Declining Gross Margin in Response to Low-Price Preferences
First written in FY2017-Q1. 12 of 30 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2027-H1.
Star seeds moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 4 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Net sales 2,511,276 15,534,680 Cost of sales 1,246,775 14,026,423 Gross profit 1,264,500 1,508,256」
The gross margin calculated from the reported figures fell sharply from approximately 50.4% in the previous interim period to approximately 9.7%. The decline in gross margin accompanied by a change in the sales mix has progressed further. - FY2026WorsenedAnnual report
「The gross margin was 33.63%.」
The consolidated gross margin fell sharply from 54.03% in the previous consolidated fiscal year to 33.63%. The figures indicate a decline in gross margin accompanied by a change in the sales mix, including new businesses. - FY2026-H1WorsenedAnnual report
「Net sales 2,379,453 2,511,276 Cost of sales 985,946 1,246,775 Gross profit 1,393,507 1,264,500」
While net sales increased, gross profit declined, and the gross margin calculated from the reported figures fell from approximately 58.6% in the previous interim period to approximately 50.4%. - FY2025WorsenedAnnual report
「The gross margin was 54.03%.」
The consolidated gross margin declined from 57.49% in the previous consolidated fiscal year to 54.03%. - FY2025-H1MitigatedAnnual report
「Net sales 2,863,296 2,379,453 Cost of sales 1,205,160 985,946 Gross profit 1,658,136 1,393,507」
The gross margin calculated from the reported figures increased from approximately 57.9% to approximately 58.6%, indicating an improvement in gross margin despite the decline in net sales. - FY2025-Q1Slight decline in gross marginAnnual report
「Net sales 1,501,767 1,262,335 Cost of sales 612,210 517,735 Gross profit 889,556 744,599」
The gross margin calculated from the reported figures declined slightly from approximately 59.2% in the same period of the previous year to approximately 59.0% in the current period. - FY2024MitigatedAnnual report
「The gross margin was 57.49%.」
The consolidated gross margin increased from 55.86% in the previous consolidated fiscal year to 57.49%, indicating an improvement in gross margin. - FY2024-Q3Slight decline in gross marginAnnual report
「Net sales 4,709,344 4,249,278 Cost of sales 1,981,270 1,799,678 Gross profit 2,728,074 2,449,599」
The gross margin calculated from the reported figures declined slightly from approximately 57.9% in the same period of the previous year to approximately 57.6% in the current period. - FY2024-Q1AdvancedAnnual report
「Net sales 1,547,710 1,501,767 Cost of sales 665,713 612,210 Gross profit 881,997 889,556」
While net sales declined year on year, gross profit increased from ¥881.997 million to ¥889.556 million, and the gross margin calculated from the reported figures also rose from approximately 57.0% to approximately 59.2%. - FY2023MitigatedAnnual report
「The gross margin was 56.15%.」
The consolidated gross margin increased from 55.86% in the previous consolidated fiscal year to 56.15%. - FY2023-Q3MitigatedAnnual report
「Net sales 4,709,344 Cost of sales 1,981,270 Gross profit 2,728,074」
The cumulative consolidated gross margin was approximately 57.9% based on the reported figures, up from approximately 55.3% in the same period of the previous year. The consolidated figures indicate an improvement in gross margin. - FY2023-Q1ReframedAnnual report
「Net sales 1,547,710 Cost of sales 665,713 Gross profit 881,997」
Following the adoption of the revenue recognition accounting standard and on a consolidated basis including TITICACA, net sales, cost of sales and gross profit are disclosed, changing the scope of disclosure from the gross margin trend previously based on the non-consolidated figures and the former accounting standard. - FY2022ReframedAnnual report
「Gross margin was 55.86%.」
The full-year disclosure for the first year of consolidation showed a consolidated gross margin of 55.86%. The basis of disclosure has changed from the previously reported standalone gross margin trend of the filing company. - FY2022-Q3RestatedAnnual report
「Revenue 3,085,967 Cost of sales 1,380,007 Gross profit 1,705,960」
On a consolidated basis, revenue of ¥3,085.967 million, cost of sales of ¥1,380.007 million and gross profit of ¥1,705.960 million were disclosed. - FY2022-Q2RestatedAnnual report
「Revenue 1,973,505 Cost of sales 898,501 Gross profit 1,075,004」
Revenue, cost of sales and gross profit continue to be disclosed on a consolidated basis. - FY2022-Q1ReframedAnnual report
「Revenue 975,603 Cost of sales 456,332 Gross profit 519,271」
On a consolidated basis, revenue of ¥975.603 million, cost of sales of ¥456.332 million and gross profit of ¥519.271 million were disclosed. With the preparation of consolidated financial statements beginning, the comparison range has changed from the previous standalone gross margin trend. - FY2021WorsenedAnnual report
「Gross margin was 45.8%, down 0.6 percentage points from the previous fiscal year.」
