Seasonal Product Demand Fluctuations Caused by Climate Conditions

「Although demand for seasonal merchandise tends to be concentrated within certain periods, it is affected by unpredictable and uncontrollable changes in climate conditions. Changes in climate conditions may therefore continue to affect the Company's financial position and operating results.」

「In the Lifestyle unit, sales of parasols, hats and eyewear-related products remained strong due to increased opportunities to go out, the effects of extremely hot weather and other factors. On the other hand, sales in the kitchen category struggled as demand for products used at home settled down.」

「Meanwhile, sales of high-priced products such as tops and outerwear in the apparel division, which had performed strongly in the same quarter of the previous year, were weak because the lingering late-summer heat from September onward lasted longer than expected.」

「In the Home Keeper unit, sales of indoor greenery, including miniature foliage plants and medium-sized potted foliage plants, remained strong. On the other hand, sales of outdoor greenery declined due to typhoons, the record cold wave around the year-end and New Year period, and other factors.」

「In the Home Keeper unit, sales of indoor greenery, including miniature foliage plants and medium-sized potted foliage plants, remained strong. On the other hand, sales of outdoor greenery declined because of the record cold wave around the year-end and New Year period.」

「In the Athle unit, sales of fall and winter merchandise declined because there were many days when temperatures did not fall sufficiently, although sales of tops from popular outdoor brands remained strong.」

「In the apparel division, sales of tops, bottoms and outerwear remained strong because warm days continued intermittently until around late April 2022 and for other reasons.」

「In the core Green division, sales of plants, potting soil, fertilizer and other products declined due to falling temperatures, snowfall and other factors.」

「From December 2020 through January 2021, sales of water-related protective products in the timber repair division and products for preventing freezing, snow and frost in the gardening division remained strong, owing to falling temperatures, snowfall and other factors.」

「Sales of outerwear in the sports casual category struggled in November 2020 because temperatures did not fall sufficiently.」

「Sales of winter appliances and heating-related products in each division struggled because of the mild winter weather.」

「In the Lifestyle unit, sales in the makeup category were strong following the introduction of a new makeup brand at the cosmetics section of hybrid stores, featuring carefully selected colors and textures designed to bring out the beauty of different skin types. Sales in the shampoo category were also strong, supported by hit products in the high-value-added and salon-use shampoo lines. However, sales and gross profit in the fashion accessories category and other categories with high sales weightings remained sluggish because days of high temperatures continued from September to October 2019.」

「Meanwhile, sales, gross profit and other figures in the fashion accessories category remained sluggish because mild winter weather and the effects of a spell of cool, rainy-season weather that lasted until late July 2019 caused seasonal merchandise to move slowly.」

「Sales in the gardening division remained sluggish, as sales of plants and vegetable seedlings declined due to falling temperatures and unsettled weather in early spring.」

「Winter products such as windbreakers and snowboarding-related goods, which are core categories, remained sluggish because there were many days when temperatures did not fall sufficiently.」

「Temperatures remained high even in November, slowing the movement of seasonal products, and sales of categories such as apparel accessories, which account for a high proportion of sales, remained sluggish.」

「While plant-related products in the gardening division, which accounts for a high proportion of sales, performed poorly due to lower temperatures and snowfall from December through February, winter products such as heating equipment in the home appliance division performed well.」

「Although demand for seasonal products tends to be concentrated in a specific period, it is affected by fluctuations in weather conditions that cannot be predicted or controlled, and fluctuations in weather conditions may continue to affect our financial condition and business performance. In addition, if disasters or other events damage the areas surrounding our stores and disrupt smooth business operations, our business, financial condition and business performance may be affected.」

「Sales in the core gardening division were sluggish due to the delayed rise in temperatures in March」

「However, high temperatures persisted from September through October, accompanied by frequent rainy weather, which had a significant adverse impact on our core gardening and leisure products, while the other remodeling business remained sluggish.」

「However, persistently high temperatures and frequent rainy weather in September had a significant adverse impact on seasonal products, chiefly gardening supplies and home appliances, while the other remodeling business remained sluggish.」

「At アレックススポーツ, sales of winter clothing and other products were sluggish due to the impact of a mild winter.」

「Because demand is affected by fluctuations in weather conditions that cannot be predicted or controlled, fluctuations in weather conditions may continue to affect our financial condition and business performance.」