Concentration of management resources on shirts and withdrawal from unprofitable businesses and stores

「Specifically, the company will narrow its business scope to businesswear, create broader shirt offerings within that area, promote planning and development centered on originality, and seek to develop sales floors under its own direction.」

「タイ山喜 is transitioning into an overseas sales and marketing base and actively developing new business partners in European, US, and Asian markets. By strengthening its order-taking and sales functions, it is working to expand its earnings base and restore performance. ラオ山喜 is using the Technical Intern Training Program to improve the technical capabilities of local employees through training at domestic factories. Going forward, it will work to strengthen external orders and improve production efficiency, with the aim of increasing processing revenue and expanding earnings.」

「Thai Yamaki closed its production lines in December 2024. It will continue working to restore performance as an overseas sales and sales base. Lao Yamaki will take over production of Thai Yamaki's external orders and seek to expand earnings by securing stable orders for higher-value-added products.」

「Going forward, タイヤマキカンパニーリミテッド will be reorganized around sales operations aimed at strengthening overseas sales, primarily in the ASEAN region, and production management operations, while working to improve profitability through integrated domestic and overseas sales and production operations.」

「Selling, general and administrative expenses declined by ¥174 million in total personnel costs as a result of structural reforms implemented during the previous consolidated fiscal year, including reductions in sales staff at unprofitable stores, personnel cost reductions associated with consolidating distribution centers, and early retirements.」

「At the Kagoshima factory, which has remained in the red since the previous consolidated fiscal year, the company will close the unprofitable production line for ready-made dress shirts and, from April 2022, focus production on 2 items: high-productivity custom shirts and shirt jackets. In conjunction with this, the company will reduce personnel and expenses as part of establishing an operating structure appropriate to the scale of production, and will work to improve profitability and return the factory to profitability.」

「During the previous consolidated fiscal year, the company reduced personnel at domestic factories and closed production lines at 上海山喜 in China in an effort to improve the supply-demand balance. However, it was forced to operate under difficult conditions due to the impact of COVID-19 lockdowns in ASEAN countries and delays in product delivery caused by a shortage of containers. The company is reviewing its production structure further at its own factories in Japan and overseas to improve profitability.」

「To address the substantial decline in revenue, the sales division withdrew from unprofitable businesses, including by closing directly operated stores and transferring shares in subsidiaries, while strengthening efforts to curb procurement during the fiscal year and sell inventory. Product inventories declined by ¥438 million from the previous fiscal year. The production division also reduced variable costs through production adjustments at factories and cut fixed costs such as personnel expenses, while reviewing production lines at its own factories in Japan and overseas.」

「Under these conditions, the company worked to reduce expenses thoroughly across the board, including curbing production and procurement, closing production lines at its own factories, withdrawing from unprofitable operations by closing directly operated stores and other measures, negotiating lower rents for leased properties, reducing logistics costs, and reviewing personnel expenses. However, these efforts did not offset the impact of lower sales, resulting in an operating loss.」

「・Concentration of management resources on shirts ・Review of the overall casualwear business and withdrawal from unprofitable casual concepts ・Closure of unprofitable directly operated stores」

「In the group, sales volume declined substantially due to the decline in sales from directly operated stores and casual concepts exited during the previous fiscal year, lower sales to department stores, the closure of customer stores due to natural disasters such as typhoons and earthquakes that occurred frequently in the second quarter, and the resulting deterioration in consumer sentiment.」

「Under these operating conditions, our group’s domestic sales volumes decreased year on year. In addition to the decline in sales from directly operated stores and casual concession counters that were closed during the previous fiscal year, sales to department stores declined, while stores operated by customers were closed because of natural disasters, including the typhoons and earthquakes that occurred frequently in the second quarter. Consumer sentiment also weakened as a result.」

「Against this backdrop, the Group's domestic sales volume declined from the same period of the previous year, owing to lower sales from directly operated stores and casual concession operations withdrawn during the previous fiscal year, as well as lower sales to department stores and an increase in returns.」

「・Concentration of management resources on shirts ・Review of the overall casualwear business and withdrawal from unprofitable casual concepts ・Closure of unprofitable directly operated stores」

「Under these operating conditions, although domestic sales declined due to the complete withdrawal from unprofitable casual concessions and the closure of some directly operated stores, operating profit for the third quarter of the consolidated fiscal year, from October to December, improved by ¥91 million from the same period of the previous year due to the effects of expense reductions and the early start of sales of autumn/winter products.」

「Concentration of management resources on shirts ・Review of the overall casualwear business and withdrawal from unprofitable casual concepts ・Closure of unprofitable directly operated stores」