Notice Regarding the Recognition of Extraordinary Losses Associated with Structural Reforms and the Revision of Full-Year Consolidated Earnings Forecast
YAMAKI CO.,LTD. and its consolidated subsidiary 山喜ソーイング株式会社
The Shinshu Factory of 山喜ソーイング株式会社, dress shirts, products outside the business-wear segment, and old inventory that does not conform to product and sales strategies from the next fiscal year onward
The Company determined that certain products were unlikely to be sold through ordinary channels in the future, based on changes in the market environment and consumer behavior, sales performance and product life cycles, and inventory efficiency and appropriate inventory levels. The measures also reflect the impact of declining demand for dress shirts, consumers' preference for saving, reduced sales floor space at business partners, and sales price increases prompted by soaring raw material costs.
The Company expects to recognize approximately ¥618 million in extraordinary losses for the fiscal year ending March 2026, representing business structural improvement costs relating to old inventory and other items, and approximately ¥36 million in extraordinary losses for factory closure-related costs and other expenses associated with the Shinshu Factory.
The fiscal year ending March 2026 consolidated financial statements
The full-year consolidated earnings forecast has been revised to net sales of ¥9,900 million, an operating loss of ¥300 million, an ordinary loss of ¥210 million, a net loss attributable to owners of the parent of ¥960 million, and a loss per share of ¥67.75.
Company response
The Shinshu Factory will be closed. For products that do not conform to product and sales strategies from the next fiscal year onward, the Company will no longer manufacture or sell them under ordinary trading terms.
As part of the new medium-term management plan beginning in fiscal 2026, the Company will narrow its sales strategy to the business-wear segment and proceed with business restructuring, including withdrawal from certain markets for products outside that segment. It will also optimize its inventory structure.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of Extraordinary Losses Associated with Structural Reforms and the Revision of Full-Year Consolidated Earnings Forecast |
| Date of occurrence | 8 May 2026 (the date on which the Board of Directors resolved to recognize extraordinary losses in connection with the business structural reforms; the closure date of the Shinshu Factory is Not disclosed) |
| Subject Entity | YAMAKI CO.,LTD. and its consolidated subsidiary 山喜ソーイング株式会社 |
| Target Locations / Products | The Shinshu Factory of 山喜ソーイング株式会社, dress shirts, products outside the business-wear segment, and old inventory that does not conform to product and sales strategies from the next fiscal year onward |
| Cause | The Company determined that certain products were unlikely to be sold through ordinary channels in the future, based on changes in the market environment and consumer behavior, sales performance and product life cycles, and inventory efficiency and appropriate inventory levels. The measures also reflect the impact of declining demand for dress shirts, consumers' preference for saving, reduced sales floor space at business partners, and sales price increases prompted by soaring raw material costs. |
| Amount of Impact on Business Performance | The Company expects to recognize approximately ¥618 million in extraordinary losses for the fiscal year ending March 2026, representing business structural improvement costs relating to old inventory and other items, and approximately ¥36 million in extraordinary losses for factory closure-related costs and other expenses associated with the Shinshu Factory. |
| Accounting period in which recognized | The fiscal year ending March 2026 consolidated financial statements |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast has been revised to net sales of ¥9,900 million, an operating loss of ¥300 million, an ordinary loss of ¥210 million, a net loss attributable to owners of the parent of ¥960 million, and a loss per share of ¥67.75. |
| Suspended operations | The Shinshu Factory will be closed. For products that do not conform to product and sales strategies from the next fiscal year onward, the Company will no longer manufacture or sell them under ordinary trading terms. |
| Outlook | As part of the new medium-term management plan beginning in fiscal 2026, the Company will narrow its sales strategy to the business-wear segment and proceed with business restructuring, including withdrawal from certain markets for products outside that segment. It will also optimize its inventory structure. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The measures are intended to narrow the sales strategy to the business-wear segment, review the product strategy based on sales performance and product life cycles, optimize old inventory, and close the Shinshu Factory. The earnings forecast was revised due to the recognition of extraordinary losses, in addition to lower-than-expected orders and sales volumes resulting from declining demand for dress shirts, consumers' preference for saving, reduced sales floor space at business partners, and price increases.