigatedAnnual report
「In terms of profit, although member recruitment expenses increased to expand the membership base, profit increased due to the rise in revenue and greater efficiency in picking and delivery.」
Although member recruitment expenses increased, greater efficiency in picking and delivery is described as a factor behind higher profit that more than offset the cost burden. - FY2021-Q3RestatedAnnual report
「In terms of profit, profit increased due to the rise in revenue and a reduction in the ratio of selling, general and administrative expenses, including picking costs, to revenue.」
For the cost burden, including picking costs, associated with the expansion of the direct sales business, the reduction in the ratio of selling, general and administrative expenses to revenue became a factor behind higher profit. - FY2021-Q2RestatedAnnual report
「In terms of profit, profit increased due to the rise in revenue and a reduction in the ratio of selling, general and administrative expenses, including picking costs, to revenue.」
The reduction in the ratio of selling, general and administrative expenses, including picking costs, to revenue continued to contribute to higher direct sales profit alongside the increase in revenue. - FY2021-Q1MitigatedAnnual report
「In the direct sales business, sales increased through both company-operated deliveries and parcel delivery due to the impact of COVID-19. In terms of profit, profit increased due to the rise in revenue and a reduction in the ratio of selling, general and administrative expenses, including picking costs, to revenue.」
In the direct sales business, the reduction in the ratio of selling, general and administrative expenses, including picking costs, to revenue became a factor behind higher profit alongside the increase in revenue, changing the previous structure in which the cost burden weighed on profit. - FY2020MitigatedAnnual report
「In terms of profit, profit increased due to the improvement in the gross margin and the decrease in selling, general and administrative expenses, including catalog costs and packing and wrapping costs.」
In the direct sales business, operating profit was ¥30 million due to the improved gross margin and lower selling, general and administrative expenses, turning a ¥3 million operating loss in the previous year into a profit. The impact of the cost burden associated with sales expansion has declined. - FY2020-Q3MitigatedAnnual report
「In terms of profit, profit increased due to the improvement in the gross margin and the decrease in selling, general and administrative expenses, including catalog costs and packing and wrapping costs. As a result, direct sales revenue was ¥789 million, down 0.7% year on year, and operating profit was ¥15 million, compared with a loss of ¥6 million in the same period of the previous year.」
Although direct sales revenue declined slightly, the business turned an operating loss into operating profit of ¥15 million through an improved gross margin and reductions in catalog costs, packing and wrapping costs and other expenses. - FY2020-Q2MitigatedAnnual report
「In terms of profit, despite the decline in revenue, profit increased due to the improvement in the gross margin and the decrease in selling, general and administrative expenses, including catalog costs.」
Despite the decline in revenue, the direct sales business nearly eliminated its operating loss of ¥16 million in the same period of the previous year through an improved gross margin and reductions in selling, general and administrative expenses, including catalog costs. - FY2020-Q1MitigatedAnnual report
「In terms of profit, despite the decline in revenue, profit increased due to the improvement in the gross margin and the decrease in selling, general and administrative expenses, including member recruitment expenses and catalog costs.」
Despite the decline in revenue, the direct sales business turned an operating loss in the same period of the previous year into operating profit through an improved gross margin and reductions in member recruitment expenses, catalog costs and other expenses. - FY2019ReframedAnnual report
「In terms of profit, profit declined due to the decrease in revenue.」
The explanation has shifted from the cost burden of freight, member recruitment expenses and picking costs to a decline in direct sales revenue as the primary cause of lower full-year profit. - FY2019-Q3RestatedAnnual report
「In terms of profit, profit declined due to lower revenue and increases in direct-sales-store renovation costs and member recruitment expenses.」
In the direct sales business, the combination of lower revenue and higher direct-sales-store renovation costs and member recruitment expenses continued to weigh on profit. - FY2019-Q2WorsenedAnnual report
「In terms of profit, profit declined due to lower revenue and increases in selling, general and administrative expenses, including direct-sales-store renovation costs and member recruitment expenses.」
In the direct sales business, revenue declined, resulting in an operating loss of ¥16 million due to direct-sales-store renovation costs, member recruitment expenses and other expenses. - FY2019-Q1WorsenedAnnual report
「In terms of profit, profit declined due to lower revenue and increases in selling, general and administrative expenses, including direct-sales-store renovation costs and member recruitment expenses.」
In the direct sales business, revenue declined, and the business posted an operating loss of ¥13 million due to higher direct-sales-store renovation costs, member recruitment expenses and other expenses. - FY2018-Q3WorsenedAnnual report
「The direct sales business delivers products, primarily food products, to members' homes. Revenue increased as nationwide parcel delivery sales grew, particularly in the Tokyo metropolitan area. In terms of profit, despite the increase in revenue, profit was at the same level as the previous period due to increases in selling, general and administrative expenses, including picking costs. As a result, direct sales revenue was ¥900 million, up 5.1% year on year, and operating profit was ¥8 million, down 9.9% year on year.」
While nationwide parcel delivery sales increased, direct sales operating profit fell 9.9% year on year due to higher picking costs and other expenses, with the cost burden associated with sales expansion weighing on profit. - FY2018-Q2RestatedAnnual report
「In terms of profit, despite the increase in revenue, profit was at the same level as the previous period due to the lower gross margin and increases in selling, general and administrative expenses, including picking costs.」
While direct sales revenue increased, the continued combination of a lower gross margin and higher picking costs and other expenses weighed on profit. - FY2018-Q1WorsenedAnnual report
「In terms of profit, despite the increase in revenue, profit declined due to a lower gross margin and increases in selling, general and administrative expenses, including picking costs.」
While direct sales revenue increased, profit declined due to the lower gross margin and higher picking costs and other expenses, with the cost burden associated with sales expansion continuing. - FY2017WorsenedAnnual report
「In terms of profit, profit declined due to increases in selling, general and administrative expenses, including freight and picking costs.」
While direct sales revenue increased 14.1% year on year, operating profit fell 80.5% due to freight, picking costs and other expenses, indicating a growing impact from the cost burden. - FY2017-Q3WorsenedAnnual report
「In terms of profit, profit declined due to increases in selling, general and administrative expenses, including freight and member recruitment expenses, despite the increase in revenue described above.」
Freight, member recruitment expenses and other costs continued to increase, resulting in a 44.2% year-on-year decline in direct sales profit and a shift from flat profit in the previous quarter to a decline. - FY2017-Q2RestatedAnnual report
「In terms of profit, although revenue increased as described above, profit was flat due to increases in selling, general and administrative expenses, including freight and member recruitment expenses.」
The burden of freight, member recruitment expenses and other costs associated with higher direct sales revenue continued, while profit remained flat. - FY2017-Q1First statedAnnual report
「In terms of profit, despite increases in selling, general and administrative expenses, including freight and member recruitment expenses, profit increased due to the rise in revenue described above.」
This states that sales-related expenses increased as the direct sales business expanded.