Store closures and business-continuity risk from the spread of COVID-19
First written in FY2020. 6 of 18 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2026.
Baroque Japan Limited moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Due to the impact of a large-scale infectious disease, commercial facilities in Japan and overseas where the group operates stores are expected to implement shorter operating hours or temporary closures. This could reduce revenue and adversely affect the group's performance.」
The risk of store closures and lower profitability arising from large-scale infectious diseases generally, rather than specifically COVID-19, continues to be disclosed. - FY2025ReframedAnnual report
「Due to the impact of a large-scale infectious disease, commercial facilities in Japan and overseas where the group operates stores are expected to implement shorter operating hours or temporary closures. This could reduce revenue and adversely affect the group's performance.」
The wording was generalised from risks specific to COVID-19 to the risk of store closures and lower profitability arising from large-scale infectious diseases generally. Establishing management systems for infection-control measures and product transfers was also presented as a response. - FY2024MitigatedAnnual report
「During the current consolidated fiscal year, Japan's economy showed signs of recovery as economic activity normalised following the reclassification of COVID-19 to Category 5 and inbound demand increased.」
The impact of COVID-19 on domestic stores and business operations was smaller than in the previous fiscal year as the infection was reclassified to Category 5 and economic activity normalised. - FY2024-Q2MitigatedAnnual report
「The Japanese economy during the first six months of the current consolidated fiscal year gradually recovered as economic activity normalized following COVID-19’s reclassification to Category 5 and inbound demand increased. Despite the impact of higher raw-material prices and yen depreciation, personal consumption showed signs of recovery.」
The impact of COVID-19 on domestic stores and business operations declined further as the infection was reclassified to Category 5, economic activity normalised and personal consumption recovered. - FY2024-Q1MitigatedAnnual report
「The flagship store, The SHEL’TTER TOKYO Tokyu Plaza Omotesando Harajuku, reopened, pedestrian traffic increased following the lifting of restrictions on activities, and inbound demand recovered. Against this backdrop, recovery strengthened, led by FB brands and department-store brands, and store sales increased to 106.7% of the prior-year level.」
In Japan, the lifting of restrictions on activities and the recovery in foot traffic and inbound demand brought store sales to 106.7% of the prior-year period, reducing the impact of COVID-19 on store sales. In China, however, operations remained in the recovery process even after the end of the relevant policies. - FY2023RestatedAnnual report
「The group's China joint venture with strategic business partner Belle International Holdings Limited was also significantly affected by the spread of COVID-19 in China, including store closures associated with the Shanghai lockdown and intermittent restrictions on activities in various parts of China even after the lockdown was lifted.」
While restrictions on activities were eased and foot traffic recovered in Japan, the impact of the infection, store closures and restrictions on activities continued in the China joint venture. - FY2023-Q3Domestic impact eased while the impact in China continuedAnnual report
「The group's China joint venture with strategic business partner Belle International Holdings Limited (Belle) was also significantly affected by the spread of COVID-19 in China, including store closures associated with the Shanghai lockdown and intermittent restrictions on activities in various parts of China even after the lockdown was lifted.」
While restrictions on activities were eased and foot traffic recovered in Japan, store closures and restrictions on activities continued in China after the Shanghai lockdown, and the impact on business operations continued. - FY2023-Q2WorsenedAnnual report
「The Japanese economy during the first six months of the current consolidated fiscal year remained in an uncertain operating environment because of the spread of the seventh wave of COVID-19, soaring raw-material and energy prices, and concerns about foreign-exchange trends associated with the rapid depreciation of the yen.」
The expansion of the seventh wave of COVID-19 was newly identified, indicating that operating-environment risks under the pandemic continued and intensified. - FY2023-Q1MitigatedAnnual report
「In the group's domestic operations, restrictions on activities were eased from late March and foot traffic recovered. As a result, sales at stores, particularly department-store brands and FB/SB brands, showed a broad-based recovery and increased to 114.5% of the prior-year period.」
In Japan, the easing of restrictions on activities and the recovery in foot traffic brought store sales to 114.5% of the prior-year period, reducing the impact of COVID-19 on domestic store sales from the previous fiscal year. In China, however, the impact of restrictions on activities continued. - FY2022MaterialisedAnnual report
「During the current consolidated fiscal year (the fiscal year ending February 2022), the company temporarily closed stores from April to May 2021. Fixed costs incurred during the temporary store closures, including personnel expenses and depreciation, were recorded as a loss from temporary store closures under extraordinary losses.」
