Short-term earnings deterioration resulting from investment to raise brand awareness
First written in FY2017-Q1. 1 of 19 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2021: 5 of 16 companies on the "Worse" side.
3 other companies' latest entry also says "Other".
- FY2026Operating profit recovery despite lower advertising expensesAnnual report
「Advertising and promotional expenses 767 608」
Advertising and promotional expenses decreased from ¥767 million to ¥608 million, while operating profit increased from ¥440 million to ¥567 million. - FY2025Operating profit recovery despite higher advertising and promotion expensesAnnual report
「Advertising and promotional expenses 717 767」
Advertising and promotional expenses increased from ¥717 million to ¥767 million, while operating profit recovered from ¥146 million to ¥440 million. - FY2022Operating profit declined as advertising and promotional expenses increasedAnnual report
「Advertising expenses」
Advertising and promotional expenses increased from ¥446 million in the previous year to ¥876 million, while operating profit decreased from ¥1,217 million to ¥1,092 million. - FY2022-Q2Operating profit declined amid advertising investmentAnnual report
「Although the Company implemented fixed-cost reductions, including establishing a work-from-home arrangement at headquarters and thorough cost-cutting at directly operated stores, operating profit was ¥475 million, compared with ¥721 million in the same period of the previous year, as it conducted strategic advertising and promotional activities, including television commercials, to raise awareness of the “BRUNO” brand.」
While implementing fixed-cost reductions, the Company invested in advertising, including television commercials, to raise awareness of BRUNO, and operating profit fell below the same period of the previous year. - FY2022-Q1Operating profit declined amid first-quarter advertising investmentAnnual report
「Operating profit was ¥150 million, compared with ¥274 million in the same period of the previous year, due to strategic advertising and promotional spending aimed at raising awareness of the “BRUNO” brand. Ordinary profit was ¥134 million, compared with ¥247 million, partly because the weaker yen resulted in a foreign exchange loss.」
While investing in advertising to raise awareness of BRUNO and reducing expenses through operational reforms, operating profit and ordinary profit fell below the same period of the previous year. - FY2021-Q3Three profit measures hit record highs in the third quarterAnnual report
「Operating profit, ordinary profit and profit attributable to owners of the parent all reached record highs for the nine months ended the third quarter.」
For the nine months ended the third quarter, operating profit was ¥857 million, ordinary profit was ¥651 million and profit attributable to owners of the parent was ¥348 million, with all three profit measures reaching record highs. - FY2021-Q2Record highs for all 3 profit measures in the second quarterAnnual report
「Operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all reached record highs for the cumulative second quarter.」
Under the business operations that included advertising, sales promotion and initiatives to improve brand awareness, operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all reached record highs for the cumulative second quarter. - FY2020Full-year growth in operating profit, ordinary profit and net profitAnnual report
「Due to the expansion of sales of high-margin proprietary product brands, including BRUNO, to 114% of the previous fiscal year's level, and the substantial expansion of the company's e-commerce sales to 160% of the previous fiscal year's level, among other factors, gross margin improved to 41% from 39% in the previous fiscal year. As a result, operating profit was ¥746 million, compared with ¥629 million in the previous consolidated fiscal year.」
Operating profit increased from ¥629 million to ¥746 million due to the expansion of high-margin brands such as BRUNO and e-commerce, resulting in full-year profit growth after the declining profit and loss-making trend through the previous quarter. - FY2020-Q2Lower operating profit and ordinary loss due to advertising promotion and stockoutsAnnual report
「Regarding profit, the company actively conducted advertising and sales promotion, including television commercials, to expand sales, while also substantially reducing inventory to improve cash flow. This resulted in lost sales opportunities, including stockouts of popular products, and operating profit declined year on year to ¥142 million. In addition, higher expenses related to shareholder benefits resulted in an ordinary loss of ¥34 million and a quarterly net loss attributable to owners of the parent of ¥108 million.」
While advancing advertising and sales promotion, including television commercials, and reducing inventory, the company incurred lost sales opportunities due to stockouts of popular products, and operating profit fell below the same period of the previous year. Higher shareholder benefit-related expenses resulted in an ordinary loss and a quarterly net loss attributable to owners of the parent. - FY2020-Q1Higher operating profit from brand and subsidiary contributions, lower net profitAnnual report
「Regarding profit, operating profit was ¥57 million due to expanded sales of BRUNO, as described above, and the addition of profit from 株式会社シカタ. Ordinary profit was ¥43 million, and quarterly net profit attributable to owners of the parent was ¥8 million.」
For the quarter, the company attributed operating profit to expanded BRUNO sales and シカタ's profit contribution, rather than to advertising investment. Operating profit and ordinary profit exceeded the same period of the previous year, while quarterly net profit attributable to owners of the parent was lower than in the same period of the previous year. - FY2019Higher operating profit, lower net profitAnnual report
「Operating profit was ¥629 million, compared with ¥415 million in the previous consolidated fiscal year, due to expanded sales of the high-margin proprietary product brands and the addition of profit from 株式会社シカタ. Net profit attributable to owners of the parent was ¥168 million, compared with ¥296 million in the previous consolidated fiscal year, due to impairment losses recognized in connection with the closure of certain stores and the aging Saitama cosmetics factory.」
