Changes in Fashion Cycles and Disposal Losses from Seasonal Products
First written in FY2017. 4 of 6 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2025.
Palemo Holdings moved to the "Worse" side of this theme in 2020, 2 years after the typical company in this theme (2018).
The whole theme swung hardest in 2024: 22 of 30 companies on the "Worse" side.
21 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「During the summer season, sales of summer products, particularly functional products such as UV-protection and cooling materials, performed well nationwide amid extreme heat. However, some regions experienced heavy rainfall due to the seasonal rain front and typhoons, and customer traffic tended to stagnate.」
While extreme heat boosted sales of functional summer products, heavy rainfall caused by the seasonal rain front and typhoons affected customer traffic. Weather- and season-related fluctuations in performance were also evident during the fiscal year. - FY2024MitigatedAnnual report
「After the start of the winter season, temperatures followed a typical winter pattern. In apparel, sales grew steadily, led by winter items such as outerwear and knitwear. During the sale period as well, the effects of procurement and inventory management significantly reduced disposal losses caused by excess inventory.」
It explains that although fashion-cycle and seasonal-product risks continue, the effects of excess inventory have been significantly reduced through more effective purchasing and inventory management. - FY2022-Q3MaterialisedAnnual report
「Prolonged heavy rain and cool conditions in August affected results, and sluggish sales of summer merchandise led to subsequent inventory disposal, resulting in a significant decline in the gross profit margin.」
It states that weak sales of seasonal products and actual inventory clearance led to a substantial decline in the gross profit margin. - FY2022-Q2MaterialisedAnnual report
「In the apparel business in particular, sales recovered while temperatures rose toward summer, but unseasonably cool weather caused by prolonged rainy-season conditions and heavy rain in August affected results, leaving sales below pre-COVID levels.」
The cool conditions caused by the prolonged rainy season and heavy rain in August hindered the recovery in apparel sales, and risks related to seasonal products and fashion cycles affected actual business performance. - FY2021-Q2MaterialisedAnnual report
「The apparel business was particularly affected, including by a sharp decline in demand for ceremony-related products in early spring and for swimsuits and yukata during the summer season.」
Demand for highly seasonal products, including ceremony-related products, swimsuits, and yukata, actually declined significantly due to the fall in demand associated with the spread of infectious disease. - FY2017First statedAnnual report
「We handle many products that are susceptible to fashion trends, and losses arise from the disposal of seasonal products, making this a factor in fluctuations in business performance.」
The company identifies disposal losses on products due to fashion trends and seasonality as a factor in fluctuations in business performance, and rapid changes in fashion cycles as a risk.