Risk of higher costs and narrower margins due to foreign-exchange movements, and forward exchange contracts
First written in FY2016. 14 of 30 entries say "Mitigated", first in FY2017. Latest entry: 2026-11-13.
Yamaki moved to the "Worse" side of this theme in 2026, 7 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 29 of 59 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Gross profit declined due to lower revenue, persistently high raw material prices, and higher product costs resulting from the weaker yen. Gross profit was ¥2,716 million, down ¥422 million year on year, and the gross profit margin was 27.4%, down 1.7 percentage points from the same period of the previous year.」
The increase in product costs resulting from the yen’s depreciation appeared as a 1.7-percentage-point decline in the gross margin. Meanwhile, foreign-exchange gains amounted to ¥117 million, and the fair value of forward exchange contracts shifted from negative in the previous fiscal year to positive ¥13,793 thousand. - FY2026-H1RestatedAnnual report
「For dress shirts, the gross margin remained around the level of the previous year due to ongoing price negotiations with suppliers and a review of the method for forward exchange contracts, among other measures.」
The company explains that it continued price negotiations and reviewed its method for forward exchange contracts, with the gross margin remaining around the level of the previous year. - FY2025MitigatedAnnual report
「Higher selling prices resulting from delivery-price negotiations and lower cost of sales resulting from a review of the method for forward exchange contracts brought gross profit to ¥3,138 million, a ¥71 million decrease in profit from the same period of the previous year, while the gross margin improved by 1.1 percentage points year on year to 29.1%.」
The company responded to higher costs resulting from the yen’s depreciation and other factors by reviewing its method for forward exchange contracts and negotiating delivery prices, improving the gross margin by 1.1 percentage points year on year. - FY2025-H1MitigatedAnnual report
「Although the gross margin improved as a result of delivery-price negotiations conducted continuously since the previous fiscal year and a review of the method for forward exchange contracts, sales and gross profit fell below the same period of the previous year due to higher costs and insufficient orders.」
The company explains that the gross margin improved through delivery-price negotiations and a review of its method for forward exchange contracts. However, sales and gross profit fell below the same period of the previous year due to higher costs and insufficient orders. - FY2024MitigatedAnnual report
「To remedy this situation, during the current consolidated fiscal year the company reviewed its forward exchange contracts and revised transaction terms and retail prices, among other initiatives. As a result, the gross margin improved and the company achieved positive operating income.」
The company explains that the gross margin improved and operating income turned positive as a result of reviewing forward exchange contracts and revising transaction terms and retail prices. - FY2024-Q3MitigatedAnnual report
「For fall/winter 2023 products, some items struggled because of the lingering summer heat, but the results of delivery-price negotiations conducted continuously since the previous fiscal year and a review of the foreign-exchange hedging method improved the gross margin.」
The company explains that it continued delivery-price negotiations and reviewed its method for forward exchange contracts in response to the impact of foreign-exchange movements on costs and margins, resulting in an improved gross margin. - FY2024-Q2MitigatedAnnual report
「Gross profit exceeded the planned figure due to the results of delivery-price negotiations conducted continuously since the previous fiscal year and a review of the method used for forward exchange contracts.」
In response to higher purchasing costs and narrower margins resulting from the sharp depreciation of the yen against the dollar, the company reviewed its method for forward exchange contracts and conducted delivery-price negotiations, resulting in gross profit exceeding the planned figure. - FY2024-Q1MitigatedAnnual report
「The company revised delivery prices, raised retail prices, and executed forward exchange contracts flexibly, among other measures, beginning in the second half of the previous consolidated fiscal year.」
In response to higher costs and narrower margins resulting from the yen’s depreciation against the dollar, the company revised delivery prices and retail prices and executed forward exchange contracts flexibly. This indicates the implementation of the company’s stated response measures, rather than the elimination of foreign-exchange risk itself. - FY2023MaterialisedAnnual report
