The overseas business's return to profitability and structural losses in China in the first quarter
First written in FY2017-Q1. 13 of 38 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2027-H1.
AEON Fantasy moved to the "Worse" side of this theme in 2021.
The whole theme swung hardest in 2025: 1 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「The overseas business secured higher profit through strong performance at new stores opened and existing stores revitalized in the previous fiscal year in Indonesia, thorough cost control in Thailand and the continued structural reforms in China.」
Operating profit in the overseas businesses, including China, improved from a loss in the same period of the previous year due to structural reforms and other measures. The operating loss in the China business narrowed from ¥653 million in the same period of the previous year to ¥314 million. - FY2026MitigatedAnnual report
「The China business reported sales of ¥2,850 million, down 41.0% from the previous fiscal year, and an operating loss of ¥1,368 million, a reduction of ¥1,683 million from the ¥3,052 million operating loss in the previous year.」
Although sales in the China business declined, the operating loss narrowed from ¥3,052 million to ¥1,368 million, a reduction of ¥1,683 million, due to the effects of structural reforms, the closure of unprofitable stores and cost reductions. - FY2026-H1MitigatedAnnual report
「The China business continued implementing measures under the profit improvement plan formulated at the end of the previous fiscal year, including the closure of unprofitable stores, cost reductions and the revitalization of playgrounds, from the first quarter onward. All measures are progressing smoothly.」
The China business continued closing unprofitable stores, reducing costs and revitalizing playgrounds, narrowing the operating loss from ¥1,222 million in the same period of the previous year to ¥653 million. Meanwhile, sales fell 40.5% year on year. - FY2025WorsenedAnnual report
「The China business reported sales of ¥4,829 million, down 26.0% from the previous fiscal year, and an operating loss of ¥3,052 million, compared with an operating loss of ¥2,343 million in the previous fiscal year.」
Sales in the China business fell 26.0%, and the operating loss widened from ¥2,343 million to ¥3,052 million. The company closed 82 unprofitable stores and is proceeding with their conversion to more competitive playgrounds. - FY2025-H1WorsenedAnnual report
「The China business reported sales of ¥2,865 million, down 24.8% year on year, and an operating loss of ¥1,222 million, compared with an operating loss of ¥583 million in the same period of the previous year, for the interim consolidated accounting period.」
Sales in the China business fell 24.8% year on year, while the operating loss widened from ¥583 million in the same period of the previous year to ¥1,222 million. - FY2025-Q1WorsenedAnnual report
「Although the impact of infectious diseases that spread mainly among children has been almost eliminated since September last year, economic activity originating from the real estate downturn remains sluggish. As a result, sales for the first quarter of the current fiscal year were ¥1,190 million, down 17.8% year on year.」
While the impact of infectious diseases was almost eliminated, the slowdown in economic activity stemming from the real estate downturn caused sales in the China business to fall 17.8% year on year. The operating loss was ¥729 million, widening from ¥558 million in the same period of the previous year. - FY2024MitigatedAnnual report
「The recovery in sales in the China business was delayed by economic uncertainty in China and a decline in the number of child visitors due to the spread of infectious diseases. Sales for the period were ¥6,527 million.」
Although the China business remained loss-making at the operating level, the operating loss improved by ¥439 million from the previous fiscal year due to the closure of unprofitable stores and cost reductions. - FY2024-Q3MitigatedAnnual report
「Sales in the China business stagnated due to economic uncertainty and a decline in the number of child visitors following the spread of infectious diseases. However, operating profit improved by ¥538 million from the same period of the previous year through the opening of strategic small-format stores with high ROI, the closure of unprofitable stores and cost reductions.」
Although the decline in visitors and sluggish sales continued in the China business, the operating loss narrowed from ¥2,027 million in the same period of the previous year to ¥1,489 million through the opening of strategic small-format stores, the closure of unprofitable stores and cost reductions. - FY2024-Q2MitigatedAnnual report
