Improving Core Business Profitability and Product Efficiency
First written in FY2017-Q1. 20 of 41 entries say "Advanced", first in FY2017-Q2. Latest entry: FY2027-H1.
Palemo Holdings moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2025: 18 of 106 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「As a result, for the interim consolidated accounting period, net sales were ¥6.838 billion, down 4.7% year on year; operating profit was ¥71 million, down 60.3%; ordinary profit was ¥58 million, down 66.8%; and interim net income attributable to owners of the parent was ¥15 million, down 86.2%.」
Revenue, operating profit, ordinary profit and interim net profit attributable to owners of the parent all fell below the prior-year period, and profitability metrics, including those for core businesses, declined. - FY2026-H1Operating and ordinary profit declined while interim net profit increasedAnnual report
「As a result, during the six-month consolidated accounting period, sales were ¥7,174 million, down 8.4% year on year, operating profit was ¥181 million, down 31.0%, ordinary profit was ¥175 million, down 29.9%, and interim net profit attributable to owners of the parent was ¥113 million, up 7.5%.」
Revenue, operating profit and ordinary profit were below the same period of the previous year, while interim net profit attributable to owners of the parent was higher. Profitability trends differed by earnings item. - FY2025WorsenedAnnual report
「As a result, during the consolidated fiscal year, sales were ¥15,040 million, down 5.6% year on year, operating profit was ¥214 million, down 40.7%, ordinary profit was ¥162 million, down 51.6%, and net loss attributable to owners of the parent was ¥47 million, compared with net profit attributable to owners of the parent of ¥411 million in the previous fiscal year.」
Operating profit and ordinary profit remained positive but declined year on year, while net profit attributable to owners of the parent shifted from a profit of ¥411 million to a loss of ¥47 million. Profitability deteriorated on a full-year basis. - FY2025-H1WorsenedAnnual report
「As a result, during the six-month consolidated accounting period, sales were ¥7,834 million, down 6.9% year on year, operating profit was ¥262 million, down 42.2%, and ordinary profit was ¥249 million, down 42.9%. Interim net profit attributable to owners of the parent was ¥105 million, down 79.3%, due to the recognition of ¥143 million in impairment losses on stores that had remained loss-making from operating activities and were judged unable to recover the carrying value of their fixed assets.」
Operating profit, ordinary profit, and interim net profit remained positive, but declined 42.2%, 42.9%, and 79.3%, respectively, year on year, resulting in a substantial decline in profit levels. - FY2025-Q1WorsenedAnnual report
「As a result, during the three-month period ended 30 June, sales were ¥3,803 million, down 6.1% year on year, operating profit was ¥78 million, down 58.4%, ordinary profit was ¥71 million, down 60.2%, and quarterly net profit attributable to owners of the parent was ¥72 million, down 58.6%.」
Operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent remained positive, but declined 58.4%, 60.2%, and 58.6%, respectively, year on year, indicating that profitability had deteriorated from the previous fiscal year’s level. - FY2024WorsenedAnnual report
「As a result, during the consolidated fiscal year, sales were ¥15,941 million, down 9.0% year on year, operating profit was ¥362 million, down 31.2%, and ordinary profit was ¥336 million, down 42.0%. Net profit attributable to owners of the parent was ¥411 million, down 26.7%, due to the recognition of ¥121 million in impairment losses on stores that had remained loss-making from operating activities and were judged unable to recover the carrying value of their fixed assets.」
Operating profit, ordinary profit, and net profit remained positive, but declined 31.2%, 42.0%, and 26.7%, respectively, year on year, indicating lower profit levels. - FY2024-Q3Operating and ordinary profit declined year on yearAnnual report
「As a result, during the nine-month period ended 31 December, sales were ¥12,024 million, down 9.5% year on year, operating profit was ¥399 million, down 9.6%, and ordinary profit was ¥386 million, down 22.5%. Quarterly net profit attributable to owners of the parent was ¥584 million, up 38.4%, due to compensation received in connection with the termination of store lease agreements and other matters being recorded as extraordinary income.」
Operating profit and ordinary profit were below the prior-year levels, while quarterly net profit exceeded the prior-year level because compensation was recorded as extraordinary income. Profitability trends differed by profit measure. - FY2024-Q2AdvancedAnnual report
「Operating profit: ¥454 million, up 7.4% year on year」
Operating profit increased from ¥422.828 million in the same period of the previous year to ¥454.124 million, indicating numerical progress in improving the profitability of the core businesses. - FY2024-Q1AdvancedAnnual report
「As a result, during the three-month period ended 30 June, sales were ¥4,050 million, down 13.1% year on year, operating profit was ¥188 million, up 9.4%, ordinary profit was ¥180 million, up 8.8%, and quarterly net profit attributable to owners of the parent was ¥174 million, up 14.0%.」
Although sales declined year on year, operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent all exceeded the prior-year levels, indicating numerical progress in improving profitability. - FY2023-Q3AdvancedAnnual report
