Gross margin decline due to increased discount sales and write-offs
First written in FY2019-Q4. 8 of 10 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025MitigatedAnnual report
「Although profit was significantly affected by higher costs, including soaring raw material prices and labor costs, measures such as revisions to product policies and operating processes contributed to an increase in segment profit of 12.8% from the same period of the previous year to ¥2.132 billion.」
Revisions to product policies and operating processes enabled profit in the tenant business to increase despite the impact of higher costs, and measures to address the decline in profitability caused by discount sales and disposal are progressing. - FY2024-Q2MitigatedAnnual report
「Improved production planning accuracy and the implementation of efficient operating methods led to a higher full-price sales rate and lower losses, resulting in segment profit of ¥1.057 billion, up 7.7% from the same period of the previous year.」
Improved production planning accuracy and efficient operations raised the full-price sales rate and reduced losses. Measures to address the decline in the gross margin caused by discount sales and disposal are progressing, and profit in the tenant business also increased. - FY2022MitigatedAnnual report
「At existing stores, the company worked to refine and strengthen sales of top-selling products, while implementing promotional policies that highlighted expertise by product category and focusing on revitalizing sales floors.」
Promotions by product category, stronger sales efforts and appropriate operating plans helped control opportunity losses and disposal losses, leading to improved profit in the tenant business. - FY2022-Q3MitigatedAnnual report
「In terms of profit, in addition to higher revenue, the appropriate staffing and sales plans and other measures to control losses contributed to an increase in segment profit of 34.9% year on year to ¥1.248 billion.」
Losses continued to be controlled through appropriate staffing and sales plans, and segment profit from the tenant business increased 34.9% year on year to ¥1.248 billion. Measures to address the decline in the gross margin caused by discount sales and disposal are progressing. - FY2022-Q2MitigatedAnnual report
「As a result, total revenue from the tenant business was ¥20.726 billion, up 5.5% from the same period of the previous year. In terms of profit, in addition to higher revenue, the appropriate staffing and sales plans and other measures to control losses contributed to an increase in segment profit of 53.4% year on year to ¥946 million.」
Continued control of losses through appropriate staffing and sales plans contributed to improvements in gross profit and profit in the tenant business. - FY2022-Q1MitigatedAnnual report
「As a result, total revenue from the tenant business was ¥10.076 billion, up 9.8% from the same period of the previous year. In terms of profit, in addition to higher revenue, the appropriate staffing and sales plans and other measures to control losses contributed to an increase in segment profit of 991.4% year on year to ¥349 million.」
Losses were controlled through appropriate staffing and sales plans, and segment profit from the tenant business increased 991.4% year on year to ¥349 million. - FY2021-Q3MitigatedAnnual report
「In terms of profit, we strengthened coordination with the wholesale factories and expanded the range of delivered items, improving morning product availability and responding accurately to the earlier sales peak. This contributed to higher gross profit and lower markdown and disposal losses, but the substantial decline in sales resulted in segment profit of ¥924 million, down 12.5% from the same period of the previous year.」
Enhancements to the morning product lineup and measures to respond to the earlier sales peak led to an improvement in gross profit and reductions in discount and disposal losses. - FY2021-Q2MitigatedAnnual report
「In terms of profit, the company accurately responded to the shift of the sales peak to the morning, reducing discount losses. This contributed to an improvement in the gross profit margin and a reduction in disposal losses.」
Responding to the shift of the sales peak to earlier in the day reduced discount losses and disposal losses, contributing to an improvement in the gross profit margin. - FY2019MaterialisedAnnual report
「As described above, although strategic product policies and proactive sales efforts helped maintain sales at existing stores amid a decline in the number of stores, discount sales and disposal increased in some areas, lowering the gross margin. Revenue from the tenant business was therefore ¥40.388 billion, compared with ¥44.030 billion in the previous fiscal year, and segment profit was ¥1.144 billion, compared with ¥1.710 billion.」
As increased discount sales and disposal continued and the gross margin declined, segment profit from the tenant business fell from ¥1.710 billion to ¥1.144 billion. - FY2019-Q4MaterialisedAnnual report
「These forward-looking strategic product policies and proactive sales efforts contributed to higher revenue, but discount sales and disposal increased in some areas, lowering the gross margin. As a result, revenue from the tenant business was ¥33.203 billion, up 0.5% from the same period of the previous year, while segment profit was ¥1.038 billion, down 18.6%.」
Increased discount sales and disposal in the tenant business reduced the gross margin. While revenue increased, segment profit fell 18.6% year on year.