Gross Margin Improvement and Expense Reduction
First written in FY2016. 17 of 35 entries say "Mitigated", first in FY2019-Q2. Latest entry: 2026-09-29.
Honeys Holdings moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2017: 3 of 20 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- 2026-09-29WorsenedEarnings
「販管費率は、売上高が計画を下振れたことで54.4％（前年同期比3.5ポイント増）となりました。」
販管費の絶対額は概ね計画どおりだったが、売上高の下振れにより販管費率が上昇した。 - FY2026WorsenedAnnual report
「Selling, general and administrative expenses increased to ¥28,453 million, up 0.7% year on year, but progress was broadly in line with the plan. The SG&A ratio rose to 50.7%, up 1.7 percentage points, as sales fell short of the plan.」
The absolute amount of SG&A expenses increased, and the SG&A ratio rose to 50.7% as sales fell short of the plan. - FY2025-H1WorsenedAnnual report
「Selling, general and administrative expenses increased to ¥14,053 million, up 5.4% year on year, but the SG&A ratio fell to 47.6%, down 0.8 percentage points, as sales increased.」
Although higher sales reduced the SG&A ratio by 0.8 percentage points to 47.6%, the absolute amount of SG&A expenses increased 5.4% year on year. Combined with the lower gross profit margin, this resulted in an 8.4% decline in operating profit. - FY2024WorsenedAnnual report
「Selling, general and administrative expenses were ¥27,119 million, up 5.3% year on year, and the SG&A ratio was 48.0%, up 1.1 percentage points.」
The SG&A ratio rose to 48.0%, while operating profit declined 9.1% year on year and ordinary profit declined 9.2%. The disclosure cites increases in base salaries, store usage fees, web advertising expenses, e-commerce shipping costs and payment fees. - FY2024-Q3MitigatedAnnual report
「Although selling, general and administrative expenses increased year on year, securing sales and gross profit resulted in higher sales and higher profit.」
While selling, general and administrative expenses increased due to personnel expenses, store usage fees, web advertising expenses and e-commerce shipping costs, sales and gross profit were secured, and operating profit increased 11.1% year on year. - FY2024-Q2MitigatedAnnual report
「Although selling, general and administrative expenses increased year on year, securing sales and gross profit resulted in higher sales and higher profit.」
While selling, general and administrative expenses increased due to personnel expenses, store usage fees, web advertising expenses and e-commerce shipping costs, securing sales and gross profit resulted in higher sales and higher profit, improving earnings. - FY2024-Q1MitigatedAnnual report
「Although selling, general and administrative expenses increased year on year, securing sales and gross profit resulted in higher sales and higher profit.」
Although selling, general and administrative expenses increased, sales and gross profit were secured, and operating profit increased 66.2% year on year. - FY2023MitigatedAnnual report
「Although selling, general and administrative expenses increased from the previous fiscal year, securing sales and gross profit resulted in higher sales and higher profit.」
Although selling, general and administrative expenses increased, securing sales and gross profit resulted in operating profit of ¥7,670 million, up 53.6% year on year, improving earnings. - FY2023-Q2MitigatedAnnual report
「Selling, general and administrative expenses were ¥12,450 million, up 6.9% year on year, and the SG&A ratio was 47.8%, down 3.2 percentage points.」
Although personnel expenses, store expenses, e-commerce shipping expenses and payment fees increased, the SG&A ratio fell 3.2 percentage points year on year due to higher sales, resulting in higher sales and higher profit. - FY2023-Q1MitigatedAnnual report
「Securing sales and gross profit resulted in higher sales and higher profit.」
Although selling, general and administrative expenses increased year on year, sales and gross profit were secured, resulting in higher sales and higher profit and improving earnings. - FY2022-Q3MitigatedAnnual report
「As a result, securing sales and gross profit led to higher profit, although selling, general and administrative expenses increased slightly from the previous fiscal year.」
While selling, general and administrative expenses increased 1.0% year on year and the SG&A ratio rose to 53.7%, operating profit increased 11.1% year on year due in part to securing gross profit, improving earnings. - FY2022-Q2WorsenedAnnual report
「Selling, general and administrative expenses were ¥11,649 million, up 0.7% year on year, and the SG&A ratio was 51.0%, up 2.0 percentage points. Personnel expenses were at the same level as in the same period of the previous year, but shipping costs and fees associated with growth in the e-commerce business increased. Profit declined as sales fell, but performance was broadly in line with the plan.」
Higher shipping costs and fees accompanying growth in the e-commerce business pushed the SG&A ratio up to 51.0%, and profit declined due to lower sales. - FY2022-Q1WorsenedAnnual report
「Selling, general and administrative expenses were ¥5,699 million, up 1.6% year on year, and the SG&A ratio was 54.2%, up 3.3 percentage points. Although the company continued efforts to reduce expenses, including negotiating rent reductions and switching store lighting to LEDs, profit declined as sales fell.」