「As a result, during the nine-month period ended 31 December, sales were ¥13,280 million, up 2.4% year on year, operating profit was ¥442 million, compared with an operating loss of ¥682 million in the same period of the previous year, ordinary profit was ¥497 million, compared with an ordinary loss of ¥691 million, and quarterly net profit attributable to owners of the parent was ¥422 million, compared with a quarterly net loss attributable to owners of the parent of ¥1,096 million.」
Operating loss, ordinary loss, and quarterly net loss in the same period of the previous year shifted to operating profit of ¥442 million, ordinary profit of ¥497 million, and quarterly net profit of ¥422 million, respectively, continuing the numerical progress in improving profitability. - FY2023-Q2AdvancedAnnual report
「As a result, during the six-month period ended 30 September, sales were ¥9,254 million, up 7.7% year on year, operating profit was ¥422 million, compared with an operating loss of ¥311 million in the same period of the previous year, ordinary profit was ¥486 million, compared with an ordinary loss of ¥317 million, and quarterly net profit attributable to owners of the parent was ¥461 million, compared with a quarterly net loss attributable to owners of the parent of ¥506 million.」
During the six-month period, all profit measures returned to positive territory from operating loss, ordinary loss, and quarterly net loss in the same period of the previous year, indicating numerical progress in improving profitability, including in the core businesses. - FY2023-Q1AdvancedAnnual report
「As a result, during the three-month period ended 30 June, sales were ¥4,661 million, up 11.0% year on year, operating profit was ¥172 million, compared with an operating loss of ¥246 million in the same period of the previous year, ordinary profit was ¥165 million, compared with an ordinary loss of ¥249 million, and quarterly net profit attributable to owners of the parent was ¥153 million, compared with a quarterly net loss attributable to owners of the parent of ¥296 million.」
The first quarter shifted from an operating loss, ordinary loss, and quarterly net loss in the same period of the previous year to operating profit of ¥172 million, ordinary profit of ¥165 million, and quarterly net profit attributable to owners of the parent of ¥153 million, demonstrating measurable progress in improving profitability. - FY2022AdvancedAnnual report
「As a result, during the consolidated fiscal year, sales were ¥17,907 million, down 1.9% year on year, operating loss was ¥709 million, compared with an operating loss of ¥1,325 million in the same period of the previous year, and ordinary loss was ¥674 million, compared with an ordinary loss of ¥1,321 million. Net loss attributable to owners of the parent was ¥1,393 million, compared with a net loss attributable to owners of the parent of ¥1,880 million in the previous fiscal year, including ¥507 million in impairment losses on stores that had remained loss-making from operating activities and were judged unable to recover the carrying value of their fixed assets, as well as ¥671 million in total extraordinary losses, including penalties arising from store closures.」
Operating loss narrowed from ¥1,325 million to ¥709.581 million, while net loss narrowed from ¥1,880 million to ¥1,393 million. Although the Company has not returned to profitability, the figures indicate full-year progress toward improved profitability. - FY2022-Q3Operating loss narrowed; net loss widenedAnnual report
「As a result, during the nine-month period ended 31 December, sales were ¥12,970 million, down 4.3% year on year, operating loss was ¥682 million, compared with an operating loss of ¥897 million in the same period of the previous year, ordinary loss was ¥691 million, compared with an operating loss of ¥895 million in the same period of the previous year, and quarterly net loss attributable to owners of the parent was ¥1,096 million, compared with a quarterly net loss attributable to owners of the parent of ¥932 million.」
Operating loss and ordinary loss narrowed year on year, while quarterly net loss attributable to owners of the parent widened. The improvement in profitability was limited, and losses continued. - FY2022-Q2AdvancedAnnual report
「As a result, during the six-month period ended 30 September, sales were ¥8,597 million, up 2.7% year on year, operating loss was ¥311 million, compared with an operating loss of ¥771 million in the same period of the previous year, ordinary loss was ¥317 million, compared with an ordinary loss of ¥766 million, and quarterly net loss attributable to owners of the parent was ¥506 million, compared with a quarterly net loss attributable to owners of the parent of ¥953 million.」
Sales increased 2.7% year on year, and operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all narrowed from the same period of the previous year. However, losses continued. - FY2022-Q1AdvancedAnnual report
「As a result, during the three-month period ended 30 June, sales were ¥4,199 million, up 40.9% year on year, operating loss was ¥246 million, compared with an operating loss of ¥955 million in the same period of the previous year, ordinary loss was ¥249 million, compared with an ordinary loss of ¥950 million, and quarterly net loss attributable to owners of the parent was ¥296 million, compared with a quarterly net loss attributable to owners of the parent of ¥1,040 million.」
Operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all narrowed substantially from the same period of the previous year, indicating measurable progress toward improved profitability. However, losses continued at each level. - FY2021WorsenedAnnual report
「As a result, during the consolidated fiscal year, sales were ¥18,257 million, down 24.2% year on year, operating loss was ¥1,325 million, compared with operating profit of ¥504 million in the previous fiscal year, ordinary loss was ¥1,321 million, compared with ordinary profit of ¥494 million, and net loss attributable to owners of the parent was ¥1,880 million, compared with net profit attributable to owners of the parent of ¥350 million.」