Temporary store closures due to the infection were also implemented during the current fiscal year, and a ¥106 million loss from temporary store closures was recorded. The report also describes the impact of the rapid spread of the Omicron variant in the fourth quarter. - FY2022-Q3MitigatedAnnual report
「Under these conditions, although the group's domestic operations were affected by requests to refrain from going out and other measures through the first half, foot traffic recovered following the lifting of the state of emergency declaration in the third quarter. As temperatures also fell, full-price sales of outerwear and other products performed well.」
Although the effects of requests to refrain from going out and other measures related to the infection continued through the first half, foot traffic recovered in the third quarter following the lifting of the state of emergency declaration, reducing the impact on domestic store sales from the previous quarter. However, the accounting assumption that the infection would continue to affect the market was maintained. - FY2022-Q2WorsenedAnnual report
「Store sales slowed in the second quarter because, in addition to the expansion of areas subject to the state of emergency declaration and the extension of its period amid the spread of the fifth wave of COVID-19, torrential rain and other adverse weather also had an impact, although」
The expansion and extension of the areas and periods covered by state of emergency declarations and other measures in connection with the fifth wave of COVID-19 became a factor slowing store sales. - FY2022-Q1MitigatedAnnual report
「Whereas all stores were closed in May of the previous year, 117 stores were closed as of 25 April this year, and the number of closed stores subsequently declined in stages. As a result, the impact on store sales was smaller than in the previous year.」
Closures and shorter operating hours continued in connection with the third state of emergency declaration, but fewer stores were closed than during the previous year's company-wide closures, reducing the impact on store sales. - FY2021WorsenedAnnual report
「The spread of COVID-19 had a significant impact on performance throughout the fiscal year.」
The impact of COVID-19 extended beyond individual quarters to the full fiscal year, resulting in the recognition of a ¥397 million loss from temporary store closures and a ¥197 million impairment loss, among other items. - FY2021-Q3RestatedAnnual report
「If the impact of COVID-19 continues, it could affect the group's business activities and ability to secure earnings, so the group will continue to monitor developments.」
The company continues to identify the possibility that the impact of the infection will continue, and its effects on business activities and the ability to secure earnings, as risks. - FY2021-Q2WorsenedAnnual report
「Previously, the company expected that it would be able to operate almost normally at least in June 2020, that performance would gradually recover thereafter and that the situation would be brought under control by the end of the second quarter at the latest. At the end of the second quarter, in light of the extent of the recovery in consumer demand following the lifting of the state of emergency declaration and the current status of the infection, the company expected performance to continue recovering gradually in regions where economic activity had resumed. However, on the assumption that performance would not recover to normal levels and that the impact of COVID-19 on the group would remain to some extent through the end of the current consolidated fiscal year, the company made accounting estimates concerning impairment accounting for fixed assets and the recoverability of deferred tax assets, among other matters.」
The assumption was changed from an expectation that the impact of the infection would be brought under control by the end of the second quarter to an assumption that the impact would remain to some extent through the end of the current consolidated fiscal year, extending the assumed risk period. - FY2021-Q1WorsenedAnnual report
「In addition, the spread of COVID-19 has led to temporary closures and shorter operating hours at commercial facilities and directly operated stores, affecting the performance of the group. Although operations are gradually resuming following the lifting of the state of emergency declaration, the group will continue to monitor developments, as future developments could affect its business activities and ability to secure earnings.」
The COVID-19 risk, previously presented as a future possibility, materialised through store closures and shorter operating hours, affecting performance. The company also recorded a 48.4% decline in revenue, an ordinary loss of ¥376 million and a ¥397 million loss from temporary store closures. - FY2020MaterialisedAnnual report
「Due to the impact of the globally prevalent COVID-19 pandemic, commercial facilities in Japan and overseas where the group operates stores are expected to implement shorter operating hours or temporary closures. This could reduce revenue and adversely affect the group's performance.」
The company identified shorter operating hours and closures at commercial facilities caused by the spread of COVID-19, declining sales and lower profitability as new business risks. The material subsequent events section states that some stores actually suspended operations and took other measures under the state of emergency declaration, confirming that the risks materialised.