Deteriorating profitability at some factories due to insufficient orders
First written in FY2020-Q2. 11 of 21 entries say "Mitigated", first in FY2022-Q3. Latest entry: 2026-11-12.
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- FY2026MitigatedAnnual report
「Orders received amounted to ¥75,033 million, or 101.6% of the previous fiscal year, while the order backlog was ¥24,225 million, or 103.3%.」
Orders received and the order backlog increased from the previous fiscal year, and the risk of deteriorating profitability at certain factories due to the order shortfalls that had previously materialised remains contained. - FY2026-H1MitigatedAnnual report
「Sales volume increased 15.3% year on year to 27.36 million units, and the business expanded steadily against a backdrop of solid orders.」
Against the past risk of deteriorating profitability at certain factories due to order shortfalls, sales volume increased 15.3% year on year, indicating solid orders and business expansion. - FY2025MitigatedAnnual report
「Orders received (¥ million) 73,868 115.7 Order backlog (¥ million) 23,442 116.3」
Orders received amounted to ¥73,868 million and the order backlog to ¥23,442 million, both up from the previous fiscal year. The condition of a shrinking backlog and order shortfalls through the previous fiscal year has improved. - FY2024MitigatedAnnual report
「Orders received (¥ million) 63,865 110.1 Order backlog (¥ million) 20,153 122.4」
Orders received were 110.1% of the previous fiscal year, while the order backlog was ¥20,153 million, or 122.4% of the previous fiscal year, indicating an improvement from the previous fiscal year’s shrinking backlog and order shortfalls. - FY2024-Q3RestatedAnnual report
「Demand for apparel products continued to trend toward recovery, but additional orders remained weak because of the warm winter. In addition, as inventory across the distribution chain had not been cleared throughout the industry and unsettled weather also had an impact, customers increasingly placed orders cautiously while monitoring conditions to minimize the risks of stockouts and excess inventory.」
Despite the trend toward a recovery in demand, additional orders weakened due to the mild winter, unresolved channel inventories and unseasonable weather. The risk of order shortfalls continues, but no new deterioration in profitability at certain factories has been reported. - FY2024-Q2RestatedAnnual report
「Demand for apparel products continued to trend toward recovery. In addition, by working to further improve productivity and quality at production sites and developing a production system capable of responding flexibly to customer needs regarding production lots, delivery times and costs, we were able to maintain solid orders.」
The trend toward a recovery in demand and the development of a flexible production system continued to indicate that deteriorating profitability at certain factories due to order shortfalls remained contained. - FY2024-Q1MitigatedAnnual report
「Apparel demand also remained firm.」「Orders received progressed as expected.」
Apparel demand remained firm, and orders received were reported to be in line with expectations. The risk of deteriorating profitability at certain factories due to sluggish demand and a shrinking order backlog, noted in the previous fiscal year, remained contained during the quarter. - FY2023WorsenedAnnual report
「Orders received (¥ million) 58,019 100.2 Order backlog (¥ million) 16,464 77.6」
Full-year orders received were 100.2% of the previous fiscal year, while the order backlog was ¥16,464 million, or 77.6% of the previous fiscal year, quantitatively indicating a reduction in the backlog. - FY2023-Q1RestatedAnnual report
「In addition to the emergence of signs of a recovery in demand for apparel products, the Group's strength in having a diverse and flexible production network was demonstrated in response to customer needs arising from concerns over the prolonged impact of COVID-19 and geopolitical risks, and orders and sales remained generally strong.」
Compared with the previous sluggish demand and order shortfalls, signs of a recovery in demand and continued generally solid orders and sales have emerged, indicating that the impact of order shortfalls remains contained. - FY2022MitigatedAnnual report
「During the current consolidated fiscal year, the order backlog increased significantly. The main reason was that demand for apparel products, which had declined as the spread of COVID-19 continued, began to recover for some items.」
Against the risk of insufficient orders, orders received totaled ¥57,890 million and the order backlog was ¥21,223 million, as demand for some items recovered. The order backlog increased 47.5% year on year. - FY2022-Q3MitigatedAnnual report
「During the cumulative third-quarter period under review, the order backlog increased significantly to ¥19,778 million, up 46.1% year on year, due in part to some items entering a demand recovery trend.」
Following the insufficient orders that had continued through the previous quarter, the order backlog increased 46.1% year on year against a backdrop of recovering demand for some items. - FY2022-Q2WorsenedAnnual report
「However, the prolonged impact of COVID-19 made a decline in demand unavoidable. Although signs of recovery in some areas began to emerge, conditions varied by item and customer, and the Group continues to face difficult order conditions.」
Weak demand and difficult order conditions continued and were described as contributing to weak performance in the second quarter under review. - FY2021-Q3RestatedAnnual report
「Under these circumstances, the Group's sales remained roughly at the level of the same period of the previous year. Although the ongoing impact of the spread of COVID-19 caused demand in the apparel market and orders for existing products to weaken, production of cloth masks during the first half provided support.」
The decline in demand in the apparel market and weak orders for existing products continue to be described. It is explained that sales were maintained at roughly the level of the same period of the previous year through the production of cloth masks. - FY2021-Q2RestatedAnnual report
「Although the sharp decline in demand caused by the spread of COVID-19 led to excess inventory in the apparel market and was a factor behind weak orders for existing products, sales were offset by the production of cloth masks and other products.」
Weak orders for existing products continue to be described against a backdrop of the sharp decline in demand caused by the spread of COVID-19 and excess inventory in the apparel market. - FY2021-Q1WorsenedAnnual report
「During the cumulative first-quarter period under review, the order backlog declined significantly to ¥13,324 million, down 36.5% year on year, due to the impact of the spread of COVID-19.」
Against a backdrop of weaker demand due to COVID-19, the order backlog declined significantly to ¥13,324 million, down 36.5% year on year. - FY2020WorsenedAnnual report
「During the current consolidated fiscal year, the order backlog declined significantly because demand decreased as the spread of COVID-19 continued.」
The order backlog was ¥14,545 million, or 65.7% of the previous fiscal year's level, quantitatively demonstrating the impact of insufficient orders against a backdrop of weaker demand due to COVID-19. - FY2020-Q2MaterialisedAnnual report
「Profit declined despite efforts to improve productivity and reduce fixed costs, due in part to deteriorating profitability at some factories caused by insufficient orders.」
The deterioration in profitability at some factories caused by insufficient orders, which led to a decline in profit, was described separately for the first time.