Store Closures, Reduced Consumption and Deteriorating Business Performance Due to COVID-19
First written in FY2021-Q1. 5 of 14 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2025.
Palemo Holdings moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
8 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「The performance of the Group may be affected by abnormal weather, such as record cold summers and warm winters; natural disasters, including major earthquakes, tsunamis, typhoons and floods; and outbreaks of unknown infectious diseases, such as novel influenza and COVID-19.」
The disclosure has been reorganized from a description of the actual impact of store closures and lower consumption caused by COVID-19 to a general epidemic risk that includes abnormal weather, natural disasters and unknown infectious diseases. - FY2024-Q3RestatedAnnual report
「During the first nine months of the fiscal year under review, the reclassification of COVID-19 as a Category 5 disease led to the revival of various events and more opportunities for outings, increasing pent-up demand. As economic activity normalized, performance improved, particularly in apparel.」
The company has continued to explain that the impact on performance from store closures and lower consumption was reduced by the reclassification of COVID-19 as a Category 5 disease, the revival of events and the increase in opportunities for outings, with performance improving particularly in apparel. - FY2024-Q2MitigatedAnnual report
「During the first six months of the fiscal year under review, temperatures were higher than usual in early spring and during the peak summer months of July and August. In addition, the reclassification of COVID-19 as a Category 5 disease increased pent-up demand, particularly for outings. As economic activity normalized, the recovery in customer traffic gained further momentum.」
The recovery in customer traffic gained further momentum as COVID-19 was reclassified as a Category 5 disease and demand for outings recovered. The impact on performance from store closures and lower consumption due to the infectious disease was less severe than through the previous fiscal year. - FY2024-Q1MitigatedAnnual report
「During the first quarter of the fiscal year under review, temperatures remained higher than usual from early spring onward. In addition, the legal classification of COVID-19 was downgraded to Category 5 under the Infectious Diseases Control Law on 8 May, further increasing demand for outings. As economic activity normalized, the recovery in customer traffic gained further momentum.」
The recovery in customer traffic gained further momentum as COVID-19 was reclassified as a Category 5 disease and demand for outings increased. The impact on performance from store closures and lower consumption was further reduced from the previous fiscal year. - FY2023-Q3MitigatedAnnual report
「Sales of summer merchandise were strong due to the extremely hot weather. Although the seventh wave of infections spread again, the decline in customer traffic was limited because, unlike in previous periods, no restrictions were imposed on people's activities. From autumn onward, demand for outings such as commuting and travel increased, and temperatures fell steadily, resulting in solid performance.」
Although the seventh wave of infections spread again, there were no restrictions on people's activities, and the decline in customer traffic was limited. With demand for outings recovering, the impact on performance from store closures and lower consumption due to the infectious disease was less severe than in the previous fiscal year. - FY2023-Q2MitigatedAnnual report
「Although the seventh wave of infections began spreading again from mid-July onward, the summer holidays and the Bon period took place without restrictions on people's activities, unlike in previous periods, and the decline in customer traffic was limited.」
Although the seventh wave of infections spread again, there were no restrictions on people's activities, and the decline in customer traffic was limited. The impact on performance was less severe than the store closures and substantial decline in customer traffic through the previous year. - FY2023-Q1MitigatedAnnual report
「The number of new COVID-19 cases gradually stabilized, and economic activity moved toward normalization, with foot traffic recovering in various regions during Golden Week.」
The disclosure noted that the number of cases had stabilized, foot traffic had recovered, the priority preventive measures were fully lifted, and stores operated during Golden Week without restrictions on people's activities. As a result, the impact of store closures and lower customer traffic due to the infectious disease was less severe than in the previous fiscal year. However, same-store sales remained at approximately 80% of pre-COVID levels, and the disclosure did not state that the impact had been eliminated. - FY2022-Q3Prolonged impact of the infectious disease and continued slowdown in recoveryAnnual report
