Rising raw material prices and labor costs due to labor shortages

「In the mail-order business in the United States, sales remained strong, but the review of tariff exemption rules for low-value imported goods and other measures accompanying changes in trade policy increased the tariff burden, creating a challenging profit environment.」

「During the interim consolidated accounting period ended 31 August 2025 (1 March 2025 to 31 August 2025), Japan's economy saw raw material prices and procurement costs for products rise amid continuing global uncertainty. In particular, the rising prices of essential goods increased the burden on households and further strengthened consumers' saving-conscious behavior. In the football products business, reduced supply resulting from labor shortages in the production process had an impact.」

「Meanwhile, the outlook remains uncertain due to the continuing unstable international situation, including the prolonged Russian invasion of Ukraine and worsening conditions in the Middle East, as well as developments in policy interest rates associated with the Bank of Japan's review of monetary policy and unstable foreign exchange markets.」

「Meanwhile, the outlook remains uncertain due to the prolonged Russian invasion of Ukraine, worsening conditions in the Middle East and continued yen depreciation in foreign exchange markets, among other factors.」

「The business environment surrounding the Group is expected to recover gradually, supported by improvements in income conditions resulting from wage increases and expanded inbound demand resulting from yen depreciation. At the same time, the outlook is expected to remain uncertain due to soaring raw material and energy prices, sharp fluctuations in foreign exchange markets and geopolitical risks spreading worldwide.」

「During the third-quarter cumulative consolidated period ended 30 November 2023 (1 March 2023 to 30 November 2023), the Japanese economy progressed toward normalization as restrictions on activities and entry restrictions were lifted following the reclassification of COVID-19 as a Category 5 infectious disease. Meanwhile, the outlook remains uncertain due to prolonged geopolitical risks, soaring raw material and energy prices, and sharp fluctuations in foreign exchange markets, among other factors.」

「The reclassification of the novel coronavirus as a Class 5 infectious disease lifted activity restrictions and entry controls, advancing the normalization of economic activity. However, the outlook remains uncertain because of the prolonged Russia-Ukraine situation and higher prices for goods and services resulting from sharp exchange-rate fluctuations.」

「The global and Japanese economies are expected to continue operating in an uncertain environment, including higher resource and raw material prices resulting from the prolonged situation involving Russia and Ukraine and rising prices against the backdrop of fluctuations in foreign exchange markets.」

「Meanwhile, the outlook remains uncertain due to higher prices for goods and services resulting from the rapid depreciation of the yen and soaring resource prices, as well as China's zero-COVID policy.」

「During the second-quarter cumulative consolidated period ended 31 August 2022 (1 March 2022 to 31 August 2022), the Japanese economy showed signs of recovery in personal consumption following the lifting of priority preventive measures in late March. However, the outlook remained uncertain due to the renewed spread of COVID-19 variants, China's zero-COVID policy, the situation in Ukraine and higher prices resulting from fluctuations in foreign exchange markets, among other factors.」

「The outlook remains uncertain due to the situation in Ukraine and higher prices resulting from fluctuations in foreign exchange markets, among other factors.」

「Looking ahead, the outlook is expected to remain uncertain for the time being due to the renewed spread of COVID-19 variants, developments in geopolitical risks and soaring raw material prices.」

「Following the lifting of the declaration of a state of emergency related to COVID-19 in October, consumer spending has begun to show signs of recovery, but the outlook remains uncertain.」

「The reissuance of the declaration of a state of emergency and the expanded application of priority preventive measures resulted in extended closures and shorter operating hours for commercial facilities, restaurants and other businesses. Consumer purchasing appetite has remained stagnant, and the outlook remains uncertain.」

「Looking ahead, the outlook is expected to remain uncertain for the time being due to concerns over disruption and stagnation in economic activity resulting from COVID-19.」

「Even during the third-quarter cumulative consolidated period, it is assumed that restoring domestic sales and profit levels to the situation before the spread of the infection will take time beyond the end of the consolidated fiscal year.」

「Accordingly, it is assumed that it will take time beyond the end of the consolidated fiscal year to restore sales and profit levels to the situation before the spread of the infection.」

「From around February, economic activity began to stagnate because of the novel coronavirus outbreak. The declaration of a state of emergency in early April suppressed consumption and corporate activity nationwide, creating an extremely difficult operating environment.」

「Looking ahead, an economic environment with limited visibility is expected to continue for the time being due to the impact of climate change and COVID-19, as well as the growing tendency to protect household finances associated with the consumption tax increase.」

「However, uncertainty about the outlook continues due to the risk of weaker consumption resulting from the consumption tax increase and successive natural disasters, as well as a contraction in external demand resulting from prolonged US-China trade friction.」

「During the first-quarter cumulative consolidated period ended 31 May 2019 (1 March 2019 to 31 May 2019), the Japanese economy began to show some weakness in exports and production due partly to a slowdown in the Chinese economy resulting from intensifying US-China trade friction. In addition, concerns over a decline in consumption following the consumption tax increase scheduled for October have raised the possibility of an economic downturn, and the outlook remains uncertain.」

「Looking ahead, the economy is expected to remain on a gradual recovery trend, centered on domestic demand and supported by improvements in employment and income conditions. However, the business environment is expected to remain challenging, with concerns over a slowdown in the global economy stemming from US-China trade friction, labor shortages, higher logistics costs, and increasingly saving-conscious consumer behavior associated with the consumption tax increase.」

「Meanwhile, economic uncertainty remains due to the impact on economic activity of prolonged US-originated trade friction, concerns over a slowdown in the Chinese economy as a result, and repeated natural disasters, among other factors.」

「However, in addition to concerns that trade friction between the United States and China will be prolonged, economic uncertainty remains elevated due to labor shortages in Japan and unfavorable weather conditions, among other factors.」

「However, in addition to growing protectionism under the US administration and rising geopolitical risks in East Asia, the outlook for the economy remains uncertain due to higher labor costs resulting from labor shortages in Japan and increased costs associated with higher logistics expenses.」

「Some observers have pointed out that saving-conscious behavior could strengthen again depending on the future trend in wage increases. The business environment is expected to remain challenging, including the impact of higher raw material prices and labor costs resulting from labor shortages.」