Sharp decline in demand, production stoppages and supply chain disruptions caused by COVID-19
First written in FY2020. 7 of 15 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2020: 102 of 175 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「As economic and social activity normalised in Japan, employment and income conditions remained firm alongside improving corporate earnings, and the economy was on a gradual recovery path. However, uncertainty about the outlook continued due to concerns about downside risks arising from rising prices and the global economy.」
The disclosures indicated that economic and social activity had normalised and corporate earnings had improved, while the impact of the sharp decline in demand and activity restrictions caused by COVID-19 had eased from the previous fiscal year. However, new uncertainties, including rising prices, remained. - FY2024-Q2MitigatedAnnual report
「Although the Japanese economy was recovering as the pandemic subsided and corporate performance improved, consumer spending lacked strength due to surging resource and energy prices and rising prices. Uncertainty continued to surround the economic recovery, and the situation remained difficult to predict.」
The end of the pandemic and a trend toward recovery in corporate performance were reported, and the impact of the sharp decline in demand and activity restrictions caused by COVID-19 had eased from the previous fiscal year. However, weak consumer spending due to rising prices and other factors remained. - FY2024-Q1MitigatedAnnual report
「Against a backdrop of the normalization of social and economic activity, demand for apparel continued to remain firm.」
Economic and social activity normalised and apparel demand remained firm, while the impact of the sharp decline in demand and activity restrictions caused by COVID-19 was reported to have eased from the previous fiscal year. - FY2023MitigatedAnnual report
「During the current consolidated fiscal year, as restrictions on economic and social activity caused by the pandemic were lifted worldwide and economic activity was expected to show signs of recovery, consumer sentiment in the apparel industry also improved as the industry entered a phase of living with COVID-19, and demand for apparel products has been recovering.」
The lifting of restrictions on economic and social activity caused by the pandemic and the transition to living with COVID-19, together with a trend toward demand recovery, were reported. However, the disclosures do not state that logistics disruption and the impact on factory operations have been fully resolved. - FY2023-Q3RestatedAnnual report
「The Group remained in a difficult situation due to the impact of COVID-19, including global logistics disruptions and associated constraints on material supplies, temporary operating restrictions and shutdowns at factories, and lower factory utilisation.」
The disclosures continue to cite the impact of COVID-19 on logistics, materials supply and factory operations. - FY2023-Q2RestatedAnnual report
「The Group remained in a difficult situation due to the impact of COVID-19, including global logistics disruptions and associated constraints on material supplies, temporary operating restrictions and shutdowns at factories, and lower factory utilisation.」
The disclosures continue to cite logistics disruption, constraints on materials supply, factory operating restrictions and shutdowns, and lower utilisation rates due to COVID-19. - FY2023-Q1RestatedAnnual report
「The Group remained in a difficult situation due to the impact of COVID-19, including global logistics disruptions and associated constraints on material supplies, temporary operating restrictions and shutdowns at factories, and lower factory utilisation.」
The disclosures continue to cite logistics disruption, constraints on materials supply, factory operating restrictions and shutdowns, and lower utilisation rates due to COVID-19. - FY2022WorsenedAnnual report
「The group continued to face difficult conditions due to COVID-19, including global logistics disruption and resulting constraints on the supply of materials, temporary operating restrictions and shutdowns at factories, and lower factory utilisation rates.」
The impact of COVID-19 extended beyond demand to materials supply, logistics and factory operations, and difficult conditions continued throughout the fiscal year. For accounting purposes, it is assumed that the impact will continue through March 2023. - FY2022-Q3RestatedAnnual report
「The prolonged impact of COVID-19 forced the group to operate under difficult conditions, including sluggish demand, operating restrictions at certain factories, higher costs due to surging raw material prices driven by higher crude oil prices and other factors, and worldwide logistics congestion. A full-scale recovery in performance was not achieved.」
The demand, supply and logistics impacts of COVID-19 have continued. At the same time, the disclosures also note the lifting of operating restrictions at certain factories and signs of a recovery in demand, so the situation has been reaffirmed overall as an ongoing risk. - FY2022-Q2WorsenedAnnual report
「Regarding production conditions, in addition to the temporary shutdown of some factories for a short period at the direction of local governments, production bases in Vietnam, a key production region, were forced to reduce operating hours and lower utilization rates due to restrictions on the number of people in factories following the spread of COVID-19.」
COVID-19 resulted in shutdowns at certain factories and shorter operating hours and lower utilisation rates at the Vietnam facilities, with supply-side effects continuing in addition to demand-side effects. - FY2022-Q1RestatedAnnual report
「Difficult conditions continued, including temporary factory shutdowns caused by the spread of COVID-19 in emerging markets and political upheaval in Myanmar.」
The impact of COVID-19 extended to factory operations in emerging markets, and difficult conditions continued on both the demand and supply sides. - FY2021-Q3RestatedAnnual report
「Although the spread of COVID-19 continued to reduce demand and depress orders for existing products in the apparel market, production of fabric masks during the first half provided support, keeping results broadly at the previous year’s level.」
While the decline in demand and sluggish orders for existing products due to the spread of COVID-19 have continued, the disclosures describe offsetting effects from fabric mask production. - FY2021-Q2RestatedAnnual report
「Under these circumstances, within the group, the sharp decline in demand caused by the spread of COVID-19 led to excess inventories in the apparel market and sluggish orders for existing products, but this was offset by the production of fabric masks and other products.」
The sharp decline in demand, excess inventories and sluggish orders for existing products caused by COVID-19 have continued. The disclosures also describe offsetting effects from the production of fabric masks and other products. - FY2021-Q1MaterialisedAnnual report
「Meanwhile, although certain factories were forced to suspend operations following orders from local governments to close, the decline in production of casual and workwear was minimised, while fabric masks contributed to higher sales.」
In connection with COVID-19, certain factories actually suspended operations following orders from local governments to close. In response to lower production of existing products, the disclosures describe limiting the decline in casual and workwear production and the contribution of fabric masks to sales. - FY2020First statedAnnual report
「If an infectious disease such as COVID-19 spreads globally, store closures due to restrictions on movement in various countries and weaker consumer sentiment could cause a sharp worldwide decline in demand for apparel products. In addition, factories could be forced to suspend operations due to various regulations imposed by local governments where the factories are located or employee infections. Furthermore, logistics could become congested or disrupted due to movement restrictions, making it difficult to procure materials such as fabric required for production and to deliver products.」
COVID-19 has newly been disclosed as a particularly significant standalone risk. A sharp decline in demand, factory shutdowns and logistics congestion or disruption were anticipated, and the period’s disclosures describe actual temporary factory shutdowns, declining demand and a lower order backlog.