Improving domestic business profitability

「Revenue from the domestic business was 94.1% of the prior-year period (stores: 94.9%; EC: 89.4%).」

「Operating profit/Operating profit 76 0.6% 15.1%」

「As a result of controlling selling, general and administrative expenses below the prior-year level through lower outsourced sales commissions linked to revenue and fixed-cost controls, operating profit exceeded that of the prior-year period.」

「SG&A expenses fell to 97.5% of the same period of the previous year due to lower sales commissions, fixed-cost controls, and other factors. As a result, the operating loss improved from the same period of the previous year.」

「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.」

「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.」

「Although SG&A expenses were held to 98.9% of the same period of the previous year, the SG&A expense ratio rose 2.3 percentage points year on year. As a result, the operating margin declined 3.0 percentage points year on year to 3.8%, and operating profit fell below the same period of the previous year.」

「We restrained sale promotions, focused on selling at appropriate prices, and pursued initiatives including reducing the purchase cost ratio. As a result, domestic business gross profit for the consolidated fiscal year reached 104.0% of the same period of the previous year. Although gross profit increased year on year, it was insufficient to cover higher SG&A expenses associated with stronger advertising for core brands and other initiatives, and operating profit fell below the same period of the previous year.」

「We pursued initiatives including a focus on selling at appropriate prices. As a result, domestic business sales and gross profit for the cumulative third-quarter consolidated period exceeded the same period of the previous year. Although SG&A expenses increased in line with stronger advertising for core brands and other initiatives, higher gross profit resulted in operating profit and ordinary profit exceeding the same period of the previous year.」

「We restrained sale promotions, focused on selling at appropriate prices, and pursued initiatives such as cost improvements associated with shifting production to ASEAN. As a result, domestic business sales and domestic gross profit for the cumulative second-quarter consolidated period exceeded the same period of the previous year. Although SG&A expenses increased due to higher advertising spending for core brands and other factors, this was within plan, and higher gross profit resulted in operating profit and ordinary profit exceeding the same period of the previous year.」

「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.」

「Store sales increased to 104.0% of the same period of the previous year. E-commerce sales also increased to 101.2% of the same period of the previous year, bringing domestic sales for the consolidated fiscal year to 102.7% of the previous year. Continued efforts to maintain appropriate purchasing volumes and restrain sale promotions brought domestic gross profit for the consolidated fiscal year to 101.5% of the previous year. Although we worked to contain expenses company-wide, SG&A expenses increased to 103.7% of the previous year due to higher advertising and promotional expenses, sales-linked commissions, and other factors. As a result, operating profit and ordinary profit were below the previous year.」

「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.」

「Department-store brands and FB/SB brands grew, increasing store sales to 106.2% of the same period of the previous year. We also continued to restrain sale promotions and focus on full-price sales through a careful selling approach. As a result, domestic sales and domestic gross profit for the cumulative second-quarter consolidated period exceeded the same period of the previous year.」

「While increasing the top line, we continued company-wide efforts to reduce expenses, holding the SG&A expense ratio to around the previous year's level. Operating profit and ordinary profit were significantly higher than in the same period of the previous year.」

「While continuing company-wide efforts to reduce expenses, the SG&A expense ratio improved year on year, and operating profit and ordinary profit were also significantly higher than in the same period of the previous year. The ratio to sales declined from 52.5% to 50.8%.」

「Under these conditions, although our group's domestic business was affected by requests to refrain from going out through the first half, foot traffic recovered following the lifting of the state of emergency in the third quarter. With temperatures also falling, full-price sales of outerwear and other products performed well. E-commerce sales also remained firm, reaching 112.6% of the previous year. As a result, domestic sales and domestic gross profit for the cumulative third-quarter consolidated period were significantly higher than in the same period of the previous year.」

「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.」

「In addition to pursuing full-price sales and optimizing inventory controls, we further strengthened efforts to contain percentage rent, personnel costs, outsourced service fees, and advertising and promotional expenses associated with store closures. Together with the effect of higher sales, this improved the SG&A expense ratio year on year, and operating profit and ordinary profit were significantly higher than in the same period of the previous year.」

「In addition to pursuing full-price sales and optimizing inventory controls, we worked to reduce SG&A expenses by cutting advertising and promotional expenses and outsourced service fees, as well as personnel costs through reductions in executive compensation. As a result, the domestic business became profitable.」

「We are working to further contain SG&A expenses through reductions in advertising and promotional expenses, percentage rent, and sales commissions.」

「Following the lifting of the state of emergency, all stores resumed operations in early June. However, the slow recovery in customer traffic, particularly in urban areas, voluntary restraint on returning home during the Bon holiday, and unsettled weather also had an impact. Although the sell-through rate improved as sale promotions were curtailed, domestic sales and domestic gross profit were below the same period of the previous year. We have continued efforts to control SG&A expenses by reducing advertising and promotional expenses, percentage rent, and sales commissions.」

「In our group's domestic business, the decline in store sales at commercial facilities that were closed, including department stores, shopping-center malls, fashion buildings, and station buildings, had a significant impact. Domestic existing-store sales and domestic gross profit during the cumulative period were below the same period of the previous year. We are pursuing initiatives to contain SG&A expenses, including reductions in advertising and promotional expenses, waivers of percentage rent, and cuts in sales commissions.」

「Domestic gross profit improved as a result of the lower purchase cost ratio from ongoing supply chain management (SCM) reforms and the company-wide promotion of a full-price sales strategy.」

「Domestic gross profit benefited from the lower purchase cost ratio resulting from ongoing SCM reforms and the company-wide promotion of a full-price sales strategy, resulting in a significant improvement in the domestic gross profit margin during the cumulative period. Although we increased staffing mainly at stores to promote work-style reforms, a review of outsourced service fees and reductions in percentage rent and sales commissions helped control SG&A expenses, and domestic operating profit progressed ahead of plan.」

「Domestic gross profit remained at about the previous year's level in the second quarter because weak demand for sales in July led the company to prioritise inventory clearance through August, although the domestic gross profit margin improved significantly during the cumulative second-quarter period. For selling, general and administrative expenses, reviews of outsourcing costs and reductions in percentage rent and sales commissions contributed to cost containment, and domestic operating profit was tracking ahead of plan.」

「Company-wide supply chain management (SCM) initiatives improved the purchase cost ratio and curtailed discount sales, resulting in a significant improvement in the gross profit margin. In addition, strict reviews of logistics costs and reductions in percentage rent and sales commissions helped control SG&A expenses, enabling us to achieve an operating margin of more than 2 digits.」

「As a result, domestic existing-store sales declined only slightly year on year. However, improved gross profit margins resulting from fewer sale promotions and a lower purchase cost ratio, together with lower SG&A expenses through reduced advertising and promotional expenses using digital marketing and personnel cost controls through more efficient staffing, led to a significant year-on-year improvement in profitability.」

「Efforts to improve the gross profit margin by restraining sales promotions and improving the purchase cost ratio, together with reductions in advertising expenses through digital marketing and control of personnel expenses through workforce efficiency, successfully reduced selling, general and administrative expenses and led to improved profitability.」

「The company also pursued supply chain management reform aimed at improving the purchase cost ratio, logistics costs and lost sales opportunities, which led to improved profitability.」

「Against this backdrop, our group is addressing the priority issues of improving the profitability of the domestic business and continuously expanding the overseas business, primarily in China. We are also continuing to address the issues of further enhancing brand value, improving product quality, securing and developing human resources, strengthening internal control systems, and ensuring stable operation of core systems.」