Risk of changes in profit margin composition by brand, product and sales channel
First written in FY2019-Q2. 12 of 20 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2027-H1.
World moved to the "Worse" side of this theme in 2019.
1 other company's latest entry also says "Other".
- FY2027-H1Non-apparel and newly consolidated businesses offset weak apparel performanceAnnual 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.」
Although weakness remained in the apparel brands' profitability and sales mix, 2 newly consolidated companies, Circular and Right-on, provided an offset while improving profitability. - FY2026MitigatedAnnual report
「Meanwhile, the platform business achieved substantial profit growth, helped by the contribution of エムシーファッション㈱, which was consolidated at the end of February 2025, among other factors. Together with lifestyle brands, which performed well within the brand business, this was viewed as evidence that the company had made further progress in shifting to a more diversified earnings structure that is less susceptible to changes in specific business conditions.」
The company explained that the weak performance of apparel brands was offset by higher profit in the platform business, including エムシーファッション, and in the lifestyle brands, advancing the diversification of the earnings structure. - FY2026-H1MitigatedAnnual report
「Meanwhile, the platform business achieved substantial profit growth, helped by the contribution of エムシーファッション㈱, which was consolidated at the end of February 2025, among other factors, while the digital business also contributed steadily to earnings. As a result, non-apparel businesses, including the lifestyle brands, strongly offset the weak performance of the apparel brand business, securing year-on-year profit growth at every level of the income statement from core operating profit downward for the group as a whole.」
Although some apparel businesses struggled, non-apparel businesses, including the platform, digital and lifestyle businesses, offset the weakness, resulting in year-on-year profit growth at every level of the group income statement. - FY2025MitigatedAnnual report
「Specifically, although weakness in some apparel businesses somewhat offset the strong performance of the lifestyle business, substantial profit growth in the digital and platform businesses strongly drove group earnings. As a result, core operating profit reached a record high since the relisting, surpassing the previous record for the first time in 5 fiscal years.」
Although some apparel businesses struggled, higher profit in the digital and platform businesses drove group earnings and offset the change in the profitability mix. - FY2024-Q3MitigatedAnnual report
「As a result, the brand business recorded revenue of ¥143.394 billion, up 5.3% year on year, including external revenue of ¥141.231 billion, up 5.6%, and core operating profit, or segment profit, of ¥11.126 billion, up 11.7%, resulting in higher revenue and profit.」
Although profitability risks arising from the mix of brands, products and sales channels remained, the brand business achieved higher revenue and profit, with particularly notable improvement in the Mid-Low brands. - FY2023MitigatedAnnual report
「As a result, the brand business recorded revenue of ¥184.705 billion, up 28.4% from the previous fiscal year, including external revenue of ¥181.379 billion, up 29.0%, and core operating profit, or segment profit, of ¥10.019 billion, up 223.5%, resulting in higher revenue and profit.」
Although profitability risks arising from the mix of brands, products and sales channels remained, the brand business achieved substantial growth in both revenue and profit through full-price sales, OMO, the recovery of existing stores and the effects of consolidating Narumiya International, among other factors. - FY2023-Q3MitigatedAnnual report
「As a result, the brand business reported revenue of ¥136.230 billion, up 28.0% year on year, including external revenue of ¥133.772 billion, up 28.7%, and core operating profit, or segment profit, of ¥9.959 billion, up 207.8%, resulting in higher revenue and profit.」
In response to profitability risks arising from the mix of brands, products and sales channels, revenue and profit in the brand business improved from the same period of the previous year through full-price sales, the horizontal rollout of successful OMO initiatives and the consolidation of Narumiya International, among other factors. - FY2023-Q2MitigatedAnnual report
「As a result, the brand business recorded revenue of ¥82.956 billion, up 28.4% year on year, including external revenue of ¥81.358 billion, up 29.0%, and core operating profit, or segment profit, of ¥3.010 billion, compared with a core operating loss, or segment loss, of ¥2.657 billion in the previous fiscal year, resulting in higher revenue and profit.」
In response to profitability risks associated with the post-restructuring store and brand mix, the brand business turned from a loss in the same period of the previous year to profit of ¥3.010 billion through full-price sales, OMO and the consolidation of Narumiya International, among other factors. - FY2023-Q1MitigatedAnnual report
「As a result, the brand business reported revenue of ¥43.923 billion, up 27.7% year on year, including external revenue of ¥43.184 billion, up 28.0%, and core operating profit, or segment profit, of ¥4.338 billion, up 246.2%, resulting in higher revenue and profit.」
The brand business improved both revenue and profit from the structural reform and pandemic-affected period of the previous year, with core operating profit rising 246.2% year on year. - FY2022MitigatedAnnual report
「As a result, although the series of structural reforms caused revenue to decline, they contributed to higher profit. The brand business recorded revenue of ¥143.905 billion, down 5.4% year on year, including external revenue of ¥140.606 billion, down 5.4%, and core operating profit, or segment profit, of ¥3.097 billion, compared with a core operating loss, or segment loss, of ¥10.089 billion in the previous fiscal year, resulting in lower revenue but higher profit.」
Although the decline in revenue resulting from the structural reforms continued, the brand business turned from a core operating loss of ¥10.089 billion in the previous year to core operating profit of ¥3.097 billion. - FY2022-Q3MitigatedAnnual report