Gross margin declined 0.6 percentage points from 46.4% in the previous fiscal year to 45.8%, deteriorating again after its improvement from the previous year. - FY2021-Q3WorsenedAnnual report
「Revenue 1,970,679 Cost of sales 1,063,241 Gross profit 907,437」
Gross profit for the cumulative third quarter was ¥907.437 million, down from ¥1,261.728 million in the same period of the previous year. Gross margin was also below the level in the same period of the previous year. - FY2021-Q2WorsenedAnnual report
「Revenue 1,151,478 Cost of sales 626,169 Gross profit 525,309」
Gross profit was ¥525.309 million, and gross margin also declined from revenue of ¥1,854.464 million and gross profit of ¥860.353 million in the same period of the previous year. - FY2021-Q1WorsenedAnnual report
「Revenue 364,097 Cost of sales 210,667 Gross profit 153,430」
Gross profit was ¥153.430 million in the first quarter, and gross margin declined from the level in the first quarter of the previous fiscal year against revenue of ¥364.097 million. - FY2020WorsenedAnnual report
「Gross margin deteriorated 0.5 percentage points from the previous fiscal year to 46.4%.」
Gross margin, which had improved through inventory optimization and other measures, deteriorated by 0.5 percentage points from 46.9% in the previous fiscal year to 46.4%. - FY2019MitigatedAnnual report
「Gross margin improved 1.1 percentage points from the previous fiscal year to 46.9%, due to inventory optimization and other measures.」
Gross margin improved 1.1 percentage points from the previous year to 46.9%, due to inventory optimization and other measures. - FY2018MitigatedAnnual report
「As a result of selling through seasonal products and launching products in a timely and appropriately sized manner, gross margin was 45.8%, up 1.2 percentage points from the previous year.」
Selling through seasonal products and launching products in a timely and appropriately sized manner turned gross margin around from a year-on-year decline, lifting it 1.2 percentage points above the previous year. - FY2018-Q3MitigatedAnnual report
「To facilitate smooth product rotation each season, the company sold through seasonal products and launched products in a timely and appropriately sized manner. As a result, gross margin was 46.4%, up 0.6 percentage points from the previous year.」
Selling through seasonal products and launching products in a timely and appropriately sized manner lifted gross margin 0.6 percentage points above the previous year. Although the increase narrowed from 2.0 percentage points in the previous quarter, the margin remained above the previous year. - FY2018-Q2MitigatedAnnual report
「Gross margin was 47.8%, up 2.0 percentage points from the previous year, due to the thorough implementation of timely, appropriately sized product launches and stronger control over markdown sales.」
Through timely, appropriately sized product launches and stronger control over markdown sales, gross margin rose 2.0 percentage points from the previous year, further improving the prior decline in gross margin. - FY2018-Q1MitigatedAnnual report
「Gross margin was 48.5%, up 1.2 percentage points from the previous year, due to the thorough implementation of timely, appropriately sized product launches and efforts to curb markdown sales.」
Through timely, appropriately sized product launches and curbs on markdown sales, gross margin rose 1.2 percentage points above the previous year to 48.5%, indicating an improvement in the previous downward trend. - FY2017WorsenedAnnual report
「Gross margin was 44.6%, down 4.0 percentage points from the previous year, partly because of measures addressing the continuing preference for low prices and the disposal of inventory associated with store closures.」
In addition to measures addressing the preference for low prices, inventory disposal associated with store closures was identified as a factor, and gross margin was 44.6%, down 4.0 percentage points from the previous year. - FY2017-Q3WorsenedAnnual report
「Gross margin was 45.8%, down 3.4 percentage points from the previous year, due to factors including the disposal of slow-moving products and inventory clearance associated with the closure of unprofitable stores.」
Gross margin was 45.8%, with the year-on-year decline widening from 3.3 percentage points in the previous quarter to 3.4 percentage points. The disposal of slow-moving products and inventory clearance associated with store closures are additionally cited as factors. - FY2017-Q2WorsenedAnnual report
「Gross margin was 45.8%, down 3.3 percentage points from the previous year.」
The year-on-year decline in gross margin widened from 2.1 percentage points in the previous quarter to 3.3 percentage points, bringing the margin to 45.8%. - FY2017-Q1First statedAnnual report
「Gross margin was 47.3%, down 2.1 percentage points from the previous year, due in part to measures addressing consumers' increasingly strong preference for low prices.」
The disclosure links the response to consumers' preference for low prices with the year-on-year decline in gross margin.