Protecting profit through inventory optimization and cost controls during COVID-19
First written in FY2020. 9 of 19 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2022: 2 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Through stricter control of planned purchasing and early conversion of inventory into cash in line with inventory levels, we substantially reduced inventory valuation losses from the prior-year period.」
Measures to secure earnings through inventory optimisation and cost management continued, with a reduction in inventory valuation losses reported. - FY2026-H1AdvancedAnnual report
「Selling, general and administrative expenses were 97.5% of the prior-year period due to lower sales outsourcing expenses and the containment of fixed costs, among other factors.」
The post-pandemic earnings-protection measures continued through lower sales outsourcing expenses and fixed-cost controls, keeping selling, general and administrative expenses at 97.5% of the prior-year period. - FY2025SG&A controls failed to offset the decline in gross profitAnnual report
「Although SG&A expenses were controlled below the level of the same period of the previous year by containing personnel and other costs despite depreciation on logistics equipment and higher new business development costs, this was insufficient to offset the decline in gross profit, and operating profit fell below the same period of the previous year.」
Total selling, general and administrative expenses declined by ¥22 million year on year due to reductions in personnel expenses and other costs, but the ratio rose from 53.6% to 55.5% as revenue declined, weakening earnings protection. - FY2025-H1Profit protection weakened as the SG&A ratio roseAnnual report
「SG&A expenses were held to 100.9% of the same period of the previous year, but the SG&A expense ratio rose 1.9 percentage points year on year. As a result, operating profit fell below the same period of the previous year.」
Total selling, general and administrative expenses were 100.9% of the prior-year period, but the ratio rose by 1.9 percentage points due in part to lower sales, causing operating income to fall below the prior-year period. - FY2024Shift from expense restraint to operations including growth investmentAnnual report
「Although gross profit increased year on year, it was not enough to cover the increase in selling, general and administrative expenses associated with stronger advertising for core brands and other measures, and operating income fell below the prior-year period.」
In addition to its previous expense controls, the company spent more to strengthen advertising for core brands, increasing selling, general and administrative expenses, while operating income fell below the prior-year period. - FY2024-Q3RestatedAnnual report
「Selling, general and administrative expenses increased year on year due to stronger advertising for core brands and other factors, but operating income and ordinary income exceeded the prior-year period as gross profit increased.」
In addition to its previous expense controls, the company invested in advertising for core brands, increasing selling, general and administrative expenses, but operating income and ordinary income exceeded the prior-year period due to higher gross profit. - FY2024-Q1Advertising expenses invested according to planAnnual report
「Although SG&A expenses increased year on year due to advertising and promotional spending associated with reopening flagship stores in line with the recovery in foot traffic and strengthening advertising for core brands, this was within plan, and operating profit and ordinary profit exceeded the same period of the previous year.」
Rather than relying solely on expense controls during the pandemic, the company made planned expenditures to reopen flagship stores in line with the recovery in foot traffic and advertise its core brands, resulting in higher selling, general and administrative expenses. - FY2023Expenses were controlled, but profit declined as SG&A expenses increasedAnnual report
「Although the company worked to control expenses across the group, selling, general and administrative expenses increased to 103.7% of the prior-year period due to higher advertising and sales-promotion expenses, sales commissions linked to revenue and other costs. As a result, operating income and ordinary income fell below the prior-year period.」
Expense controls continued, but higher advertising and sales-promotion expenses and sales commissions linked to revenue increased selling, general and administrative expenses, weakening earnings protection. - FY2023-Q3Expenses were controlled, but profit declined as SG&A expenses increasedAnnual report
「Although we worked to contain expenses company-wide, SG&A expenses increased to 104.1% of the same period of the previous year due to higher sales-linked commissions and other factors. As a result, operating profit and ordinary profit were below the same period of the previous year.」
Although the company continued company-wide expense controls, selling, general and administrative expenses rose to 104.1% of the prior-year period due to increases in sales commissions linked to revenue and other expenses, causing operating income and ordinary income to fall below the prior-year period. - FY2023-Q2AdvancedAnnual report