「Sales in the China business stagnated from July onward, but operating profit improved by ¥613 million year on year after the company closed unprofitable stores and reduced expenses. In addition, following the opening of strategically important small-format stores with high ROI, same-store sales for the six-month period of the second quarter of the consolidated fiscal year were 139.3% of the level in the same period of the previous year.」
While sales in the China business have stagnated since July, operating profit improved by ¥613 million from the same period of the previous year due to the closure of unprofitable stores and cost reductions. - FY2024-Q1MitigatedAnnual report
「Operating profit in the China business improved by ¥144 million year on year during the nine-month period of the first quarter of the consolidated fiscal year. Including the approximately ¥500 million loss from store suspensions recorded as an extraordinary loss during the nine-month period of the first quarter of the previous consolidated fiscal year, operating profit improved by ¥643 million on an underlying basis.」
Although the China business continued to record an operating loss, it improved by ¥144 million year on year, or by ¥643 million on an underlying basis including the previous fiscal year's store suspension losses. - FY2023WorsenedAnnual report
「As a result, the China business reported revenue of ¥485.8 million, down 37.1% year on year, and an operating loss of ¥2,782 million for the fiscal year, compared with an operating loss of ¥1,230 million in the previous fiscal year.」
The annual operating loss in the China business widened from ¥1,230 million to ¥2,782 million due to temporary closures and other effects of the zero-COVID policy. - FY2023-Q3WorsenedAnnual report
「In the China business, the continued lockdown restrictions and strict movement controls under the zero-COVID policy led to an increase in the number of temporarily closed stores and a sharp decline in customer traffic from September onward. Under extremely challenging conditions, with third-quarter consolidated accounting-period same-store sales at 47.7% of the level in the same period of 2019, the company worked to reduce costs by negotiating rent reductions, limiting investment and reviewing staffing allocations.」
The China business saw same-store sales fall to 47.7% of the level in the same period of 2019 as the number of temporarily closed stores increased and customer traffic declined. The cumulative operating loss widened to ¥2,027 million from ¥926 million in the same period of the previous year. - FY2023-Q2WorsenedAnnual report
「As a result, the China business reported revenue of ¥261.3 million, down 34.6% year on year, and an operating loss of ¥1,196 million for the six-month period of the second quarter of the consolidated fiscal year, compared with an operating loss of ¥469 million in the same period of the previous year.」
The China business was affected by movement restrictions under the zero-COVID policy, with revenue down 34.6% year on year and an operating loss of ¥1,196 million, representing a wider loss than in the same period of the previous year. - FY2022-Q3WorsenedAnnual report
「As a result, the China business reported revenue of ¥574.6 million, up 31.2% year on year, and an operating loss of ¥926 million for the nine-month period of the third quarter of the consolidated fiscal year, compared with an operating loss of ¥272 million in the same period of the previous year.」
Although revenue in the China business increased 31.2% year on year, the operating loss widened from ¥272 million in the same period of the previous year to ¥926 million. Cumulative losses worsened despite the recovery in sales resulting from the resumption of operations and sales initiatives. - FY2022-Q2WorsenedAnnual report
「As a result, the China business reported revenue of ¥399.4 million, up 59.1% year on year, and an operating loss of ¥469 million for the six-month period of the second quarter of the consolidated fiscal year, compared with an operating loss of ¥155 million in the same period of the previous year.」
Although revenue in the China business increased 59.1% year on year, the operating loss widened from ¥155 million in the same period of the previous year to ¥469 million. - FY2022-Q1WorsenedAnnual report
「Customer traffic in the China business recovered as the number of COVID-19 cases declined, and first-quarter same-store sales were up substantially at 114.3% of the level recorded two years earlier. As a result, the China business reported revenue of ¥164 million, up 400.4% year on year, and an operating loss of ¥516 million for the nine-month period of the first quarter of the consolidated fiscal year, compared with an operating loss of ¥377 million in the same period of the previous year.」
Although customer traffic and same-store sales in the China business recovered, the operating loss widened from ¥377 million in the same period of the previous year to ¥516 million. - FY2021-Q3WorsenedAnnual report
