Reliance on Overseas Suppliers, Foreign Exchange and Conditions in Major Producing Countries
First written in FY2016. 9 of 19 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2026.
Honeys Holdings moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 4 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「To reduce procurement costs, the Group outsources production of its private-label products to its manufacturing subsidiary's factory in Myanmar, as well as to garment manufacturers and other suppliers in Myanmar, Bangladesh, Cambodia, Vietnam, China and elsewhere, and imports products from overseas.」
The Group continues to identify overseas procurement, exchange-rate movements, geopolitical risks and procurement disruptions caused by infectious diseases as risks. It also continues to enter into forward exchange contracts covering a certain percentage of procurement and analyse conditions in supplier countries. - FY2024WorsenedAnnual report
「To reduce procurement costs, the Group outsources production of its private-label products to its manufacturing subsidiary's factory in Myanmar, as well as to garment manufacturers and other suppliers in Myanmar, Bangladesh, Cambodia, Vietnam, China and elsewhere, and imports products from overseas.」
While continuing to diversify overseas procurement, higher procurement costs resulting from rising raw material prices and continued yen weakness became an actual factor weighing on performance. - FY2024-Q3RestatedAnnual report
「In the women's apparel specialty-store industry, procurement costs continued to rise due to higher raw material prices, the ongoing trend toward yen depreciation and other factors, while weather conditions also contributed to a continued challenging operating environment.」
Higher raw material prices related to overseas procurement and higher procurement costs resulting from yen depreciation continue to be identified as risks in the operating environment. - FY2024-Q1RestatedAnnual report
「The women's specialty apparel retail industry continued to face a challenging operating environment because of higher procurement costs resulting from rising raw material prices and foreign exchange movements.」
Higher raw material prices related to overseas procurement and higher procurement costs resulting from yen depreciation and exchange-rate movements continue to be identified as risks in the operating environment. - FY2023RestatedAnnual report
「Procurement terms for overseas purchases are determined for each order, but significant exchange-rate movements could affect the Group's performance. In addition, regional conditions in the countries where suppliers are located, including geopolitical risks and the impact of COVID-19, could disrupt the Group's procurement activities.」
The Group continues to identify dependence on overseas procurement, exchange-rate movements, geopolitical risks and procurement disruptions caused by infectious diseases as its key risks. - FY2023-Q2RestatedAnnual report
「Procurement costs trended higher due in part to rising raw material prices and continued yen depreciation, resulting in a continued challenging operating environment.」
Higher raw material prices related to overseas procurement and higher procurement costs resulting from yen depreciation are described as the actual operating environment, following the previous quarter. - FY2023-Q1WorsenedAnnual report
「Procurement costs trended higher due in part to rising resource prices, including raw materials, and exchange-rate factors such as the yen's depreciation, resulting in a continued challenging operating environment.」
Higher resource prices related to overseas procurement and higher procurement costs resulting from yen depreciation are explicitly identified as the actual operating environment, indicating that the existing risks associated with overseas procurement have materialized. - FY2022MitigatedAnnual report
「The Group hedges risk by entering into forward exchange contracts covering a certain percentage of its procurement amount. It also continuously analyses regional conditions in the countries where its suppliers are located and will take timely and appropriate action.」
For the risks associated with overseas procurement, exchange rates, geopolitical conditions and COVID-19, the Group explicitly identifies forward exchange contracts and ongoing analysis of conditions in supplier countries as countermeasures. - FY2022-Q3WorsenedAnnual report
「The women's specialty apparel retail industry was also affected by activity restrictions, including requests to refrain from going out, in response to the infection situation, while procurement costs rose for raw materials and ocean freight, resulting in a continued challenging operating environment.」
Higher procurement costs for raw materials, ocean freight and other items related to overseas procurement are explicitly identified as part of the challenging operating environment during the current period. - FY2022-Q2MaterialisedAnnual report
