Consumer Thrift and Weak Demand Following the Postponement of a Tax Increase

「Japan's economic environment during the fiscal year showed signs of recovery against a backdrop of improving employment and income conditions and the effects of various policies, with the economy following a gradual recovery trend. However, the outlook remained uncertain due to concerns about the impact on corporate earnings and personal consumption of rising raw material and energy prices accompanying yen depreciation, continued price increases, U.S. trade policy, financial market developments and the situation in the Middle East.」

「継続する物価高に伴い今後も消費者の節約志向は続くと考えられ」

「In addition, concerns remain about the impact on personal consumption through such factors as weaker consumer sentiment resulting from continued price increases. Developments in U.S. trade policy and volatility in financial and capital markets also pose risks of putting downward pressure on the economy, and the outlook remains uncertain.」

「Although the Company has seen a recovery in customer traffic, costs such as procurement prices and personnel expenses have remained high, while stagnation in consumer sentiment caused by prolonged high prices is also a concern, and conditions remain challenging.」

「During the third quarter, Japan's economic environment was on a gradual recovery trend as economic activity normalized from the COVID-19 pandemic, but the outlook remained uncertain due to heightened global tensions, soaring resource and raw material prices, and the prolonged trend of yen depreciation.」

「During the second quarter, Japan's economic environment was expected to continue its gradual recovery as economic activity continued to normalize from the COVID-19 pandemic. However, the outlook remained uncertain due to concerns about the effects of higher prices, supply-side constraints and exchange-rate fluctuations. The Company also continued to face challenging conditions, as expenses such as procurement prices, water, utility and supplies costs continued to rise, while continued price increases were expected to restrain consumption going forward.」

「The Company also saw a recovery in personal consumption, but expenses have continued to increase, including due to higher procurement prices, water, utility and supplies costs, leaving conditions challenging.」

「The Company also saw signs of a recovery driven by the return of customer traffic. However, expenses have continued to increase due to weaker consumer sentiment caused by higher prices, rising personnel expenses accompanying annual increases in the minimum wage, and higher water, utility and supplies costs, leaving conditions challenging.」

「Although customer traffic recovered across all businesses from October of that year, sales per customer remained weak, resulting in continued challenging conditions.」

「During the second quarter, Japan's economic environment became extremely challenging as domestic and overseas economies were significantly affected by the spread of COVID-19, and economic conditions and the outlook remained very challenging. In Miyagi Prefecture, states of emergency and priority preventive measures were issued in April, August and September 2021, along with independent states of emergency declared by Miyagi Prefecture and Sendai City and orders for periods of thorough measures to prevent a rebound, resulting in repeated requests for restaurants to close or reduce their hours and an extremely challenging environment for personal consumption and the economy.」

「During the first quarter, Japan's economic environment became extremely challenging as domestic and overseas economies were significantly affected by the spread of COVID-19, and economic conditions and the outlook remained very challenging. In Sendai, Miyagi Prefecture, where the Company is based, requests for restaurants to close or reduce their hours were repeatedly issued following the implementation of priority preventive measures in April 2021, as well as independent states of emergency declared by Miyagi Prefecture and Sendai City and orders for a period of thorough measures to prevent a rebound, resulting in an extremely challenging environment for personal consumption and the economy.」

「During the fiscal year, Japan's economic environment became extremely challenging as personal consumption declined amid requests to refrain from going out and conducting business under the state of emergency and the priority preventive measures issued in response to the spread of COVID-19.」

「During the first quarter, Japan's economic environment became extremely challenging as personal consumption declined amid requests to refrain from going out and conducting business under the state of emergency declared in response to the spread of COVID-19. Although the economy has been recovering gradually since the state of emergency was lifted, personal consumption and the outlook for the economy have remained uncertain due to concerns about subsequent waves of the infection.」

「During the fiscal year, Japan's economic environment was expected to continue its gradual recovery, supported by ongoing improvements in employment and income conditions, but personal consumption and the outlook for the economy have remained uncertain due to the slowdown following the October 2019 consumption tax increase and the global spread of COVID-19 since January 2020.」

「We continue to face a difficult operating environment, including sluggish personal consumption and increased personnel expenses due to national government policies.」

「We continue to face a difficult operating environment, including sluggish personal consumption and increased personnel expenses due to national government policies.」

「We continue to face a difficult operating environment, including sluggish personal consumption and increased personnel expenses due to national government policies.」

「We continue to face a difficult operating environment, including sluggish personal consumption and increased personnel expenses due to national government policies.」

「During the cumulative third quarter, Japan's economic environment was expected to continue recovering gradually amid ongoing improvements in employment and income conditions. However, the outlook for the economy remained uncertain due to unstable overseas political conditions and uneven domestic personal consumption, reflecting sluggish growth in real income caused by rising prices, among other factors.」

「During the cumulative second quarter, Japan's economic environment was expected to continue recovering gradually amid ongoing improvements in employment and income conditions. However, personal consumption moved unevenly due to sluggish growth in real income caused by rising prices and the effects of unfavorable weather, among other factors, and the outlook for the economy remained uncertain.」

「During the cumulative first quarter, Japan's economic environment was expected to continue recovering gradually amid ongoing improvements in employment and income conditions. However, personal consumption moved unevenly due to sluggish growth in real income caused by rising prices and the effects of unfavorable weather, among other factors, and the outlook for the economy remained uncertain.」

「In the areas where we operate stores, personal consumption remained sluggish. In our principal Yellow Hat business, in response to weak sales of seasonal products caused by the mild winters through the previous fiscal year, we conducted sales activities with the construction of a stable earnings base unaffected by weather as our 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, 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.」

「For the fiscal year, net sales were ¥20,061 million, a decrease of ¥784 million, or 3.8%, from the previous fiscal year. Ordinary profit was ¥262 million, a decrease of ¥117 million, or 31.0%. The decline in profit was mainly due to lower sales resulting from sluggish customer traffic caused by unfavorable weather, as well as increased investment expenses for new store openings and other initiatives.」

「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.」

「In the areas where our group operates stores, net sales remained weak due to the prolonged consumer focus on saving, as well as the disappearance of rush demand associated with the postponement of the further consumption tax increase.」