Profitability company-wide, including in the core businesses, shifted from operating profit, ordinary profit, and net profit in the previous fiscal year to substantial losses, indicating a deterioration in the previous progress toward improved profitability on a full-year basis. - FY2021-Q3WorsenedAnnual report
「During the nine-month period ended 31 December, sales were ¥13,559 million, down 25.0% year on year, operating loss was ¥897 million, compared with operating profit of ¥443 million in the same period of the previous year, ordinary loss was ¥895 million, compared with ordinary profit of ¥432 million, and quarterly net loss attributable to owners of the parent was ¥932 million, compared with quarterly net profit attributable to owners of the parent of ¥348 million.」
Profitability deteriorated company-wide, including in the core businesses, shifting from operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent in the same period of the previous year to an operating loss of ¥897 million, an ordinary loss of ¥895 million, and a quarterly net loss attributable to owners of the parent of ¥932 million. - FY2021-Q2WorsenedAnnual report
「During the six-month period ended 30 September, sales were ¥8,371 million, down 33.1% year on year, operating loss was ¥771 million, compared with operating profit of ¥634 million in the same period of the previous year, ordinary loss was ¥766 million, compared with ordinary profit of ¥625 million, and quarterly net loss attributable to owners of the parent was ¥953 million, compared with quarterly net profit attributable to owners of the parent of ¥532 million.」
Following the first quarter, the Company continued to record an operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent on a company-wide basis, including the core businesses, with profitability continuing to shift from the prior-year surplus to a deficit. - FY2021-Q1WorsenedAnnual report
「As a result, during the three-month period ended 30 June, sales were ¥2,980 million, down 52.0% year on year, operating loss was ¥955 million, compared with operating profit of ¥347 million in the same period of the previous year, ordinary loss was ¥950 million, compared with ordinary profit of ¥334 million, and net loss attributable to owners of the parent was ¥1,040 million, compared with net profit attributable to owners of the parent of ¥280 million.」
A reversal from the previous progress in improving the profitability of the core businesses occurred, and the Company recorded an operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent in the first quarter. - FY2020-Q3AdvancedAnnual report
「Accelerated openings of Ilusi 300, a ¥300-price-point general merchandise format, alongside the closure of unprofitable stores resulted in sales of ¥17,353 million, up 4.4% year on year, and operating profit of ¥420 million, up 2.6%.」
In the store-based retailing business, the closure of unprofitable stores and accelerated openings of Ilusi 300 resulted in sales of ¥17,353 million and operating profit of ¥420 million, up 2.6% year on year. - FY2020-Q2AdvancedAnnual report
「During the six-month period ended 30 September, sales increased 5.1% year on year to ¥12,036 million and operating profit increased 13.9% to ¥611 million, due to accelerated openings of ¥300-price-point general merchandise stores and the closure of unprofitable stores.」
Accelerated openings of ¥300-price-point general merchandise stores and the closure of unprofitable stores resulted in operating profit of ¥611 million in the store-based retailing business, up 13.9% year on year. This demonstrated measurable progress in improving the profitability of the core businesses. - FY2020-Q1AdvancedAnnual report
「Operating profit was ¥340 million, up 41.5% year on year, as existing stores, mainly in the apparel business, performed steadily.」
Operating profit in the store-based retailing business was ¥340 million, up 41.5% year on year, indicating measurable progress in improving the profitability of the core businesses. - FY2019AdvancedAnnual report
「Over the past four years, the Company implemented measures to improve merchandising accuracy and, particularly in its apparel business, achieved optimization of product supply and improved merchandise freshness. To further maintain and improve performance, it will enhance the profitability of its core businesses by improving the quality of product supply and sales services across all brands, including those in its general merchandise business.」
The Company cites the achievement of optimized product supply and improved merchandise freshness in apparel and is moving toward a policy of improving the profitability of its core businesses by raising the quality of product supply and sales services across all brands, including general merchandise. - FY2019-Q3RestatedAnnual report
「Under these circumstances, the Group formulated a medium-term management plan, with the current fiscal year as its first year, to achieve growth across the Group. In its apparel business, it pursued optimization of product assortments and inventory by improving the accuracy of seasonal merchandising, while in its general merchandise business it worked to further strengthen the competitiveness of its core businesses by reorganizing merchandising across each business format.」
The Company reaffirmed its initiatives to optimize the apparel product assortment and inventory and reorganize merchandising in general merchandise to improve the competitiveness and profitability of its core businesses. - FY2019-Q2RestatedAnnual report