「However, because it is impossible to completely control cost increases themselves, the higher costs resulting from the yen’s depreciation against the dollar create risks including narrower margins.」
The increase in costs resulting from the sharp depreciation of the yen against the dollar actually pressured the gross margin. Reviews of forward exchange contracts and delivery prices and retail prices continue as response measures. - FY2023-Q3MaterialisedAnnual report
「As a result, although net sales remained strong at 120% of the year-earlier period, gross profit remained at 91% because higher raw material prices and the rapid weakening of the yen against the US dollar raised procurement costs. The Company will continue working to improve gross profit and the gross margin by reducing product costs, including through a review of raw and auxiliary materials, reviewing its foreign exchange forward contracts, negotiating higher delivery prices, and reviewing retail prices.」
The sharp depreciation of the yen against the dollar materialized as higher purchasing costs and a gross margin of 91% of the level in the same period of the previous year, putting pressure on margins. The company describes response measures including a review of its forward exchange contracts. - FY2023-Q2MaterialisedAnnual report
「However, due to the impact of soaring raw material prices and the rapid weakening of the yen against the US dollar, product costs have risen more than expected. As a result, although net sales remained strong at 123% of the year-earlier period, gross profit was 91% of the year-earlier period, making it difficult to secure both the amount and margin of gross profit.」
The sharp depreciation of the yen against the dollar pressured gross profit in both amount and margin through higher product costs, and foreign-exchange risk materialized as an actual narrowing of margins. - FY2023-Q1WorsenedAnnual report
「However, securing the initially projected gross margin has become difficult because product costs, including raw materials, have risen due to surging global energy resource prices and the sharp depreciation of the yen against the dollar.」
The sharp depreciation of the yen against the dollar affected margins through higher product costs, including raw materials, making it difficult to secure the gross margin. - FY2020Decrease in Foreign-Exchange GainAnnual report
「Foreign-exchange gains 108,496 56,846」
Foreign-exchange gains declined from ¥108.496 million in the previous fiscal year to ¥56.846 million in the current fiscal year. The hedging policy using forward exchange contracts and foreign-currency-denominated short-term borrowings remains unchanged. - FY2020-Q3Lower foreign exchange gainsAnnual report
「Foreign-exchange gains 91,860 55,907」
Foreign-exchange gains declined from ¥91.86 million in the same period of the previous year to ¥55.907 million in the cumulative period through the third quarter of the current fiscal year, but a foreign-exchange gain continued to be recorded. - FY2020-Q1WorsenedAnnual report
「Foreign-exchange gains 17,513 － Foreign-exchange losses － 13,130」
Foreign-exchange gains of ¥17.513 million in the same period of the previous year shifted to a foreign-exchange loss of ¥13.13 million in the first quarter of the current fiscal year, worsening the impact of foreign-exchange movements on earnings. - FY2019MitigatedAnnual report
「Foreign-exchange gains 63,522 108,496」
Foreign-exchange gains increased from ¥63.522 million in the previous fiscal year to ¥108.496 million in the current fiscal year. The hedging policy using forward exchange contracts also remains unchanged. - FY2019-Q3MitigatedAnnual report
「Foreign-exchange gains 67,908 91,860」
Foreign-exchange gains increased from ¥67.908 million in the same period of the previous year to ¥91.86 million in the cumulative period through the current quarter. This represents a continued improvement from the foreign-exchange loss in the same period of the previous year caused by the yen’s appreciation against the dollar. - FY2019-Q2MitigatedAnnual report
「Ordinary income was ¥132 million, down 17.1% year on year, mainly due to the recording of a foreign-exchange gain of ¥78 million resulting from the stronger dollar.」
A foreign-exchange gain of ¥78 million resulting from the stronger dollar was recorded. The improvement in deferred hedge gains and losses resulting from the yen’s depreciation against the dollar is also cited as a factor behind the increase in net assets. - FY2019-Q1Improvement in deferred hedge gains and lossesAnnual report
「Net assets at the end of the first quarter of the current consolidated fiscal year amounted to ¥7,097 million, an increase of ¥160 million from the end of the previous consolidated fiscal year, mainly due to the recording of quarterly net income attributable to owners of the parent and an improvement in deferred hedge gains and losses as the yen depreciated against the dollar.」