「Some stores have been temporarily closed and some factories have suspended operations in response to requests from the governments of various countries and other authorities to prevent the spread of COVID-19.」
Factory shutdowns have actually occurred in response to requests from governments and other authorities for infectious-disease measures, bringing the impact on overseas production and procurement activities to the fore. - FY2021WorsenedAnnual report
「In the Republic of the Union of Myanmar, where the Group's manufacturing subsidiary, Honeys Garment Industry Limited, is located, the Myanmar military declared a state of emergency on 1 February 2021. The operations of the Group's manufacturing subsidiary have not been affected as of the current date, but some production delays and other issues could occur in the future. The Group will continue to closely monitor developments in the country.」
Regarding Myanmar's declaration of a state of emergency, the Group states that there is currently no impact on operations while explicitly noting the possibility of future production delays. - FY2021-Q3WorsenedAnnual report
「In the Republic of the Union of Myanmar, where the Group's manufacturing subsidiary, Honeys Garment Industry Limited, is located, the Myanmar military declared a state of emergency on 1 February 2021. The operations of the Group's manufacturing subsidiary have not been affected as of the current date, but depending on future developments, the Group's financial position and operating results could be affected.」
For Myanmar, a major production country, the Group explicitly identifies the declaration of a state of emergency as a new political and regional risk. It states, however, that there is currently no impact on the operations of the manufacturing subsidiary. - FY2020WorsenedAnnual report
「Procurement terms for overseas purchases are determined for each order, but significant exchange-rate movements could affect the Group's performance. In addition, regional conditions in the countries where suppliers are located, including geopolitical risks and the impact of COVID-19, could disrupt the Group's procurement activities.」
In addition to the existing exchange-rate and regional-condition risks associated with dependence on overseas procurement, the Group has explicitly identified geopolitical risk and procurement disruptions caused by COVID-19. - FY2020-Q3WorsenedAnnual report
「The Group imports products from overseas, including private-label products whose production is outsourced to garment manufacturers in Bangladesh, China, Vietnam and elsewhere, as well as to its own factory in Myanmar. If infections spread further in these countries, the Group's procurement activities could be disrupted.」
A new, specific exposure has emerged in connection with dependence on overseas procurement: disruption to procurement activities resulting from the spread of infections in the respective countries. - FY2018RestatedAnnual report
「To reduce procurement costs, the Group outsources production of its private-label products to garment manufacturers in China, Bangladesh, Vietnam and elsewhere, as well as to its own factory in Myanmar, and imports a large number of products from overseas. Procurement terms for overseas purchases are determined for each order, but significant exchange-rate movements could affect the Group's performance. In addition, regional conditions in the major countries where suppliers are located could disrupt the Group's procurement activities.」
While relying on overseas procurement as a basis for reducing costs, the Group continues to identify exchange-rate movements and conditions in major production countries as risks. - FY2017RestatedAnnual report
「To reduce procurement costs, the Group outsources production of its private-label products to garment manufacturers in China, Bangladesh, Vietnam and elsewhere, as well as to its own factory in Myanmar, and imports a large number of products from overseas. Procurement terms for overseas purchases are determined for each order, but significant exchange-rate movements could affect the Group's performance. In addition, regional conditions in the major countries where suppliers are located could disrupt the Group's procurement activities.」
While relying on overseas procurement as a basis for reducing costs, the Group continues to identify exchange-rate movements and conditions in major production countries as risks. - FY2016First statedAnnual report
「To reduce procurement costs, the Group outsources production of its private-label products to garment manufacturers in China, Bangladesh, Vietnam and elsewhere, as well as to its own factory in Myanmar, and imports a large number of products from overseas. Procurement terms for overseas purchases are determined for each order, but significant exchange-rate movements could affect the Group's performance. In addition, regional conditions in the major countries where suppliers are located could disrupt the Group's procurement activities.」
While relying on overseas procurement as a basis for managing costs, the Group identifies exchange-rate movements and regional conditions in major sourcing countries as risks.