「In apparel, we pursued optimization of the product assortment and inventory by improving the accuracy of seasonal merchandising. In general merchandise, we worked to further strengthen the competitiveness of our core businesses by reorganizing merchandising across each format.」
The Company continues to optimize the apparel product assortment and inventory and reorganize merchandising in general merchandise to improve the competitiveness of its core businesses. - FY2019-Q1RestatedAnnual report
「In apparel, we pursued optimization of the product assortment and inventory by improving the accuracy of seasonal merchandising. In general merchandise, we worked to further strengthen the competitiveness of our core businesses by reorganizing merchandising across each format.」
The Company is pursuing further competitiveness in its core businesses by optimizing the apparel product assortment and inventory and reorganizing merchandising in general merchandise. - FY2019-Q1RestatedAnnual report
「In apparel, we pursued optimization of the product assortment and inventory by improving the accuracy of seasonal merchandising. In general merchandise, we worked to further strengthen the competitiveness of our core businesses by reorganizing merchandising across each format.」
The Company continues to pursue seasonal merchandising, product-assortment and inventory optimization in apparel, and merchandising reorganization in general merchandise, to improve the competitiveness and profitability of its core businesses. - FY2018AdvancedAnnual report
「To maintain and further improve performance, we will further improve the profitability and stability of our core businesses by increasing merchandising accuracy and improving quality on both the product-supply and sales-service fronts. As a result, company-wide same-store sales were maintained at 100.0% of the prior-year level.」
The Company specified measures to improve and stabilize the profitability of its core businesses and reported full-year same-store sales of 100.0% of the prior-year level company-wide. - FY2018-Q3AdvancedAnnual report
「During the nine-month period ended 31 December, optimization of merchandise freshness through appropriate inventory control became established in the apparel business, which progressed steadily despite temporary effects from changing weather conditions. In the general merchandise business, the bags format continued to struggle amid a downturn in the overall market. However, the accuracy of merchandising for ¥300-price-point general merchandise improved, and merchandise freshness, particularly for seasonal products, improved year on year, resulting in steady performance for the general merchandise business as a whole.」
Optimization of merchandise freshness through appropriate inventory control became established, while merchandising accuracy and merchandise freshness for ¥300-price-point general merchandise also improved. - FY2018-Q2AdvancedAnnual report
「In store-based retailing, the apparel business struggled with summer-season products, resulting in a slight decline in same-store sales. In the general merchandise business, however, same-store sales increased as inventory optimization and improved merchandise freshness progressed. As a result, sales were ¥11,674 million, down 7.7% year on year, and operating profit was ¥649 million, up 16.4%.」
Inventory optimization and improved merchandise freshness in the general merchandise business progressed, and operating profit in the store-based retailing business was ¥649 million, up 16.4% year on year. The Company demonstrated measurable progress in improving the profitability of its core businesses. - FY2018-Q1AdvancedAnnual report
「In store-based retailing, same-store sales remained broadly in line with the previous year at 99.9% of the prior-year level. However, sales declined 8.7% year on year to ¥5,766 million, reflecting the impact of closing unprofitable stores in the previous fiscal year. Operating profit increased 7.9% to ¥358 million as profitability improved year on year, mainly in the general merchandise business.」
Operating profit in the store-based retailing business was ¥358 million in the first quarter, up 7.9% year on year, indicating measurable progress in improving the profitability of the core businesses. - FY2017AdvancedAnnual report
「Business-structure reforms reduced inventory and significantly improved merchandise freshness over the past 2 years. Going forward, under the themes of merchandising transformation and service transformation, we will further pursue optimization of product supply and the sales structure to further improve the profitability of our core businesses.」
The Company cites inventory reduction and a significant improvement in merchandise freshness over the past 2 years and targets further profitability improvement through optimization of product supply and the sales structure. - FY2017-Q2AdvancedAnnual report
「During the six-month period ended 30 September, optimization of product supply and inventory control in the apparel business, initiatives undertaken since the previous fiscal year, improved the freshness of merchandise in stores and led to continued customer support throughout the period.」
The Company explains that optimizing product supply and inventory control improved merchandise freshness, resulting in same-store sales of 104.1% of the prior-year level. - FY2017-Q1First statedAnnual report
「Continuing from the previous fiscal year, we strengthened initiatives to return to net profitability by pursuing measures under the merchandising transformation and service transformation programs to improve the profitability and product efficiency of our core businesses, while continuing to close unprofitable stores.」
The Company aims to improve the profitability and product efficiency of its core businesses and return to net profitability.