Significant Impact of COVID-19 on Store Operations, Business Performance and Financial Condition
First written in FY2020. 4 of 14 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「The legal classification of COVID-19 was changed, and economic activity is becoming more vibrant as foot traffic recovers and inbound tourism rebounds following the lifting of entry restrictions.」
It states that the impact on previous store operations and business results has receded following the change in the legal classification of COVID-19, the recovery in foot traffic and the lifting of entry restrictions. - FY2024-Q1MitigatedAnnual report
「The legal classification of COVID-19 was changed, and economic activity is gradually becoming more vibrant as foot traffic recovers and inbound tourism rebounds following the lifting of entry restrictions.」
It states that the impact on economic activity has receded following the change in COVID-19’s legal classification, the recovery in foot traffic and the rebound in inbound tourism resulting from the lifting of entry restrictions. - FY2023MitigatedAnnual report
「The number of COVID-19 cases has declined, restrictions on movement have been lifted, and economic activity is moving toward normalisation. However, if infections spread again, the Group’s revenue and operating income may decline because of lower customer numbers and increased expenses for enhanced health and safety measures.」
It states that the previously apparent effects had receded because of declining case numbers, the lifting of restrictions on movement and the normalisation of economic activity, while risks from a renewed spread remain. - FY2023-Q3Economic normalisation coexisting with regional differencesAnnual report
「During the nine-month period of the current fiscal year, the global economy moved gradually toward normalisation as economic activity recovered with the lifting or easing of restrictions on movement and the recovery in foot traffic, although COVID-19 cases increased during the summer before entering a downward trend.」
It describes declining case numbers, the lifting or easing of restrictions on movement, and the normalisation of economic activity resulting from the recovery in foot traffic, while explaining that lockdowns and stagnant economic activity continued in some overseas regions. - FY2023-Q2RestatedAnnual report
「With regard to COVID-19, countries and regions have diverged, with some progressing with regulatory easing in consideration of the normalisation of economic activity and moving toward a degree of recovery, while others have imposed lockdowns as infections have increased, causing economic activity to stagnate.」
It states that regional differences in restrictions and recovery continued to exist during the pandemic. - FY2023-Q1Continuing regional differences in restrictions and recoveryAnnual report
「Although the number of COVID-19 cases remained high, countries and regions have diverged, with some prioritising the resumption of previous economic activity and lifting restrictions on movement, while others have introduced various movement restrictions and countermeasures in response to rising case numbers, resulting in stalled economic activity.」
It describes a situation in which regions have diverged between those lifting restrictions on movement and those where economic activity has stagnated while case numbers remain high. - FY2022Recovery coexisting with variant riskAnnual report
「Although vaccination against COVID-19 progressed and the global economy was beginning to return to its previous state, the situation remained uncertain, with the spread of more infectious variants becoming a new source of concern.」
It describes the economic recovery resulting from vaccination, while continuing to cite the risk of infectious disease from the spread of variants and uncertainty about the outlook. - FY2022-Q3WorsenedAnnual report
「The Group’s revenue recovered from the previous fiscal year during the nine-month period of the current fiscal year, and it recorded net income attributable to owners of the parent of ¥134 million. However, the new Omicron variant is beginning to spread again, conditions remain uncertain and subject to fluctuations, and as of the end of December 2021 there were circumstances giving rise to significant doubt about the going-concern assumption.」
Although revenue recovered and quarterly net income was recorded, circumstances giving rise to significant doubt about the going-concern assumption remain because of the renewed spread of the Omicron variant. - FY2022-Q2RestatedAnnual report
「In Japan, there was an impact from shortened operating hours resulting from the state of emergency and priority preventive measures from April 2021, while overseas there was also an impact from the prolonged stagnation of economic activity in each country. Although revenue recovered from the previous fiscal year during the six-month period of the current fiscal year and net income attributable to owners of the parent of ¥102 million was recorded, the outlook remains uncertain, with conditions continuing to fluctuate, and as of the end of September 2021 there were circumstances giving rise to significant doubt about the going-concern assumption.」
While revenue recovered and quarterly net income of ¥102 million was recorded, the impact of shortened operating hours and the stagnation of economic activity overseas, as well as significant doubt about the going-concern assumption, remain. - FY2022-Q1MaterialisedAnnual report
「In Japan, we were unable to offset the impact of shortened operating hours resulting from the state of emergency and priority preventive measures from April 2021, while overseas we were also unable to offset the impact of the prolonged stagnation of economic activity in each country. Although revenue recovered from the previous fiscal year during the nine-month period of the current fiscal year, the Group recorded a net loss attributable to owners of the parent of ¥72 million,」
Although revenue recovered from the same period of the previous year, the impact of shortened operating hours in Japan and the stagnation of economic activity overseas could not be offset, and a quarterly net loss attributable to owners of the parent of ¥72 million was recorded. - FY2021-Q3MaterialisedAnnual report
「In Japan, we were unable to offset the impact of store closures from April to May 2020, while overseas we were unable to offset the impact of the prolonged stagnation of economic activity in each country. Revenue was ¥12,010 million, down 46.1% year on year. In terms of profit, we implemented various cost-reduction and management-efficiency measures, including controlling store staff shifts, reducing travel and business-trip expenses through the introduction of remote work, simplifying head-office functions, and digitising communication tools and business processes. However, the substantial decline in revenue in both the domestic and overseas store operations businesses resulted in an operating loss of ¥931 million, compared with operating income of ¥704 million in the same period of the previous year.」
The Group was unable to offset the prolonged impact of domestic store closures caused by infectious disease and the stagnation of economic activity overseas. Revenue was down 46.1% year on year, and operating loss was ¥931 million. - FY2021-Q2MaterialisedAnnual report
「In both the domestic and overseas store operations businesses, we focused on providing products through methods that do not involve face-to-face services, such as takeout and delivery. However, we were unable to offset the impact of store closures in Japan during the first quarter and the prolonged stagnation of economic activity in countries overseas. Revenue was ¥7,072 million, down 52.1% year on year.」
Although it focused on non-face-to-face offerings, it was unable to offset the impact of infectious disease. Revenue was down 52.1% year on year, operating loss was ¥910 million and net loss attributable to owners of the parent was ¥1,922 million. - FY2021-Q1MaterialisedAnnual report
「As a result, the Group’s performance for the three-month period of the fiscal year ended March 2021 was significantly affected by the spread of COVID-19 in both the domestic and overseas store operations businesses. While many stores were forced to close or shorten operating hours, particularly in the overseas store operations business, we focused on providing products through methods that do not involve face-to-face services, such as takeout and delivery, but were unable to offset the impact. Revenue was ¥3,343 million, down 53.7% year on year.」
Store closures and shortened operating hours caused by infectious disease were reflected in business results, with company-wide revenue down 53.7% year on year. The response through non-face-to-face offerings was insufficient to offset the impact. - FY2020First statedAnnual report
「The global impact of COVID-19 has created an uncertain outlook for the operating environment of each of our Group’s businesses. In response, the Group has made the safety and health of customers and employees its top priority and, in accordance with instructions and guidelines issued by the governments and local authorities of each country, has temporarily closed stores or shortened operating hours and implemented hygiene measures at stores and offices. If the situation continues for an extended period, or if further infections spread or develop into a pandemic, store closures due to governments shutting down economic activity and a worldwide decline in personal consumption are expected, which may have a material impact on the Group’s revenue, operating income and other business results, as well as its financial position.」
It explicitly identified COVID-19 as an independent risk for the first time, stating that temporary store closures and shortened operating hours had already occurred and that prolonged conditions or further spread of infections could materially affect business results and the financial position.