Dependence on special demand for third-party products and declining margins
First written in FY2019. 3 of 5 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2021.
Vixton moved to the "Worse" side of this theme in 2019.
1 other company's latest entry also says "Worsened".
- FY2021WorsenedAnnual report
「Gross profit margin was 48.5%, down 5.6 percentage points from the previous consolidated fiscal year. This was due to the lower proportion of sales accounted for by proprietary products, which have a higher gross margin.」
The gross profit margin fell 5.6 percentage points year on year as the proportion of sales accounted for by proprietary products declined. The dependence on third-party products and the lower profit margin identified from the previous year continued in the full-year results. - FY2020-Q3MaterialisedAnnual report
「The direct-to-consumer business benefited from special demand for cleansing products in the previous fiscal year, but that effect disappeared from the cumulative third-quarter consolidated period. In addition, sales of the Company's own cosmetics-related products declined year on year through catalog, store, and China sales channels. Revenue was ¥1,843 million, down ¥842 million year on year, and the business recorded an operating loss of ¥29 million, compared with operating income of ¥132 million in the same quarter of the previous year.」
In addition to the disappearance of special demand for cleansing products, declines in catalogue sales, store sales and sales in China emerged, and the direct-to-consumer business turned from an operating profit in the previous year to an operating loss. - FY2020-Q2MaterialisedAnnual report
「The direct-to-consumer business benefited from special demand for cleansing products in the previous fiscal year, but that effect disappeared from the cumulative second-quarter consolidated period. In addition, catalog sales stagnated and store sales remained weak for the Company's own cosmetics-related products. Revenue was ¥1,249 million, down ¥535 million year on year, and the business recorded an operating loss of ¥20 million, compared with operating income of ¥88 million in the same quarter of the previous year.」
The previously identified dependence on special-demand sales of third-party products continued to be affected by the disappearance of the special-demand effect, which has materialised as sluggish catalogue and store sales of proprietary cosmetics and a ¥20 million operating loss. - FY2020-Q1MaterialisedAnnual report
「The direct-to-consumer business benefited from special demand for cleansing products in the previous fiscal year, but that effect disappeared from the cumulative first-quarter consolidated period. In addition, sales of the Company's own cosmetics-related products, particularly through stores, remained weak. As a result, revenue was ¥570 million and the business recorded an operating loss of ¥10 million.」
The previously identified dependence on special-demand sales of third-party products materialised as the actual disappearance of the special-demand effect for cleansing products, sluggish store sales of proprietary cosmetics, and a ¥10 million operating loss in the direct-to-consumer business. - FY2019First statedAnnual report
「In the fiscal year ended March 2019, special demand for third-party cleansing products resulted in a substantial increase in revenue, and third-party products came to account for a significant proportion of total revenue. As a result, revenue increased, but the profit margin declined.」
Revenue increased due to special demand for cleansing products and a higher proportion of third-party products, while margins actually declined; increasing the sales ratio of the company’s own products is being pursued as a response.