The improvement in deferred hedge gains and losses resulting from the yen’s depreciation against the dollar is cited as a factor behind the increase in net assets. - FY2018MitigatedAnnual report
「Ordinary income was ¥134 million, down 33.1% year on year, despite operating income halving, mainly because foreign-exchange gains and losses shifted from a loss in the previous fiscal year to a gain.」
Foreign-exchange gains and losses shifted from a loss in the previous fiscal year to a gain. While the policy on forward exchange contracts has continued, the deterioration in profit attributable to foreign exchange during the fiscal year was less severe than in the previous fiscal year. - FY2018-Q3MitigatedAnnual report
「Ordinary income was ¥125 million, up 37.4% year on year, as the foreign-exchange losses caused by the yen’s appreciation against the dollar in the same period of the previous year were eliminated. Quarterly net income attributable to owners of the parent, after deduction of income taxes and other taxes, was ¥116 million, a substantial 68.5% increase from the same period of the previous year.」
The foreign-exchange losses caused by the yen’s appreciation against the dollar in the same period of the previous year were eliminated, resulting in a 37.4% year-on-year increase in ordinary income. - FY2018-Q2MitigatedAnnual report
「Ordinary income was ¥159 million, up 54.3% year on year, as the foreign-exchange losses caused by the yen’s appreciation against the dollar in the same period of the previous year were eliminated.」
The foreign-exchange losses caused by the yen’s appreciation against the dollar in the same period of the previous year were eliminated in the current quarter, resulting in a 54.3% year-on-year increase in ordinary income. The income statement also shows a shift from a foreign-exchange loss of ¥193,597 thousand in the same period of the previous year to a foreign-exchange gain of ¥46,029 thousand in the current period. - FY2018-Q1MitigatedAnnual report
「Ordinary income was ¥317 million, up 49.8% year on year, as the foreign-exchange losses caused by the yen’s appreciation against the dollar in the same period of the previous year were eliminated.」
The company explains that the foreign-exchange losses caused by the yen’s appreciation against the dollar in the same period of the previous year were eliminated in the current quarter, resulting in higher ordinary income. - FY2017MitigatedAnnual report
「Ordinary income was ¥200 million, down 32.7% year on year, mainly because the foreign-exchange losses on foreign-currency-denominated assets incurred in the previous fiscal year declined and a gain arose from the reversal of advances received.」
Foreign-exchange losses declined from the previous fiscal year, falling in the consolidated income statement from ¥89,862 thousand to ¥17,673 thousand. The hedging policy using forward exchange contracts remains unchanged. - FY2017-Q3RestatedAnnual report
「Ordinary income was ¥91 million, down 80.5% year on year, mainly because substantial foreign-exchange losses arose on foreign-currency-denominated assets as the yen appreciated against the dollar through the second quarter.」
Foreign-exchange losses on foreign-currency-denominated assets due to the yen’s appreciation against the dollar continue to be cited as a factor behind the decline in ordinary income. - FY2017-Q2WorsenedAnnual report
「Ordinary income was ¥103 million, down 79.6% year on year, mainly because substantial foreign-exchange losses arose on foreign-currency-denominated assets as the yen appreciated against the dollar.」
Substantial foreign-exchange losses on foreign-currency-denominated assets arose due to the yen’s appreciation against the dollar, resulting in a 79.6% year-on-year decline in ordinary income. - FY2017-Q1WorsenedAnnual report
「Ordinary income was ¥211 million, down 73.5% year on year, mainly because foreign-exchange losses arose on foreign-currency-denominated assets as the yen appreciated against the dollar.」
Foreign-exchange losses on foreign-currency-denominated assets arose due to the yen’s appreciation against the dollar, resulting in a 73.5% year-on-year decline in ordinary income. - FY2016First statedAnnual report
「As the yen appreciated sharply against the dollar, particularly in the fourth quarter, the company incurred a foreign-exchange loss of ¥89 million, reversing the result in the previous consolidated fiscal year.」
The company states that foreign-exchange risk materialized as a foreign-exchange loss of ¥89 million during the fiscal year. It also describes the use of forward exchange contracts for purchases as a mitigation measure.