Operating profit increased due to contributions from the proprietary brands and シカタ, while net profit attributable to owners of the parent declined due to impairment losses on stores and the factory. - FY2019-Q1Higher cost ratio due to an increased OEM sales mixAnnual report
「Regarding profit, the company continued its strategy of increasing advertising and sales promotion expenses to raise awareness of its proprietary product brands. As a result, sales of its proprietary BRUNO and MILESTO products increased substantially. However, the addition of sales from 株式会社シカタ, which is primarily engaged in OEM sales, increased the proportion of OEM product sales, which have a relatively high cost ratio, and the product cost ratio rose slightly. Operating profit was ¥38 million, also reflecting higher advertising and sales promotion expenses under the strategy of raising awareness of the proprietary product brands.」
The company explained that, while advertising and sales promotion investment increased sales of proprietary products, the higher OEM sales mix at シカタ and the associated investment burden affected the product cost ratio and operating profit. - FY2018-Q3Retail revenue and profit growth amid stronger advertising and sales promotionAnnual report
「As e-commerce sales, where sales promotion was being strengthened through advertising, significantly exceeded the same period of the previous year, revenue was ¥2,618 million, compared with ¥1,841 million in the same period of the previous year, and operating profit was ¥82 million, compared with ¥33 million.」
While continuing to strengthen sales through advertising, the retail business recorded higher revenue, and operating profit increased from ¥33 million in the same period of the previous year to ¥82 million. - FY2018-Q2Retail revenue and profit growth despite continued advertising investmentAnnual report
「In the lifestyle retail business for home-related products, the company opened 3 new stores, including a hybrid-format store in Ueno carrying multiple brands in November, and sales from e-commerce, where sales promotion was being strengthened through advertising, significantly exceeded the same period of the previous year. As a result, revenue was ¥1,734 million, compared with ¥1,228 million in the same period of the previous year, and operating profit was ¥78 million, compared with ¥43 million.」
While continuing to strengthen sales through advertising, the retail business recorded higher revenue, and operating profit also exceeded the same period of the previous year. - FY2018-Q1Higher retail operating profit amid stronger advertising and sales promotionAnnual report
「As e-commerce sales, which the company has been strengthening through advertising, significantly exceeded those in the same period of the previous year, net sales were ¥751 million, compared with ¥572 million in the same period of the previous year, and operating profit was ¥15 million, compared with ¥14 million.」
While continuing to strengthen sales through advertising, the company explained that operating profit from the retail business, including e-commerce, exceeded the same period of the previous year. - FY2017AdvancedAnnual report
「During the fiscal year, the company increased advertising expenses from the previous fiscal year based on a strategy to improve product awareness. However, as the ratio of sales from proprietary products increased year on year and design business sales rose, among other factors, gross margin improved significantly to 45.5% from 42.8% in the previous fiscal year. As a result, operating profit was ¥401 million, compared with ¥182 million in the previous fiscal year, ordinary profit was ¥334 million, compared with ¥148 million, and net profit was ¥295 million, compared with ¥223 million, all record highs.」
Despite increased advertising expenses, operating profit, ordinary profit and net profit all reached record highs due to improvements in the ratio of sales from proprietary products, gross margin and design business sales. - FY2017-Q3RestatedAnnual report
「This fiscal year, the company has increased advertising expenses from the previous fiscal year based on a strategy to improve product awareness. However, as the ratio of sales from proprietary products increased year on year and design-related fee income rose, among other factors, profit margin improved significantly to 45.4% from 42.0% in the same period of the previous year. As a result, operating profit was ¥163 million, compared with ¥52 million in the same period of the previous year, ordinary profit was ¥104 million, compared with ¥10 million, and quarterly net profit was ¥64 million, compared with ¥6 million.」
The company explained that, despite increased advertising expenses, operating profit, ordinary profit and quarterly net profit exceeded the same period of the previous year due to improvements in the ratio of sales from proprietary products and profit margin, as well as higher design-related fee income. - FY2017-Q2Profit growth despite continued advertising investmentAnnual report
「This fiscal year, the company has invested substantially more in advertising than in the previous fiscal year based on a strategy to increase product awareness. However, the ratio of sales from proprietary products increased year on year, and gross margin improved significantly to 44.6% from 42.6% in the same period of the previous year. As a result, operating profit was ¥88 million, compared with ¥57 million in the same period of the previous year, ordinary profit was ¥44 million, compared with ¥28 million, and quarterly net profit was ¥34 million, compared with ¥26 million.」
Despite substantially increased advertising expenses, operating profit, ordinary profit and quarterly net profit all exceeded the same period of the previous year due to improvements in the ratio of sales from proprietary products and gross margin. The explanation has shifted from an expansion of losses associated with the previous advertising investment to profit growth for the cumulative period under review. - FY2017-Q1First statedAnnual report
「This fiscal year, we invested substantially more in advertising and promotional expenses than in the previous fiscal year under our strategy of raising brand awareness. As a result, the ordinary loss was ¥19 million, a decline of ¥9 million, and the quarterly net loss was ¥21 million, a decline of ¥8 million.」
The company itself explained that increased advertising expenses aimed at improving brand awareness contributed to the expansion of the operating loss and ordinary loss for the quarter.