While cost-cutting measures, including rent-reduction negotiations and the switch to LED lighting, continued, the SG&A ratio rose to 54.2%, and operating profit declined 35.6% year on year as sales fell. - FY2021MitigatedAnnual report
「As a result, both operating profit and ordinary profit increased.」
Operating profit increased 56.5% year on year due to maintaining a gross profit margin of 59.1%, reducing procurement costs and cutting selling, general and administrative expenses. - FY2021-Q3MitigatedAnnual report
「In terms of earnings, efforts to reduce procurement costs through the shift to ASEAN production and other measures kept the gross profit margin high at 58.1%, up 0.6 percentage points year on year. Although efforts were also made to reduce selling, general and administrative expenses, profit declined as the number of store visitors fell due to the spread of COVID-19.」
Procurement costs were reduced through the shift to ASEAN production, and selling, general and administrative expenses were cut, resulting in a gross profit margin of 58.1%. However, operating profit declined 26.1% year on year due to fewer store visitors. - FY2021-Q2MitigatedAnnual report
「In terms of earnings, strong sales during the regular-price sales periods in June and October, among other factors, resulted in a gross profit margin of 59.0%, up 0.4 percentage points year on year. As a result of efforts to grow the highly profitable e-commerce business and reduce selling, general and administrative expenses, operating profit was maintained at approximately the same level as in the same period of the previous year.」
The gross profit margin improved by 0.4 percentage points to 59.0%, and operating profit was maintained at approximately the same level as in the same period of the previous year despite lower sales, due to growth in the e-commerce business and reductions in selling, general and administrative expenses. - FY2021-Q1MitigatedAnnual report
「In terms of earnings, although sales declined, the gross profit margin remained high at 57.4%, roughly unchanged from the same period of the previous year. As a result of reducing selling, general and administrative expenses, profit was maintained at approximately the previous year's level.」
Despite lower sales, profit was maintained at approximately the previous year's level by keeping the gross profit margin at 57.4% and reducing selling, general and administrative expenses. - FY2020MitigatedAnnual report
「Measures such as increasing the ASEAN production ratio and curbing markdown sales proved effective, expanding the gross profit margin by 0.6 percentage points from the previous consolidated fiscal year to 58.3%.」
The gross profit margin improved by 0.6 percentage points to 58.3% due to the higher ASEAN production ratio and curbs on markdown sales. - FY2020-Q3MitigatedAnnual report
「In terms of earnings, domestic sales remained solid, while fewer discounted sales and a higher gross profit margin, among other factors, resulted in operating profit of ¥2,083 million, up 4.5% year on year. Consolidated profit also increased year on year, mainly because selling, general and administrative expenses declined at the Chinese subsidiary whose operations were discontinued.」
Earnings have continued to improve due to fewer discounted sales and a higher gross profit margin in Japan, as well as lower selling, general and administrative expenses following the closure of the Chinese subsidiary's operations. - FY2020-Q2MitigatedAnnual report
「In terms of earnings, domestic sales remained solid, while fewer discounted sales and a higher gross profit margin, among other factors, resulted in operating profit of ¥2,421 million, up 23.1% year on year. Consolidated profit also increased year on year, mainly because selling, general and administrative expenses declined at the Chinese subsidiary whose operations were discontinued.」
Earnings improved due to fewer discounted sales in Japan, a higher gross profit margin, and lower selling, general and administrative expenses following the closure of the Chinese subsidiary's operations. - FY2020-Q1MitigatedAnnual report
「In terms of earnings, domestic sales remained steady, while a reduction in markdown sales improved the gross margin, resulting in higher profit. Consolidated profit also increased year on year due in part to lower expenses at the Chinese subsidiary, which had ceased operations.」
Consolidated earnings improved due to fewer discounted sales in Japan, a higher gross profit margin, and lower expenses following the closure of the Chinese subsidiary's operations. - FY2019-Q3MitigatedAnnual report
「In terms of earnings, domestic sales remained steady, and customer numbers continued to increase during the challenging sale season, following the second quarter, resulting in a significant increase in profit.」
The reduction in China's loss and the increase in domestic customer numbers improved earnings, with operating income rising 450.1% year on year to ¥1.519 billion. - FY2019-Q2MitigatedAnnual report
