Risk of Slow-Moving Shoe Inventory and Valuation Losses
First written in FY2021. 1 of 7 entries say "Advanced", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「For the current consolidated fiscal year, the amount of inventory write-downs due to declining profitability recorded in cost of sales on the consolidated income statement was ¥572 million. Of this amount, ¥253 million related to “merchandise and finished goods.”」
Inventory write-downs declined from ¥590 million in the previous fiscal year to ¥572 million, while the write-downs for merchandise and finished goods in the shoe business declined from ¥322 million to ¥253 million. However, the assessment of saleability in light of the end of domestic production continues. - 2026-06-02Cited as achievedGeneral Meetings of Shareholders
「Products and finished goods in the Shoes BU are final consumer goods, ranging from children's products such as the Shunsoku brand to men's and women's products such as the Achilles Sorbo brand. Each brand offers a diverse range of product numbers, colors and sizes, resulting in more items than other businesses. Because the business is also susceptible to external factors such as market conditions and weather, inventory tends to accumulate, which may materially affect the valuation of products and finished goods in inventory.」
The company reiterated the characteristics of the business and the valuation method in describing the risk of stagnant shoe inventories and inventory valuation. The current-period valuation loss on products and finished goods in the Shoes BU was ¥253 million. - FY2025WorsenedAnnual report
「For the current consolidated fiscal year, the amount of inventory write-downs due to declining profitability recorded in cost of sales on the consolidated income statement was ¥590 million. Of this amount, ¥322 million, or approximately 50%, related to “merchandise and finished goods.”」
Inventory write-downs increased from ¥307 million in the previous fiscal year to ¥590 million. The company also recorded write-downs based on expected sales volumes following the end of domestic shoe production. - FY2024Update to inventory write-down amountAnnual report
「For the current consolidated fiscal year, the amount of inventory write-downs due to declining profitability recorded in cost of sales on the consolidated income statement was ¥307 million. Of this amount, ¥278 million, or approximately 90%, related to “merchandise and finished goods.”」
Inventory write-downs totaled ¥307 million, of which ¥278 million related to merchandise and finished goods. Both the total amount and the write-downs for merchandise and finished goods declined from the previous year. - FY2023Update to inventory write-down amountAnnual report
「For the current consolidated fiscal year, the amount of inventory write-downs due to declining profitability recorded in cost of sales on the consolidated income statement was ¥336 million. Of this amount, ¥305 million, or approximately 90%, related to “merchandise and finished goods.”」
For inventory valuation risk, write-downs totaled ¥336 million, of which ¥305 million related to merchandise and finished goods. Although the total declined from the previous year, the proportion related to merchandise and finished goods rose to approximately 90%. - FY2022AdvancedAnnual report
「For the current consolidated fiscal year, the amount of inventory write-downs due to declining profitability recorded in cost of sales on the consolidated income statement was ¥360 million. Of this amount, ¥274 million, or approximately 80%, related to “merchandise and finished goods.”」
The company disclosed actual inventory valuation risk, centered on shoe inventories, consisting of ¥360 million in write-downs for the current fiscal year, of which ¥274 million related to merchandise and finished goods. - FY2021First statedAnnual report
「“Merchandise and finished goods” in the shoe business are final consumer products, ranging from children’s products under brands such as Shunsoku to men’s and women’s products under brands such as Achilles SORBO. Each brand carries a wide variety of model numbers, colors and sizes, resulting in a larger number of products than in the other businesses. The business is also susceptible to external factors such as market conditions and weather, which tends to result in stagnant inventories and may have a material impact on the valuation of “merchandise and finished goods” in inventories.」
The potential for stagnant shoe inventories was identified independently for the first time as a significant accounting-estimate risk, and an inventory write-down of ¥383 million was recorded for the current fiscal year.