Insufficient Inventory to Support Flagship Store Growth
First written in FY2019-Q1. 9 of 25 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2022: 14 of 40 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026Merchandise inventory increased by ¥209 millionAnnual report
「This was mainly due to a ¥180 million increase in trade receivables, a ¥209 million increase in merchandise, and a ¥100 million increase in forward exchange contracts.」
The merchandise balance at the end of the fiscal year increased by ¥209 million from the end of the previous fiscal year. Inventory continued to increase after previous reductions, but no losses due to stockouts or stagnant inventory were disclosed. - 2026-06-01OtherGeneral Meetings of Shareholders
「If order volumes fail to reach demand forecasts and the inventory turnover period becomes prolonged, inventory valuation losses may be recorded in the financial statements for the following fiscal year and thereafter.」
The company disclosed product inventory of ¥2,522.151 million and the possibility of inventory valuation losses if demand falls short and inventory remains on hand for a prolonged period. This does not state that a valuation loss has occurred at present. - FY2026-H1Merchandise inventory increased by ¥632 millionAnnual report
「This was mainly due to a ¥632 million increase in merchandise, a ¥137 million decrease in cash and deposits, and a ¥737 million decrease in trade receivables.」
The merchandise balance at the end of the interim accounting period increased by ¥632 million from the end of the previous fiscal year. Inventory balances continued to increase after declining in the past as a result of inventory reduction. - FY2025Merchandise inventory increased by ¥202 millionAnnual report
「This was mainly due to a ¥277 million increase in trade receivables and a ¥202 million increase in merchandise.」
The merchandise balance at the end of the fiscal year increased by ¥202 million from the end of the previous fiscal year. Although the increase in merchandise inventory was quantified, no loss due to stockouts or stagnant inventory was disclosed. - FY2025-H1Merchandise inventory increased by ¥116 millionAnnual report
「This was mainly due to a ¥564 million increase in funds resulting from a decrease in trade receivables.」
In cash flows for the interim accounting period, inventories increased by ¥116 million, confirming an increase in the merchandise balance from the end of the previous fiscal year. - FY2024Merchandise inventory increased by ¥290 millionAnnual report
「This was mainly due to a ¥290 million increase in merchandise and a ¥142 million decrease in cash and deposits.」
The merchandise balance at the end of the fiscal year increased by ¥290 million from the end of the previous fiscal year, reversing the inventory reduction seen in the previous fiscal year. No loss due to stockouts or stagnant inventory was disclosed. - FY2024-Q3Merchandise inventory increased by ¥933 millionAnnual report
「This was mainly due to a ¥933 million increase in merchandise, an ¥800 million decrease in cash and deposits, and a ¥510 million decrease in trade receivables.」
The merchandise balance at the end of the third-quarter accounting period increased by ¥933 million from the end of the previous fiscal year. Inventory balances shifted to an increase from the declines indicated in earlier disclosures on inventory optimization. - FY2024-Q2Merchandise inventory increased by ¥704 millionAnnual report
「This was mainly due to a ¥704 million increase in merchandise, a ¥651 million decrease in cash and deposits, and a ¥605 million decrease in trade receivables.」
The merchandise balance at the end of the second-quarter accounting period increased by ¥704 million from the end of the previous fiscal year. Inventory balances increased after declining in the previous quarter as a result of inventory optimization. - FY2024-Q1RestatedAnnual report
「Despite rapid changes in the external environment, the company continued its longstanding initiatives to optimize inventory and delivery practices, reduce inventory, and lower delivery costs, while also reducing selling, general and administrative expenses.」
The company continues initiatives to reduce inventory and delivery costs, with no material changes disclosed in its policy for addressing inventory supply-and-demand management. - FY2023MitigatedAnnual report
「This was mainly due to an ¥821 million increase in cash and deposits, a ¥1,171 million decrease in merchandise, and a ¥168 million decrease in consumption tax receivables and other items.」
The merchandise balance decreased by ¥1,171 million from the end of the previous fiscal year, indicating progress in inventory optimization and reduction. - FY2023-Q3MitigatedAnnual report
「This was mainly due to a ¥1,273 million increase in cash and deposits, a ¥433 million decrease in trade receivables, and a ¥906 million decrease in merchandise.」
The merchandise balance decreased by ¥906 million from the end of the previous fiscal year, indicating progress in inventory reduction. - FY2023-Q2MitigatedAnnual report
「This was mainly due to a ¥1,050 million increase in cash and deposits, a ¥486 million decrease in trade receivables, and a ¥723 million decrease in merchandise.」
The merchandise balance decreased by ¥723 million from the end of the previous fiscal year, with a new figure indicating progress in inventory optimization. - FY2023-Q1MitigatedAnnual report
「This was mainly due to a ¥745 million increase in cash and deposits, a ¥525 million decrease in trade receivables, and a ¥258 million decrease in merchandise.」
The merchandise balance at the end of the first quarter decreased by ¥258 million from the end of the previous fiscal year, providing a reported figure indicating progress in inventory optimization. - FY2022RestatedAnnual report
「The company is working to improve the accuracy of demand forecasts and ordering plans. However, if inaccurate assessments of demand trends result in lost sales opportunities due to stockouts or in stagnant inventory, this could affect its operating results, financial position, and other aspects of its business.」