「As a result, the China business reported revenue of ¥437.9 million, down 31.1% year on year, and an operating loss of ¥272 million for the nine-month period of the third quarter of the consolidated fiscal year, compared with an operating loss of ¥864 million in the same period of the previous year.」
Although the China business's operating loss narrowed year on year, it still recorded an operating loss of ¥272 million for the nine-month period of the third quarter after returning to profitability in the second quarter. - FY2021-Q2China business returns to quarterly profitabilityAnnual report
「The company also continued to reduce expenses, and operating profit for the second quarter consolidated accounting period was ¥222 million.」
Although the China business recorded a cumulative operating loss of ¥155 million, it generated operating profit of ¥222 million in the second quarter as operations resumed and expenses were reduced. - FY2021-Q1China's operating loss driven by COVID-19-related temporary closuresAnnual report
「In the China business, the company temporarily closed all stores from 28 January, the fourth quarter of the previous consolidated fiscal year, giving top priority to directives from the Chinese authorities concerning COVID-19 and the safety of customers and employees. As containment measures by the Chinese authorities progressed, permission to gradually resume operations was granted, beginning in southern regions, from 22 March.」
In addition to the previously cited seasonal and structural losses and competition in China, the complete closure of all stores was the main factor behind the operating loss this quarter. The operating loss was ¥377 million, down from ¥762 million in the same period of the previous year. - FY2020-Q3WorsenedAnnual report
「As a result, the China business reported revenue of ¥635.5 million, down 3.2% year on year, and an operating loss of ¥864 million for the nine-month period of the third quarter of the consolidated fiscal year, compared with an operating loss of ¥465 million in the same period of the previous year.」
While same-store sales in the China business recovered, the operating loss for the nine-month period of the third quarter widened to ¥864 million from ¥465 million in the same period of the previous year. - FY2020-Q2China business recovering, but cumulative operating loss remainsAnnual report
「The China business saw same-store sales growth fall sharply, down 22.6%, in the first quarter due to lower average selling prices following the rebound from the discount sale held in the fourth quarter of the previous fiscal year. However, in the second quarter, same-store sales growth recovered to a 2.8% decline. This was supported by the introduction of machines using a new redemption method implemented from the current period, under which points earned based on game results can be exchanged for prizes. As of the end of August, the machines had been introduced at 47 stores, where year-on-year sales increased 22.4%, while the revitalization of 22 Kidsーナ stores increased year-on-year sales by 15.9% after revitalization.」
Same-store sales in the China business recovered from a 22.6% decline in the first quarter to a 2.8% decline in the second quarter. On a cumulative basis, however, the operating loss was ¥366 million. - FY2020-Q1WorsenedAnnual report
「The China business was significantly affected by lower average selling prices following the rebound from the discount sale held in the previous quarter, while intensified competition with other operators in shopping centers caused same-store sales growth to fall sharply, down 22.6%.」
The China business was affected by both lower average selling prices following the discount sale and intensified competition with other operators, causing the operating loss to widen to ¥762 million from ¥235 million in the same period of the previous year. - FY2019-Q3China's operating loss widenedAnnual report
「In addition to structurally incurring an operating loss because the third-quarter accounting period, like the first quarter, has a low index relative to annual sales, the China business was affected by a decline in same-store sales growth during the period as recovery in average selling prices following the discount sale held during the summer holiday was delayed.」
In addition to the structural operating loss, the China business was affected by a delayed recovery in average selling prices following the discount sale, causing the cumulative operating loss to widen to ¥465 million, compared with an operating loss of ¥66 million in the same period of the previous year. - FY2019-Q2AdvancedAnnual report
「The China business reported revenue of ¥5,070 million, up 21.2% year on year, and operating profit of ¥337 million, up 162.0%, for the six-month period of the second quarter of the consolidated fiscal year.」
