Enhancing inventory management and reducing inventories

「Inventory valuation loss of ¥617.990 million arising from YAMAKI CO.,LTD.'s business structural reform」

「Products 3,120.978 3,094.207」

「Products 3,120.752 3,120.978」

「Cash provided by operating activities was ¥251 million (compared with ¥847 million provided in the same period of the previous year). This was mainly due to a decrease in inventories.」

「Cash provided by operating activities was ¥695 million (compared with ¥31 million provided in the same period of the previous year). This was mainly due to a decrease in inventories.」

「Under these operating conditions, the Group's performance is recovering, as sales prices have been reviewed, inventory sales have been promoted, and sales at customers' stores have also been trending upward.」

「Total assets at the end of the second quarter of the consolidated fiscal year were ¥12,157 million, down ¥122 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease in products and other factors.」

「In the Manufacturing segment, because purchasing was controlled under the inventory reduction policy, revenue was ¥600 million, down 13.3% year on year, and segment profit was ¥20 million, down 16.0% year on year.」

「An inventory write-down of ¥84,122 thousand was recorded.」

「Finished goods 3,613,112 3,512,457」

「We will further reduce interest-bearing debt by continuing to reduce finished goods inventories through restrained purchasing and increased inventory sales. Finished goods 3,613,112 3,603,505」

「We will further reduce interest-bearing debt by continuing to reduce finished goods inventories through restrained purchasing and increased inventory sales.」

「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥12,477 million, down ¥760 million from the end of the previous consolidated fiscal year. This was due mainly to a decrease in finished goods inventories resulting from restrained purchasing and increased inventory sales. Finished goods 4,456,970 3,534,457」

「Total assets at the end of the second quarter of the current consolidated fiscal year were ¥12,539 million, down ¥698 million from the end of the previous consolidated fiscal year. This was due mainly to a decrease in finished goods inventories resulting from restrained purchasing and increased inventory sales.」

「We will maintain close relationships with our financial institutions and work to reduce interest-bearing debt by reducing finished goods inventories through restrained purchasing and increased inventory sales as part of our cash flow improvement measures. Finished goods 4,456,970 3,958,633」

「Meanwhile, as a measure against the substantial decline in revenue, the Sales division strengthened the withdrawal from unprofitable businesses, including closing directly operated stores and transferring shares in subsidiaries, as well as restraining purchases and selling inventory during the period. Finished goods inventories decreased by ¥438 million from the previous fiscal year.」

「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥13,403 million, down ¥1,541 million from the end of the previous consolidated fiscal year. This was due mainly to decreases in notes and accounts receivable resulting from the factors described above and a decrease in finished goods inventories due to restrained purchasing. Finished goods 4,895,121 4,532,932」

「To strengthen our financial base until the COVID-19 pandemic subsides, we will work to reduce interest-bearing debt by reducing inventories, increase cash and deposits to improve liquidity on hand, and cut expenses.」

「Cash flows from operating activities resulted in an outflow of ¥389 million due to increases in trade receivables and inventories. Because an increase in inventories not only reduces cash inflows from operating activities but also directly leads to an increase in interest-bearing debt, we recognise inventory management as a key management issue in strengthening our financial base. We will manage production according to in-store sell-through and work to reduce interest-bearing debt.」

「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥15,548 million, up ¥1,090 million from the end of the previous consolidated fiscal year. This was due to a temporary increase in finished goods inventories from the arrival of spring products, in addition to increases in summer and autumn/winter product inventories, as well as an increase in other current assets, including accounts receivable arising from factoring.」

「Total assets at the end of the second quarter of the current consolidated fiscal year were ¥15,029 million, up ¥571 million from the end of the previous consolidated fiscal year. This was due mainly to increases in notes and accounts receivable as the introduction of autumn products progressed, and an increase in finished goods inventories because additional orders failed to grow amid difficult summer product sales.」

「Finished goods 4,345,226 4,150,130」

「In the first half, Domestic Sales volumes remained sluggish due not only to lower sales from directly operated stores and casual concept stores that were exited in the previous fiscal year, and lower sales to department stores, but also to store closures at customers caused by natural disasters such as the typhoons and earthquakes that occurred frequently in the second quarter, and the resulting decline in consumer sentiment. From the second half onward, sales of autumn and winter products also remained weak because of the mild winter and other factors, increasing in-store inventories and affecting the delay in our introduction of spring products and the initial introduction of summer products compared with the same period of the previous year.」

「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥14,774 million, down ¥182 million from the end of the previous consolidated fiscal year. This was due mainly to a decrease in trade receivables and finished goods inventories resulting from seasonal fluctuations in sales, despite an increase in accounts receivable and other items arising from factoring. Finished goods 4,245,766 4,038,398」

「Finished goods 4,245,766 4,029,613」

「Finished goods 4,245,766 3,735,501」

「In the Domestic Sales segment, assets decreased by ¥550 million and liabilities decreased by ¥211 million from the end of the previous fiscal year, mainly because of the reduction of merchandise inventories and other factors.」

「Finished goods 4,744,325 4,244,580」

「This was due mainly to decreases in finished goods inventories and trade receivables.」

「Finished goods 4,744,325 3,941,119」

「In the apparel industry in which our group operates, headwinds from weather conditions continued, including severe lingering summer heat, a mild winter and the late arrival of spring, resulting in serious weakness in in-store sell-through and an increase in inventories.」

「This was due mainly to an increase in working capital borrowings associated with the increase in inventories.」

「This was due mainly to a decrease in quarterly net income before income taxes and other adjustments and an increase in inventories.」

「From the perspective of strengthening our financial position and establishing a more robust management control system, we have worked to strengthen our inventory management system. The core system introduced in October 2013 enabled us to collect data for individual items across a broader range. By the end of the second quarter of the fiscal year, data covering the preceding 2 years had been accumulated, and a management system had been established to assess inventory movements at an early stage.」