The company continues to disclose the risks of lost sales opportunities due to stockouts and stagnant inventory, while identifying improvements in the accuracy of demand forecasts and ordering plans as an issue to be addressed. - FY2022-Q1RestatedAnnual report
「The company continues initiatives to improve profitability, including reviewing selling prices and its product mix, and reducing storage and outsourced logistics costs through inventory optimization and appropriate delivery arrangements.」
The company continues to reduce logistics costs through inventory optimization and appropriate delivery arrangements, but has not disclosed new milestones for inventory balances or other measures. - FY2021MitigatedAnnual report
「This was mainly due to the recognition of ¥1,850 million in profit before income taxes, a ¥266 million decrease in funds due to an increase in trade receivables, and a ¥256 million increase in funds due to a decrease in inventories associated with inventory optimization.」
Inventories decreased by ¥256 million as inventory was optimized, and the company continues to address inventory supply-and-demand management and logistics cost reduction. - FY2021-Q3RestatedAnnual report
「As a result of continuing initiatives to improve profitability, including reviewing selling prices and product mix, optimizing inventory and reducing storage and outsourced logistics costs through appropriate distribution, both the gross profit margin and operating profit margin improved, resulting in higher sales and profit year on year.」
The company continues initiatives to reduce storage and outsourced logistics costs through inventory optimization and appropriate delivery arrangements. No new inventory-balance improvement milestone has been disclosed. - FY2021-Q1MitigatedAnnual report
「This was mainly due to a ¥1,196 million increase in cash and deposits and a ¥533 million decrease in merchandise.」
The merchandise balance at the end of the quarter decreased by ¥533 million from the end of the previous fiscal year. The company also states that inventory optimization continues as an initiative to improve profitability. - FY2020MitigatedAnnual report
「Initiatives to address the so-called logistics crisis, which continued from the previous fiscal year, progressed smoothly. The company reduced logistics costs by reviewing storage efficiency and warehouse storage area, optimizing inventory levels and inventory value, appropriately allocating inventory and reducing inter-warehouse transportation costs, and reviewing ordering thresholds and reducing outsourced costs related to inbound and outbound handling.」
The company reviewed inventory levels, storage efficiency, placement, and ordering thresholds. During the fiscal year, merchandise inventory decreased by ¥627 million, and storage and outsourced logistics costs, among others, were reduced. - FY2020-Q3MitigatedAnnual report
「As part of its supply chain management initiatives, the company reviewed storage efficiency and optimized inventory levels, thereby reducing the floor space of some warehouses and controlling inbound volumes. It reduced storage and outsourced logistics costs and continues to prepare for the introduction of a warehouse management system to optimize future inventory allocation.」
The company continues to address inventory supply-and-demand management risks by optimizing inventory levels and storage efficiency, reducing warehouse capacity, controlling inbound volumes, and preparing to introduce a warehouse management system. - FY2020-Q1MitigatedAnnual report
「As part of its supply chain management initiatives, the company optimized inventory levels, reduced the floor space of some warehouses, and controlled inbound volumes, thereby reducing storage and outsourced logistics costs. It also began preparing to introduce a warehouse management system to optimize inventory allocation.」
The company is addressing inventory supply-and-demand management by preparing to introduce a warehouse management system aimed at optimizing inventory levels and placement and controlling inbound volumes. - FY2019MaterialisedAnnual report
「Meanwhile, in response to the so-called logistics crisis, the company comprehensively reviewed its prices, resulting in sales below the initially projected level. It also replenished inventory from the second half to offset the decline in sales caused by product stockouts in the first half, but sales still fell short of expectations. As a result, excess inventory arose and storage costs increased due to the expansion of warehouse capacity.」
In the first half, sales declined due to product stockouts, while in the second half, excess inventory and higher storage costs arose after inventory was replenished, causing inventory supply-and-demand management risks to emerge in multiple forms. - FY2019-Q3RestatedAnnual report
「Sales at mall-based stores fell below the prior-year level due to multiple factors, including lost sales opportunities from product shortages in the first half and weak sales of seasonal products due to the mild winter.」
The company continues to describe a situation in which insufficient inventory was secured for the growth of the flagship and marketplace stores, and lost sales opportunities from product stockouts in the first half contributed to marketplace store sales falling below the previous year. - FY2019-Q2MaterialisedAnnual report
「Sales at the marketplace stores fell below the previous year due to multiple factors, including lost sales opportunities resulting from product stockouts.」
The company states that lost sales opportunities due to product stockouts actually occurred, causing marketplace store sales to fall below the previous year. - FY2019-Q1MaterialisedAnnual report
「Meanwhile, the company was unable to secure sufficient inventory in line with the flagship store’s growth rate, resulting in sluggish sales and profit at each stage.」
The company states that it was in fact unable to secure sufficient inventory to match the flagship store’s growth rate, which led to sluggish sales and profit at each stage.