Rising paper and transportation costs

「The ratio of advertising expenses to net sales improved, declining 0.1 percentage points year on year, due to greater efficiency in advertising and direct-mail costs and increased distribution of customer-segmented catalogs to existing customers.」

「Product shipping costs and related expenses declined in line with shipment volumes, while logistics-related costs also declined due to the adoption of delivery routes with lower per-shipment charges and improvements to packaging materials, bringing the total to ¥15,794 million, down 4.4% year on year.」

「Logistics-related costs declined due to the adoption of delivery routes with lower per-shipment charges and improvements to packaging materials in the subscription delivery business.」

「Freight costs 2,597 2,321」

「Selling, general and administrative expenses were ¥8,171 million, down 0.2% year on year. Although product shipping costs and business commissions decreased as shipment volumes declined, the Company actively incurred strategic expenses to recruit and train new personnel and develop its next-generation web systems infrastructure.」

「Higher prices caused by surging energy prices increased logistics-related costs and advertising and printing costs, putting pressure on profit.」

「Selling, general and administrative expenses totaled ¥8,185 million, down 0.5% from the same period of the previous year, as product postage and business commissions declined with lower sales, despite active investment in advertising to strengthen the customer base and develop the brand, among other measures.」

「Selling, general and administrative expenses increased as product shipping costs rose with net sales and as advertising expenses increased due to active investment in television commercials and other advertising to expand the customer base.」

「Selling, general and administrative expenses totaled ¥12,474 million, up 3.3% from the same period of the previous year. Selling expenses such as product postage increased with the rise in shipment volumes, and advertising expenses increased as the company implemented various measures to acquire new customers and strengthen ongoing relationships with customers. Depreciation expenses also increased following the construction of a new head office.」

「Selling, general and administrative expenses increased as the rise in shipments increased selling expenses such as product shipping costs and advertising expenses.」

「Selling, general and administrative expenses totaled ¥4,214 million, up 11.6% from the same period of the previous year. Selling expenses, including product postage and business commissions, increased with the rise in shipment volumes, and advertising expenses such as media printing costs increased as the number of customers grew. Facilities costs also increased owing to higher depreciation expenses associated with the construction of a new head office.」

「Advertising expenses ¥3,915 million　Freight costs ¥2,679 million」

「Selling, general and administrative expenses increased as growth in customer numbers led to more shipments, which in turn increased selling expenses such as product shipping costs and advertising expenses.」

「The number of shipments increased due to growth in customer numbers and an increase in separate deliveries resulting from delays in product procurement caused by COVID-19, which in turn increased selling expenses such as product shipping costs.」

「Product shipping costs increased due to higher per-shipment charges, and depreciation and amortization also increased, bringing the total to ¥15,113 million, up 1.4% year on year.」

「Selling, general and administrative expenses totaled ¥11,151 million, up 1.5% from the same period of the previous year, owing to higher selling expenses resulting from increased delivery unit rates and higher facilities costs, including depreciation expenses.」

「Selling, general and administrative expenses totaled ¥7,224 million, up 2.0% from the same period of the previous year, owing to higher delivery unit rates and increased facilities costs, among other factors.」

「Selling, general and administrative expenses totaled ¥3,662 million, up 2.2% from the same period of the previous year, owing to higher selling expenses resulting from increased postage rates and higher facilities costs.」

「Product shipping costs increased due to higher per-shipment charges, bringing the total to ¥14,902 million, up 2.0% year on year.」

「Selling, general and administrative expenses totaled ¥10,987 million, up 1.0% from the same period of the previous year, owing to higher product postage resulting from increased delivery costs and higher depreciation expenses, among other factors.」

「Freight costs 907 948」

「We expect product shipping costs to increase because delivery charges for shipping products to customers, included in selling, general and administrative expenses, are expected to rise compared with the fiscal year ended February 2018.」

「Because of the nature of mail-order sales, catalog and customer delivery costs account for a high proportion of selling expenses. Going forward, fluctuations in catalog costs due to paper market conditions and in customer delivery costs due to rising domestic transportation costs may affect our group's performance.」