Improving Gross Margin

「GMROI（商品投下資本粗利益率） 2.25倍 → 2.63倍 前期比 117%」

「The gross profit margin improved substantially as a result of continued control over procurement and inventory and ongoing measures to improve the cost ratio. In addition, profitability improved as a result of continued efforts to optimize selling, general and administrative expenses, including logistics-related costs.」

「In terms of profit, gross margin exceeded that of the same period of the previous year as a result of continued measures to control procurement and inventory and improve the cost of goods ratio. In addition, profitability improved as the Company worked to optimize SG&A expenses, including logistics-related costs. As a result, net sales were ¥7,384 million, down 2.8% year on year, while operating profit was ¥339 million, up 54.1% year on year.」

「Regarding profit, although the Company was affected by higher costs resulting from the weaker yen and higher raw material prices, it also worked to reduce costs. Operating profit was ¥440 million (¥146 million in the previous consolidated fiscal year), or 300% of the previous year’s level.」

「During the interim consolidated accounting period, inbound demand remained solid, with the number of visitors to Japan well above pre-pandemic levels and the number of Chinese tourists, whose recovery had lagged, also increasing. However, prices continued to rise due to higher raw material and fuel costs associated with the situation in Ukraine, as well as import inflation caused by the weaker yen, and the situation requires continued monitoring.」

「Regarding profit, despite the impact of higher costs resulting from the weaker yen and higher raw material prices and the write-down of deferred tax assets based on a conservative estimate of future taxable income, operating profit was ¥146 million, ordinary profit was ¥11 million, and net loss attributable to owners of the parent was ¥334 million.」

「Regarding profit, despite the impact of the higher cost of goods ratio resulting from the weaker yen and higher crude oil and raw material prices, operating profit was ¥250 million and ordinary profit was ¥104 million. In addition, the Company recorded a net loss attributable to owners of the parent of ¥195 million, partly because it wrote down ¥191 million of deferred tax assets at the end of the third quarter of the current fiscal year in light of its conservative assessment of future performance.」

「Regarding profit, despite the impact of the higher cost of goods ratio resulting from the weaker yen and higher raw material prices, operating profit was ¥34 million (profit of ¥253 million in the same period of the previous year), ordinary loss was ¥93 million (profit of ¥77 million in the same period of the previous year), and net loss attributable to owners of the parent was ¥135 million (profit of ¥547 million in the same period of the previous year).」

「Regarding profit, despite the impact of the higher cost of goods ratio resulting from the weaker yen and higher crude oil and raw material prices, operating loss was ¥182 million (profit of ¥17 million in the same period of the previous year), ordinary loss was ¥194 million (loss of ¥21 million in the same period of the previous year), and net loss attributable to owners of the parent was ¥162 million (profit of ¥25 million in the same period of the previous year).」

「The Company worked to reduce costs, including through warehouse consolidation, cutting costs by approximately ¥400 million from the previous fiscal year. However, operating profit was ¥358 million (¥957 million in the previous fiscal year), also reflecting the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices.」

「Operating profit was ¥421 million, due to the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices, among other factors.」

「Operating profit was ¥253 million (¥475 million in the same period of the previous year), due to the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices, as well as revisions to the accounting treatment for the business combination in which シカタ was the acquired company.」

「Operating profit was ¥17 million (¥150 million in the same period of the previous year), due to the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices, as well as revisions to the accounting treatment for the business combination in which シカタ was the acquired company.」

「Operating profit was ¥1,092 million (¥1,217 million in the previous consolidated fiscal year), due to the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices.」

「Regarding profit, sales of the high-gross-margin in-house product brand “BRUNO” increased to 158% of the previous year’s level, as stated above, while sales through the high-gross-margin e-commerce channel also increased to 203% of the previous year’s level, making a significant contribution to profit. In addition, fixed costs were substantially reduced by thoroughly cutting costs, including promoting telework at the head office at an early stage and reducing the scale of head-office functions.」

「Operating profit was ¥721 million (¥142 million in the same period of the previous year), as sales of the high-gross-margin in-house product brand “BRUNO” increased to 146% of the previous year’s level, sales of e-commerce products with a high operating margin increased to 194% of the previous year’s level, and the promotion of telework among head-office employees also reduced fixed costs.」

「Operating profit was ¥274 million (¥57 million in the same period of the previous year), driven by sales of the high-gross-margin in-house product brand “BRUNO” increasing to 143% of the previous year’s level, sales of e-commerce products with a high operating margin increasing to 191% of the previous year’s level, and lower fixed costs resulting from the aggressive promotion of telework for head-office employees from April, achieving a telework rate of 70%, among other factors.」

「Gross profit margin improved to 41% from 39% in the previous fiscal year, among other factors, resulting in ¥746 million (¥629 million in the previous consolidated fiscal year).」

「Operating profit was ¥217 million, as sales of the Company’s high-margin product brands, including “BRUNO,” increased to 108% of the previous year’s level, while high-margin e-commerce sales increased to 140% of the previous year’s level.」

「③ Strengthening earnings power by reducing the cost of goods ratio and the SG&A ratio」

「Regarding profit, sales of “BRUNO” and “MILESTO” continued to expand from the previous fiscal year, particularly sales of the Company’s own high-margin product brands. In addition, with sales and profit from シカタ added, operating profit was ¥386 million, while ordinary profit was ¥214 million, mainly due to higher shareholder-related expenses.」

「The addition of sales from 株式会社シカタ, which is focused on OEM sales, increased the proportion of OEM product sales, which have a relatively high cost ratio, resulting in a slight increase in the product cost ratio.」

「This fiscal year, sales of the company’s own BRUNO and MILESTO products increased as a result of its strategy to raise awareness of its own product brands. The gross margin reached 45.8%, and operating profit was ¥415 million.」

「In addition to higher sales, the significant improvement in the gross margin to 47.2% (45.4% in the same period of the previous year) resulted in」

「In addition to higher sales, the significant improvement in the gross margin to 47.3% (44.6% in the same period of the previous year) resulted in」

「In addition to higher sales, the significant improvement in the gross margin to 48.2% (44.3% in the same period of the previous year) resulted in record operating profit of ¥91 million (an operating loss of ¥19 million in the same period of the previous year), ordinary profit of ¥76 million (an ordinary loss of ¥19 million) and net profit for the quarter of ¥48 million (a net loss of ¥21 million), all of which were record highs.」

「In the current fiscal year, the company increased advertising expenses from the previous fiscal year under a strategy to raise product awareness. However, the higher proportion of sales from its own products and increased sales in the design business, among other factors, drove a significant improvement in the gross margin to 45.5% (42.8% in the previous fiscal year).」

「The gross margin improved significantly to 45.4% (42.0% in the same period of the previous year) due to the higher proportion of sales from the company’s own products and an increase in design-related fee income, among other factors.」

「The proportion of sales from the company’s own products increased from the same period of the previous year, and the gross margin improved significantly to 44.6% (42.6% in the same period of the previous year).」

「As the proportion of sales from the company’s own products increased from the same period of the previous year, the gross margin improved significantly to 44.3% (42.6% in the same period of the previous year). However, as noted above, higher advertising and sales promotion expenses resulted in an operating loss of ¥19 million (a loss of ¥3 million in the same period of the previous year), an ordinary loss of ¥19 million (a loss of ¥9 million) and a net loss for the quarter of ¥21 million (a loss of ¥12 million).」

「To further improve the gross margin, we will implement measures to increase the sales mix of high-margin products and raise the sales mix of directly operated stores and e-commerce.」