Deterioration in the Cost of Sales Ratio and Gross Profit Margin Due to Rising Gold Prices

「Average gold prices during the interim consolidated accounting period increased 63.3% year on year, while platinum prices increased 95.4%. As surging raw-material prices pushed up the cost of sales, the gross profit margin declined 1.6 percentage points, and gross profit increased only 3.0% year on year.」

「In the consolidated fiscal year under review, the gold price rose 35.2% from the previous period, and soaring raw-material prices increased the cost of sales, causing the gross margin to decline 0.7 percentage points from the previous period.」

「Although higher raw material prices, including a 38.7% increase in the average gold price during the current interim consolidated accounting period, put pressure on cost of sales and reduced the gross profit margin 1.2 percentage points year on year, gross profit increased 3.7% year on year due to a substantial increase in sales.」

「Gross profit increased by ¥367 million, or 6.7%, year on year. Although higher raw material prices, including a 26.5% increase in the average gold price from the previous fiscal year, put pressure on cost of sales and reduced the gross profit margin by 0.5 percentage points, the increase in sales was substantial.」

「Although soaring raw material prices, including a 24.0% year-on-year increase in the average gold price for the nine-month period ended the third quarter, put pressure on the cost of sales, the company maintained the gross profit margin at the same level by pursuing an agile pricing strategy.」

「Although soaring raw-material prices, including a 19.7% increase in the average gold price during the period, put pressure on the cost of sales, the Company maintained the gross margin at the same level by pursuing an agile pricing strategy.」

「As soaring raw-material prices, including an 18.1% increase in the average gold price during the period, put pressure on the cost of sales, the gross margin declined 0.4 percentage points year on year.」

「Gross profit decreased by ¥101 million, or 2.5%, year on year, as the gross profit margin declined 0.5% year on year due to the impact of higher raw material prices, in addition to the decline in revenue.」

「Gross profit decreased by ¥69 million, or 2.4%, year on year. Although the gross profit margin remained at the same level year on year as prices were revised flexibly in response to higher raw material prices for bullion, diamonds and other materials, gross profit declined along with the decrease in revenue.」

「Gross profit decreased by ¥29 million, or 2.3%, year on year. In addition to sluggish sales of the core product “Wish upon a star,” particularly in bridal, higher prices for raw materials such as bullion and diamonds, driven by rising resource prices and foreign exchange factors, put pressure on cost of sales, causing the gross profit margin to decline 1.1 percentage points year on year.」

「Gross profit faced pressure from the simultaneous rise in raw-material prices and the depreciation of the yen.」

「Although gross profit margins were maintained at the same level through the effect of higher price points in response to the pressure on profit from soaring raw-material prices,」

「The jewelry industry in which the Group operates faced a challenging business environment requiring responses to various changes. In addition to being strongly affected by infection trends, including the Omicron variant, concern arose over the impact on earnings from the sharp rise in prices of raw materials such as bullion and diamonds.」

「Although lower revenue and factors such as soaring prices of bullion used as a raw material exerted downward pressure, sales of the flagship product “Wish upon a star” performed well, increasing 4.6% year on year, particularly in bridal and high-price segments. Together with the effect of raising price points, this lifted the gross margin by 4.3 percentage points year on year and contributed to higher profit.」

「The cost ratio for products increased because the average price of gold, a major raw material, rose 18.3% during the period, while the sales contribution of products manufactured by the Vietnamese subsidiary declined from 45.6% to 41.3% year on year. Continued inventory disposal measures also contributed, and the 2.8-percentage-point decline in the gross margin was a factor behind the decrease in profit.」

「In addition to the increase in the cost ratio resulting partly from the 17.9% rise in the average gold price during the period, the expansion of sales promotions accompanying the consumption tax rate increase and intensified inventory disposal measures contributed to a 4.5-percentage-point year-on-year decline in the gross margin.」