The China business advanced new store openings and store revitalization, and operating profit rose 162.0% year on year to ¥337 million. No structural loss of the kind seen in the first quarter was reported, and the six-month period saw revenue and earnings growth. - FY2019-Q1AdvancedAnnual report
「The first quarter of the China business has the lowest index relative to annual sales and is structurally loss-making, but the loss was smaller than planned. Malaysia, the Philippines and Indonesia secured year-on-year operating profit growth, while Thailand remained loss-making at the operating level but improved substantially year on year. Vietnam, which was converted to a directly operated business last year through the acquisition of operating rights, also achieved operating profitability.」
China's first-quarter operating loss was ¥235 million, narrowing from ¥236 million in the same period of the previous year. In addition to improvements in the ASEAN countries, Vietnam also achieved operating profitability. - FY2018-Q3AdvancedAnnual report
「In China, the company opened 26 new stores during the nine-month period of the third quarter of the consolidated fiscal year. The third quarter consolidated accounting period is structurally loss-making because the sales index is low, but the company expects results for the full year to be in line with the plan. The Philippines and Indonesia also achieved operating profitability for the first time on a nine-month basis.」
While indicating that China's structural operating loss is expected to conclude in line with the plan, the company reported that the Philippines and Indonesia achieved operating profitability for the first time on a nine-month basis. - FY2018-Q2AdvancedAnnual report
「The China business opened 16 new stores during the six-month period of the second quarter of the consolidated fiscal year. Same-store growth was also strong at 10.3%, resulting in substantial revenue and earnings growth.」
Same-store sales in China increased 10.3%, and operating profit rose by ¥121 million year on year to ¥128 million. - FY2018-Q1AdvancedAnnual report
「In the China business, the company opened 6 new stores during the nine-month period of the first quarter of the consolidated fiscal year, increasing revenue and improving operating profit. The first quarter of the China business is structurally loss-making because it has the lowest index relative to annual sales, but the loss was smaller than planned.」
China continued to incur a structural operating loss in the first quarter, but the loss narrowed from ¥241 million in the same period of the previous year to ¥236 million. In ASEAN, the Philippines and Indonesia posted operating profits for the first time in a first quarter, while Thailand's same-store growth remained positive for 8 consecutive months. - FY2017AdvancedAnnual report
「Operating profit was positive for the second consecutive period. In China, the company opened 39 stores during the period and achieved both revenue growth and earnings growth.」
The overseas business posted operating profit of ¥82 million, marking its second consecutive profitable period, while China opened 39 stores and achieved revenue and earnings growth. - FY2017-Q3RestatedAnnual report
「In China, the company opened 31 stores during the nine-month period of the third quarter of the consolidated fiscal year. The third quarter consolidated accounting period is structurally loss-making because the sales index is low, but progress is in line with the plan.」
The company continued to give the same explanation regarding China's seasonal and structural operating losses. While the overseas business as a whole recorded a segment loss of ¥256 million, it reported revenue growth and improved operating profit in the ASEAN countries. - FY2017-Q2AdvancedAnnual report
「In China, the company opened 20 stores during the six-month period of the second quarter of the consolidated fiscal year, exceeding the number opened in the previous year, and achieved both operating profitability and earnings growth.」
Following the overseas business's return to profitability last year, China also posted an operating profit and earnings growth during the six-month period of the second quarter. The overseas business as a whole, however, recorded a segment loss of ¥69 million. - FY2017-Q1First statedAnnual report
「The company is working to aggressively expand the overseas business, which became profitable last year. In China, the first quarter is structurally a period of operating losses because the annual sales index is low, but progress is in line with the plan.」
The company highlighted the overseas business's return to profitability last year, while explaining that China incurs seasonal and structural operating losses in the first quarter.