Inventory and margin risk from demand-forecast errors
First written in FY2016. 7 of 10 entries say "Mitigated", first in FY2017. Latest entry: FY2026.
The whole theme swung hardest in 2026: 23 of 42 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In the current consolidated fiscal year, there was a slight variance from the demand forecast described above under “3. Business and Other Risks,” but it had no significant impact,」
Although there was a slight variance from the demand forecast, it did not have a significant impact. The inventory valuation loss also declined from ¥457.671 million in the previous year to ¥100.949 million. - FY2025MaterialisedAnnual report
「Operating income was ¥1,446 million, down 44.6% year on year, mainly because the valuation of certain products was reviewed.」
In connection with the review of demand forecasts and salability, the review of product valuations became a factor behind the decline in operating income. The inventory valuation loss was ¥457.671 million, up from ¥302.107 million in the previous year. - FY2024MitigatedAnnual report
「In the current consolidated fiscal year, there was a slight variance from the demand forecast described above under “3. Business and Other Risks,” but it had no significant impact,」
The company said that although there was a slight variance from the demand forecast, it did not have a significant impact on inventory or margins. - FY2023MitigatedAnnual report
「In the current consolidated fiscal year, there was a slight variance from the demand forecast described above under “3. Business and Other Risks,” but it had no significant impact,」
The company said that although there was a slight variance from the demand forecast, it did not have a significant impact on inventory or margins. - FY2021MitigatedAnnual report
「In the current consolidated fiscal year, the spread of the novel coronavirus disease caused a slight variance from the demand forecast described above under “2. Business and Other Risks,” but it had no significant impact,」
The company said that although there was a slight variance from the demand forecast, it did not have a significant impact on inventory or margins. - FY2020MitigatedAnnual report
「In the current consolidated fiscal year, there was a slight variance from the demand forecast described above under “2. Business and Other Risks,” but it had no significant impact,」
The company said that there was a slight variance from the demand forecast, but it did not have a significant impact. - FY2019MitigatedAnnual report
「In the current consolidated fiscal year, there was no significant variance from the demand forecast described above under “2. Business and Other Risks,”」
The company states that no significant variance arose during the current year in relation to inventory and margin risks arising from errors in demand forecasts. - FY2018MaterialisedAnnual report
「During the spring/summer 2018 selling season, inaccurate inventory forecasts resulted in stockouts, causing significant inconvenience to business partners and users.」
Errors in demand and inventory forecasts actually resulted in stockouts, affecting business partners and users. - FY2017MitigatedAnnual report
「In the current consolidated fiscal year, there was no significant variance from the demand forecast described above under “4. Business and Other Risks,”」
The company states that no significant variance arose during the current year in relation to inventory and margin risks arising from errors in demand forecasts. - FY2016First statedAnnual report
「We produce to forecast demand. Production volumes are determined after taking into account past performance and market trends, but forecasts may prove inaccurate due to sudden changes in market conditions, adverse weather and other factors.」
Because production is based on demand forecasts, increases in inventory and clearance sales caused by market conditions and weather are identified as risks. For the current period, the company states that there was no significant variance from its demand forecast.