「In August, prolonged heavy rainfall and a trend toward lower temperatures affected sales, resulting in sluggish sales of summer merchandise and a significant decline in the gross profit margin due to subsequent inventory disposal. Although the state of emergency was lifted from October onward, customer traffic recovered slowly. From November, recovery gradually gained momentum as temperatures fell.」
Customer traffic recovered slowly even after the state of emergency was lifted, and the impact of operating restrictions and lower demand caused by the infectious disease continued into the third quarter. - FY2022-Q2WorsenedAnnual report
「The third state of emergency, which began in late April, affected the Group's stores as shopping centers in major metropolitan areas closed during Golden Week. As many as 35 stores were temporarily closed, while 115 stores operated on reduced hours. The state of emergency was subsequently lifted on 20 June ahead of the Tokyo Olympics, but the rapid spread of infections caused by the Delta variant led to another state of emergency from early July, preventing customer traffic from recovering nationwide.」
The risk of store closures, lower customer traffic and deteriorating performance has continued and intensified due to the reissuance of the state of emergency, closures and reduced hours at commercial facilities, and the renewed spread of infections driven by the Delta variant. - FY2022-Q1WorsenedAnnual report
「Although the state of emergency was fully lifted in late March during the cumulative first quarter of the consolidated fiscal year, signs of a rebound in infections increased as customer traffic recovered. After the application of priority measures to prevent the spread of disease began in April, states of emergency were again declared in prefectures where infections were spreading severely.」
The risk of operating restrictions and declining customer traffic due to the infection continued as states of emergency were reissued and priority measures to prevent the spread of disease were applied. Sales were down approximately 40% from the pre-COVID level, and the company recorded an operating loss of ¥246 million. - FY2021WorsenedAnnual report
「The decline in customer traffic associated with the spread of COVID-19 had a significant impact throughout the year, and the Group's year-on-year same-store sales growth came to 75.0%, representing a substantial decline in revenue.」
The impact of the infection was prolonged, and customer traffic declined during the year's key sales seasons, including the spring/summer and year-end/New Year periods. Deterioration in performance continued on a full-year basis, with year-on-year same-store sales growth of 75.0%, a 24.2% decline in revenue and an operating loss of ¥1.325 billion. - FY2021-Q3WorsenedAnnual report
「During the cumulative third quarter of the consolidated fiscal year, the outlook remained uncertain. Although economic activity temporarily resumed after the state of emergency was lifted amid the prolonged impact of COVID-19, infections repeatedly spread again as people became more active.」
The impact of the infection has been prolonged, and the recovery in customer traffic after stores reopened has repeatedly weakened as infections spread again. The deterioration in performance has also continued, with Group-wide year-on-year same-store sales growth of 73.0% and an operating loss of ¥897 million. - FY2021-Q2WorsenedAnnual report
「Although there have been moves toward a gradual increase in the level of economic activity, concerns about a renewed spread of the infection remain, and the situation continues to be highly uncertain.」
As store closures and lower consumption caused by the infection and the resulting deterioration in performance continue, a renewed spread of the infection has been identified as a new concern, and the timing of containment and the extent of its impact are considered difficult to predict accurately. - FY2021-Q1First statedAnnual report
「During the cumulative first quarter of the consolidated fiscal year, Japan's economy rapidly and substantially deteriorated and remained in an extremely difficult situation as the global spread of COVID-19 led to restrictions on social and economic activity in Japan and overseas.」
The spread of COVID-19 led to calls to refrain from going out and temporary closures of commercial facilities, with approximately 60% of stores closed. Sales during Golden Week were down approximately 80% year on year, and Group-wide year-on-year same-store sales growth came to 45.1%. The Group also recorded a 52.0% decline in revenue, an operating loss of ¥955 million and a quarterly net loss attributable to owners of the parent of ¥1.040 billion, showing the risk materializing as an actual deterioration in performance.