Order Fluctuations Driven by Consumer Needs and Fashion Trends

「Demand for lace materials in the women's apparel industry remained extremely low and conditions remained extremely difficult. As announced on 13 November 2019, the textile business became extremely difficult to continue because of factors including the closure of major suppliers and a shortage of successors resulting from the deterioration in the recent business environment for the embroidered lace industry. Accordingly, we discontinued the textile business on 31 March 2020.」

「As announced on 13 November 2019, the Company decided to discontinue its textile business as of 31 March 2020 because the business became extremely difficult to continue due to factors including the closure of major suppliers and a lack of successors amid the recent deterioration in the operating environment for embroidered lace.」

「In the textile business, demand for lace materials remained weak and conditions were extremely difficult. The Company sought to stimulate demand by accumulating orders for special products in small lots. It also developed autumn/winter samples in the hope of securing orders, but sales fell short of the target. Consequently, revenue decreased 14.0% year on year to ¥15.971 million, and the business posted an operating loss of ¥1.513 million, compared with an operating loss of ¥0.562 million in the same quarter of the previous year.」

「Because our group's textile business primarily receives orders from apparel manufacturers, textile trading companies and other customers, order volumes may be affected by trends in personal consumption and fashion, which could affect our group's operating results and financial condition.」

「In the textile business, demand for lace materials remained weak and conditions continued to be difficult. The Company continued to perform well in autumn orders for apparel manufacturers and began mass production of relatively strong spring/summer products in December 2018, but the order lots were too small to achieve planned sales. Consequently, revenue decreased 12.9% year on year to ¥34.869 million, while operating profit decreased 61.7% to ¥1.008 million.」

「In the textile business, demand for lace materials remained weak and conditions continued to be difficult. The Company continued to perform well in autumn orders for apparel manufacturers, and requests for spring/summer samples for the following year were relatively strong. However, changing fashion trends did not readily recover, and the fashion trend centered on lace materials failed to regain momentum. Consequently, revenue decreased 9.9% year on year to ¥18.561 million, and the business posted an operating loss of ¥0.562 million, compared with operating profit of ¥0.219 million in the same quarter of the previous year.」

「In the textile business, demand for lace materials remained weak and conditions continued to be difficult. Although the Company performed well in autumn orders for apparel manufacturers, orders for midsummer cotton lace, normally a core product at this time of year, were almost nonexistent and failed to grow. Consequently, revenue decreased 23.2% year on year to ¥10.016 million, and the business posted an operating loss of ¥0.331 million, compared with operating profit of ¥0.478 million in the same quarter of the previous year.」

「Demand for lace materials in the women's apparel industry declined sharply, resulting in extremely difficult conditions. Demand for cotton lace, a standard product, declined in particular. Although efforts were made to obtain orders from apparel manufacturers specializing in lace products, most orders were for small lots, making it impossible to increase sales as planned.」

「In the textile business, changes in fashion trends in the women's apparel industry that began in the previous consolidated fiscal year continued to affect results for longer than expected, and the severe decline that had begun showed no prospect of recovery.」

「The textile business was significantly affected by changes in fashion trends in the women's apparel industry. Orders for lace materials continued to trend toward smaller lots, while the decline that began in the previous consolidated fiscal year showed no sign of improvement.」

「In the textile business, the Company secured orders for custom-made and off-the-shelf sale items for summer and midsummer products in the first quarter, and large orders for cotton lace, mainly custom-made products for major apparel companies, in the second quarter. However, fashion trends began to change in April 2016, reducing total lace orders. Consequently, revenue decreased 6.0% year on year to ¥58.450 million, while operating profit decreased 19.4% to ¥4.811 million.」

「The sharp decline in orders for cotton lace for high-summer products, which had performed well in the previous year, weighed on results. Net sales decreased 26.2% year on year to ¥33.881 million, and operating profit decreased 57.9% to ¥1.872 million.」

「In the textile business, orders for cotton lace for high-summer products, which had performed well in the previous year, fell sharply. Net sales decreased 55.9% year on year to ¥14.985 million, and operating profit decreased 93.0% to ¥333 thousand.」

「Because our group's textile business primarily receives orders from apparel manufacturers, textile trading companies and other customers, order volumes may be affected by trends in personal consumption and fashion, which could affect our group's operating results and financial condition.」