「By strengthening company-wide initiatives and tightening expense controls, the company kept the selling, general and administrative expense ratio around the prior-year level, while operating income and ordinary income were well above the prior-year period.」
The company strengthened company-wide initiatives and expense controls, keeping the selling, general and administrative expense ratio around the prior-year level while substantially increasing operating income and ordinary income year on year. - FY2022AdvancedAnnual report
「While continuing company-wide efforts to reduce expenses, the selling, general and administrative expense ratio improved year on year, and operating profit and ordinary profit also significantly exceeded the previous year.」
As measures to secure earnings during the pandemic, the company continued to reduce expenses, improving the selling, general and administrative expense ratio from 52.5% to 50.8% and securing operating income of ¥2,752 million and ordinary income of ¥2,846 million. - FY2022-Q3AdvancedAnnual report
「While continuing company-wide efforts to reduce expenses, the selling, general and administrative expense ratio improved year on year, and operating profit and ordinary profit also significantly exceeded the previous year.」
As measures to secure earnings during the pandemic, the company continued to reduce expenses, improving the selling, general and administrative expense ratio and substantially increasing operating income and ordinary income year on year. - FY2022-Q2AdvancedAnnual report
「In addition to pursuing full-price sales and optimizing inventory controls, we further strengthened efforts to contain outsourced service fees and other expenses. As a result, the SG&A expense ratio improved year on year, while operating profit and ordinary profit were significantly higher than in the same period of the previous year.」
As measures to secure earnings during the pandemic, the company further strengthened full-price sales, inventory control and efforts to curb outsourcing expenses and other costs, improving the selling, general and administrative expense ratio and increasing operating income and ordinary income year on year. - FY2022-Q1AdvancedAnnual report
「In addition to thoroughly promoting full-price sales and optimising inventory control, the company further strengthened efforts to curb variable rent, personnel expenses, outsourcing expenses, advertising expenses and other costs associated with store closures.」
As measures to secure earnings during the pandemic, the company further strengthened full-price sales, inventory control and efforts to curb selling, general and administrative expenses, including rent and personnel expenses. Together with the effect of higher revenue, this resulted in operating income and ordinary income well above the prior-year period. - FY2021AdvancedAnnual report
「In the domestic business, COVID-19 had a significant impact on performance throughout the fiscal year. Domestic e-commerce sales increased substantially as the company strengthened e-commerce initiatives that leveraged the sales capabilities of Staff Start, live commerce and other channels. In addition to thoroughly promoting full-price sales and optimising inventory control, the company worked to reduce selling, general and administrative expenses by cutting advertising and outsourcing expenses and curbing personnel expenses through reductions in executive compensation, among other measures, resulting in a profit for the domestic business.」
As measures to secure earnings during the pandemic, the company strengthened e-commerce, full-price sales and inventory control and reduced advertising, outsourcing and personnel expenses, resulting in a profitable domestic business. - FY2021-Q3RestatedAnnual report
「We are working to further contain SG&A expenses through reductions in advertising and promotional expenses, percentage rent, and sales commissions.」
As a measure to secure earnings during the pandemic, the company further advanced efforts to curb selling, general and administrative expenses by reducing advertising expenses, variable rent and sales outsourcing expenses. - FY2021-Q2RestatedAnnual report
「We are continuing to curb selling, general and administrative expenses by reducing advertising expenses, variable rent and sales outsourcing expenses, among other measures.」
As a measure to secure earnings during the pandemic, the company continued to curb selling, general and administrative expenses by reducing advertising expenses, variable rent and sales outsourcing expenses. - FY2021-Q1AdvancedAnnual report
「With respect to selling, general and administrative expenses, we are taking steps including curbing advertising expenses, reducing variable rent and cutting sales outsourcing expenses.」
As measures to secure earnings during the pandemic, the company implemented and continued to promote reductions in advertising expenses, variable rent and sales outsourcing expenses. - FY2020First statedAnnual report
「Based on this assessment of the situation, for the fiscal year ending February 2021, we will thoroughly optimise inventory and manage costs in Japan and overseas, making the securing of earnings our top priority.」
As a response for the fiscal year ending February 2021 to the spread of the infection, the company newly identified securing earnings through inventory optimisation and cost management in Japan and overseas as a priority measure.