「In terms of earnings, the reduction in China's loss, steady domestic sales and reductions in selling, general and administrative expenses resulted in higher profit.」
Operating income increased 36.1% year on year due to reductions in selling, general and administrative expenses and a smaller loss in China. - FY2019-Q1WorsenedAnnual report
「In terms of earnings, sales declined in both Japan and China, and the gross margin fell due to markdown sales associated with inventory clearance, resulting in lower revenue.」
In addition to lower sales in Japan and China, markdown sales associated with inventory clearance reduced the gross margin. Operating income also declined 51.9% year on year. - FY2018WorsenedAnnual report
「Gross profit was ¥29.947 billion, down 4.5% from the previous consolidated fiscal year. In Japan, the gross margin improved due in part to the shift to ASEAN, but in China it declined because, in addition to lower sales, the company recorded valuation losses on slow-moving inventory and conducted markdown sales, resulting in lower gross profit overall.」
Although the domestic gross margin improved, consolidated gross profit declined 4.5% due to lower sales in China, valuation losses on slow-moving inventory and markdown sales. - FY2018-Q3WorsenedAnnual report
「As a result, for the cumulative third quarter of the fiscal year, sales were ¥37.537 billion, down 3.9% year on year, operating income was ¥276 million, down 49.8%, ordinary income was ¥440 million, up 97.6%, and net loss attributable to owners of the parent was ¥223 million, compared with a net loss attributable to owners of the parent of ¥443 million in the same period of the previous year.」
Ordinary income improved, while sales and operating income declined, with operating income down 49.8% year on year. - FY2018-Q2WorsenedAnnual report
「As a result, for the cumulative second quarter of the fiscal year, sales were ¥26.641 billion, down 1.2% year on year, and operating income was ¥1.185 billion, down 18.4%.」
Consolidated sales declined 1.2% year on year and operating income declined 18.4%, with the decline in operating income widening from the previous quarter. - FY2018-Q1WorsenedAnnual report
「As a result, for the cumulative first quarter of the fiscal year, sales were ¥13.138 billion, down 0.6% year on year, operating income was ¥398 million, down 5.3%, ordinary income was ¥454 million, compared with an ordinary loss of ¥73 million in the same period of the previous year, and net income attributable to owners of the parent was ¥116 million, compared with a net loss attributable to owners of the parent of ¥219 million in the same period of the previous year.」
Sales and operating income were below the same period of the previous year, and operating income continued to decline. Meanwhile, ordinary income and net income attributable to owners of the parent turned profitable. - FY2017WorsenedAnnual report
「Although the domestic gross margin improved due in part to the shift to ASEAN, the decline in China's gross margin resulted in an overall decrease.」
The domestic gross margin improved, while China's gross margin declined. Selling, general and administrative expenses also increased due to the introduction of new fixtures and higher personnel expenses in Japan, resulting in a 17.2% year-on-year decline in consolidated operating income. - FY2017-Q3WorsenedAnnual report
「Sales in Japan were ¥32.393 billion, down 0.1% year on year, and operating income was ¥808 million, down 31.2%. Consumer sentiment remained weak, and sales were slightly below the previous year. In addition, the introduction of new fixtures increased selling, general and administrative expenses, resulting in lower profit.」
In Japan, the introduction of new fixtures increased selling, general and administrative expenses, resulting in a 31.2% year-on-year decline in operating income. The disclosure describes lower profit due to higher expenses amid efforts to reduce costs and improve profitability. - FY2017-Q2AdvancedAnnual report
「Sales exceeded the previous year as the number of customers increased following a review of product pricing. In addition, the shift to ASEAN and other measures helped maintain a high gross margin, resulting in higher sales and operating income.」
The Japan segment recorded sales of ¥22.481 billion, up 1.2% year on year, and operating income of ¥1.622 billion, up 2.3%, with the company reporting a sustained high gross margin and higher sales and operating income. - FY2017-Q1AdvancedAnnual report
「In addition, the shift to ASEAN and other measures proved effective in maintaining a relatively high gross profit margin, while reductions in selling, general and administrative expenses resulted in higher profit.」
In the Japan segment, operating income increased 46.5% year on year due to the maintenance of a high gross margin and reductions in selling, general and administrative expenses. - FY2016First statedAnnual report
「Operating income was ¥2.821 billion, up 30.2% year on year, due to an improved domestic gross margin in addition to lower selling, general and administrative expenses.」
The company explained that the domestic gross margin improved due in part to shifting production to ASEAN, while selling, general and administrative expenses also declined.