Weather-related fluctuations in business performance due to warm winters and snowfall

「During the current interim accounting period, there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」

「The decline in sales was primarily due to store closures associated with relocations, and delays in the sales timing of studless tires, the core seasonal product of the Yellow Hat business, and summer tires in early spring as a result of the warm winter and repeated snowfall in March 2024, as well as weak sales in the TSUTAYA business due to changes in consumer behavior.」

「The decline in sales was primarily due to weak personal consumption of winter products, including studless tires, the core seasonal product of the Yellow Hat business, as a result of the warm winter, as well as weak sales in the TSUTAYA business due to changes in consumer behavior.」

「In the core Yellow Hat business, demand for summer tires shifted from March 2022 to April 2022 and thereafter due in part to weather factors, including snowfall, and the earthquake on 16 March 2022. As a result, cumulative first-quarter sales remained strong.」

「There were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year during the cumulative third quarter period.」

「Sales volumes of these seasonal products fluctuate depending on weather conditions, including whether the winter is warm or severe, whether snowfall occurs, and whether there is an appropriate amount of snow cover. Although it is difficult to predict future weather, the company believes that warm winters caused by global warming will become more frequent.」

「The decline in earnings was primarily due to higher costs associated with newly opened stores, the warm winter in the fourth quarter, and the spread of COVID-19, which slowed customer traffic and weakened demand for high-gross-margin products, including winter products, car maintenance services, and hobby and lifestyle products.」

「The core Yellow Hat business has made building a stable earnings structure unaffected by climate change its top priority, at a time when seasonal transitions are becoming less distinct, including due to natural disasters caused by extreme weather.」

「The core Yellow Hat business has made building a stable earnings structure unaffected by climate change its top priority, at a time when seasonal transitions are becoming less distinct, including due to natural disasters caused by extreme weather.」

「The core Yellow Hat business has made building a stable earnings structure unaffected by climate change its top priority, at a time when seasonal transitions are becoming less distinct, including due to natural disasters caused by extreme weather.」

「Although the 45th fiscal year was warm, snowfall forecasts in December 2018 increased demand for these products, mainly in the Tohoku region. However, the company believes that warm winters caused by global warming will continue to occur.」

「In our store areas as well, amid sluggish personal consumption, the core Yellow Hat business has made building a stable earnings structure unaffected by climate change its top priority, at a time when seasonal transitions are becoming less distinct, including due to natural disasters caused by extreme weather.」

「In our store areas as well, amid sluggish personal consumption, the core Yellow Hat business has made building a stable earnings structure unaffected by climate change its top priority, at a time when seasonal transitions are becoming less distinct, including due to natural disasters caused by extreme weather.」

「In our store areas as well, amid sluggish personal consumption, the core Yellow Hat business has made building a stable earnings structure unaffected by climate change its top priority, at a time when seasonal transitions are becoming less distinct, including due to natural disasters caused by extreme weather.」

「Earnings grew steadily due to increased demand for winter products caused by the severe winter from the third quarter onward, and sales and operating profit remained above the previous fiscal year.」

「In our store areas as well, amid sluggish personal consumption, the core Yellow Hat business has made building a stable earnings structure unaffected by climate conditions its top priority in response to the weakness in seasonal products caused by warm winters through the previous fiscal year. Sales remained strong, partly because demand for summer tires was concentrated after the end of the period and demand for winter products increased due to the severe winter.」

「In our store areas as well, amid sluggish personal consumption, sales of high-gross-margin winter products, an area of strength for the company, declined in the core Yellow Hat business due in part to 2 consecutive warm winters. Building a stable earnings structure unaffected by climate conditions has therefore become the top priority.」

「In our store areas as well, amid sluggish personal consumption, sales of high-gross-margin winter products, an area of strength for the company, have remained weak in the core Yellow Hat business due to 2 consecutive warm winters. Building a stable earnings structure unaffected by climate conditions has therefore become the top priority.」

「In our store areas as well, amid prolonged weakness in personal consumption, adverse weather conditions, including a warm winter similar to last year and exceptionally little snowfall, had a significant impact, and difficult conditions have continued, particularly in our core Yellow Hat business.」

「In addition, demand for winter products increased mainly in northern Kanto in November due to the onset of a La Niña event. However, sales remained at the same level as the previous year in December due to the impact of the warm winter.」

「In our store areas as well, demand for winter products increased mainly in northern Kanto in November due to the prolonged trend toward consumer frugality and the onset of a La Niña event. However, sales remained at the same level as the previous year in December due to the impact of the warm winter.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the three-month period ended June 30, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」

「In addition to continued consumer frugality, the impact of the warm winter caused demand for studless tires, a core seasonal product, to stagnate, and sales remained sluggish.」