Risk of fluctuations in performance due to the seasonality of fashion products
First written in FY2018. 10 of 18 entries say "Materialised", first in FY2020-Q3. Latest entry: FY2027-H1.
World moved to the "Worse" side of this theme in 2025, 7 years after the typical company in this theme (2018).
The whole theme swung hardest in 2024: 22 of 30 companies on the "Worse" side.
21 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「In the B2C business, Circular performed well, and the 2 new consolidated subsidiaries mentioned above also contributed, accompanied by a substantial improvement in profitability. On the other hand, apparel brands failed to fully capitalize on opportunities because weak sales of summer products, particularly in June, offset the benefits of stronger full-price sales and cost structure reforms.」
Weak sales of summer products actually occurred at apparel brands, offsetting the benefits of stronger full-price sales and cost structure reforms. Meanwhile, Circular and the 2 new consolidated subsidiaries provided support. - FY2026MaterialisedAnnual report
「Revenue was sluggish, particularly for heavy clothing, due to the continued overall trend toward restrained consumption since the consumption tax increase in October, store closures caused by natural disasters, and the effects of a record warm winter.」
Seasonal and climate-related fluctuations in sales actually occurred, affecting annual results through weak sales of heavy clothing and a slowdown in the fourth quarter. - FY2026-H1MaterialisedAnnual report
「In addition to weak sales of some apparel brands during the spring and summer selling season, delays in switching from summer products during the hot autumn, for which preparations had been made in response to the previous year's lessons, also occurred,」
The progression of hot-autumn weather and delays in switching from summer products materialized as weak sales at apparel brands and failure to meet the profit plan. - FY2025MaterialisedAnnual report
「During the consolidated fiscal year, lifestyle brands performed well, but issues with products were evident among apparel brands. Their ability to adapt through product design and other measures was weak in response to the heatwave in August 2024, the unseasonably hot weather in September and October, and the subsequent delay in the start of the autumn and winter season,」
Insufficient adaptability in product design and assortment to the heatwave, unseasonably hot weather and delayed start to the autumn and winter season was actually cited as a factor affecting results for the year. - FY2025-H1Product assortment challenges during the inter-season periodAnnual report
「However, in the brand business centered on apparel brands, the assortment of late-summer and early-autumn products during the inter-season period, particularly in August, still presents challenges in both volume and quality. The company believes there is significant room to further increase profitability by offering products that accurately capture sales opportunities.」
As the prior year's effect of customers returning to stores runs its course, the assortment of late-summer and early-autumn products during the inter-season period was identified as a challenge in capturing sales opportunities related to seasonality. - FY2023-Q1Weather and demand for going out provided a tailwindAnnual report
「In addition, the transition from spring to summer products proceeded smoothly, supported by rising temperatures and an early end to the rainy season, resulting in substantial growth in same-store sales compared with the previous year.」
Rising temperatures and the early end of the rainy season supported the transition from spring to summer products and growth in same-store sales. - FY2022-Q3Recovery helped by favorable weatherAnnual report
「Against the backdrop of the lifting of the state of emergency and favorable weather and temperatures, demand for autumn and winter products, particularly apparel, remained strong. As a result, same-store sales were 5.7 percentage points higher than in the same period of the previous year.」
Regarding seasonality and weather risks, weather and temperatures supported demand for autumn and winter products, and same-store sales in the third-quarter accounting period were 5.7 percentage points higher than in the same period of the previous year. - FY2020-Q3MaterialisedAnnual report
「Revenue was sluggish, particularly for heavy clothing, due to the continued overall trend toward restrained consumption since the consumption tax increase in October, store closures caused by natural disasters, and the effects of a record warm winter.」
Sales of heavy clothing were weak because of a record warm winter, and seasonal and climate risks materialized as actual sales underperformance. - FY2020-Q2RestatedAnnual report
「Because the Group's business is centered on the sale of apparel and other products, its results fluctuate significantly by season, and profit in the first and third consolidated fiscal quarters tends to be higher than in the other consolidated fiscal quarters.」
The company continues to recognize the seasonality of profits being concentrated in the first and third quarters. - FY2019RestatedAnnual report
「Because Japan has pronounced seasonal changes in climate, the Group has also developed seasonal merchandising (MD), and its sales and profits tend to be concentrated in the first and third quarters.」
The concentration of sales and profits in the first and third quarters, and the risk of failing to meet targets because of warm winters or an incorrect reading of trends, continue to be recognized. - FY2019-Q2WorsenedAnnual report
「Because Japan has pronounced seasonal changes in climate, the Group has also developed seasonal merchandising (MD), and its sales and profits tend to be concentrated in the first and third quarters. Accordingly, if extremely warm winters or an incorrect reading of trends prevent the Group from securing sufficient sales and profits in those quarters, this could affect its business results.」
In addition to the previously recognized concentration of results by quarter, the company specified the impact of failing to meet sales and profit targets because of extremely warm winters or an incorrect reading of trends. - FY2018First statedAnnual report
「Because seasonal changes in Japan's climate are distinct, our Group prepares seasonal merchandising plans, and our results tend to be weighted toward the first and third quarters.」
Identifies the concentration of earnings contributions in the first and third quarters as a new risk arising from seasonal merchandising.