「As a result, although the series of structural reforms caused revenue to decline, they contributed to higher profit, while customer traffic also recovered. The brand business recorded revenue of ¥106.427 billion, down 5.1% year on year, including external revenue of ¥103.981 billion, down 5.1%, and core operating profit, or segment profit, of ¥3.235 billion, compared with a core operating loss, or segment loss, of ¥7.196 billion in the previous fiscal year, resulting in lower revenue but higher profit.」
Although the decline in revenue resulting from the structural reforms continued, the brand business turned from a core operating loss to core operating profit of ¥3.235 billion as a result of margin improvements and the effects of the reforms. - FY2022-Q2MitigatedAnnual report
「As a result, although the series of structural reforms caused revenue to decline, they contributed to higher profit. The brand business recorded revenue of ¥64.630 billion, down 2.3% year on year, including external revenue of ¥63.070 billion, down 2.2%, and a core operating loss, or segment loss, of ¥2.657 billion, an improvement of ¥7.456 billion year on year, resulting in lower revenue but higher profit.」
Although the structural reforms reduced revenue, the brand business's core operating loss improved by ¥7.456 billion year on year. The business nevertheless remained in a loss position of ¥2.657 billion. - FY2022-Q1MitigatedAnnual report
「Against this backdrop, apparel brands focused on profitability during the first quarter of the current fiscal year by pursuing full-price sales across both physical stores and e-commerce, seeking to improve earnings power. In particular, while the company struggled to recover customer numbers mainly at urban department stores and locations around stations and terminals that had previously attracted large numbers of customers, signs of recovery began to emerge, including steady sales at "SHOO・LA・RUE," which is primarily operated in neighborhood shopping centers.」
Although customer traffic continued to recover slowly in central-city department stores and areas around train stations, signs of improvement emerged in the brand business's earnings mix as a result of profit-focused sales and solid sales by Shurarun. - FY2021Full-year loss in the brand businessAnnual report
「As a result, the brand business was significantly affected by the temporary store closures in the first quarter, among other factors, and recorded revenue of ¥161.188 billion, down 26.2% year on year, including external revenue of ¥158.042 billion, down 26.2%, and a core operating loss, or segment loss, of ¥10.817 billion, a deterioration of ¥18.204 billion year on year, resulting in lower revenue and a loss.」
Due to changes in the brand and channel mix, store closures and lower demand for outdoor clothing, the brand business recorded a 26.2% full-year decline in revenue and a core operating loss of ¥10.817 billion. - FY2021-Q3Cumulative losses continued; third-quarter profitabilityAnnual report
「As a result, the brand business was significantly affected by the temporary store closures in the first quarter, among other factors, and recorded revenue of ¥118.707 billion, down 29.8% year on year, including external revenue of ¥116.208 billion, down 30.0%, and a core operating loss, or segment loss, of ¥7.841 billion, a deterioration of ¥18.293 billion year on year, resulting in lower revenue and a loss.」
On a cumulative basis, revenue in the brand business fell 29.8% and the business recorded a core operating loss of ¥7.841 billion. On a standalone basis for the third quarter, however, segment profit was ¥2.818 billion, returning to profitability for the quarter. - FY2021-Q2MaterialisedAnnual report
「As a result, the brand business was significantly affected by the temporary store closures in the first quarter, among other factors, and recorded revenue of ¥70.236 billion, down 35.7% year on year, including external revenue of ¥68.650 billion, down 36.0%, and a core operating loss, or segment loss, of ¥10.659 billion, a deterioration of ¥15.079 billion year on year, resulting in lower revenue and a loss.」
Due to changes in the channel and brand mix and the impact of store closures, revenue in the brand business fell by 35.7% and the business recorded a core operating loss of ¥10.659 billion. - FY2020-Q3MaterialisedAnnual report
「As a result, although lifestyle goods brands and others less affected by temperature fluctuations remained solid, the brand business recorded lower revenue but higher profit, with revenue of ¥169.681 billion, down 1.2% year on year, including external revenue of ¥166.281 billion, down 0.8%, and core operating profit, or segment profit, of ¥10.373 billion, up 10.0%. This reflected the aftereffects of the consumption tax increase, difficult winter sales for apparel brands, and the fact that initiatives addressing growth challenges were still under way.」
The brand business actually experienced a decline in revenue because apparel brands struggled during the winter sales campaign. - FY2019MaterialisedAnnual report
「As a result, mainly because Mid-Low struggled with full-price sales and discount sales increased in the first half, revenue in the brand business was ¥200.657 billion, down 5.7% from the previous fiscal year, including external revenue of ¥195.779 billion, down 3.5%, while core operating profit, or segment profit, was ¥9.409 billion, down 8.9%.」
Mid-Low, which tends to have lower margins, struggled with full-price sales, and the increase in discount sales resulted in an actual decline in revenue and profit in the brand business for the full year. - FY2019-Q3MaterialisedAnnual report
「As a result, mainly because Mid-Low struggled with full-price sales and discount sales increased, revenue in the brand business was ¥149.239 billion, down 6.9% year on year, including external revenue of ¥145.655 billion, down 4.7%, while core operating profit, or segment profit, was ¥9.2 billion, down 13.7%.」
Mid-Low, which tends to have lower margins, struggled with full-price sales, and the increase in discount sales resulted in an actual decline in revenue and profit in the brand business. - FY2019-Q2First statedAnnual report
「Although our Group seeks to concentrate management resources to optimize portfolio management, sales of high-margin brands, products, or sales channels may decline depending on customer needs, store traffic, or store-opening policies, potentially affecting our Group's performance and financial position.」
Separately identifies differences in margins by brand, product, and sales channel and the risk of weak sales in higher-margin areas.