Higher Procurement Costs and Supply Shortages Caused by Chinese Sourcing and Exchange-Rate Fluctuations
First written in FY2024. 4 of 5 entries say "Mitigated", first in FY2025. Latest entry: 2026-06-12.
The whole theme swung hardest in 2018: 2 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- 2026-06-12MitigatedFinancial results presentation
「Because private-label products are sourced in dollars or yuan, yen depreciation leads to higher costs. However, when the yen has depreciated sharply in the past, we have worked to minimize the impact on business performance by responding flexibly, including raising retail prices.」
Describes measures such as raising retail prices in response to the cost increase risk from yen depreciation on dollar- and yuan-denominated purchases. - FY2026MitigatedAnnual report
「For our products, we are negotiating procurement price revisions with overseas suppliers as well as domestic suppliers. We are also hedging foreign-exchange risk to a certain extent by securing multiple currency options for settlement.」
The company disclosed hedging measures against Chinese sourcing and foreign-exchange risks through procurement price negotiations and multiple currency options for settlement. - 2026-03-16MitigatedFinancial results presentation
「Because private-label products are sourced in dollars or yuan, yen depreciation leads to higher costs. However, when the yen has depreciated sharply in the past, we have worked to minimize the impact on business performance by responding flexibly, including raising retail prices.」
Recognized the risk of higher costs for private-label products due to yen depreciation and described measures such as raising retail prices. - FY2025MitigatedAnnual report
「We have secured multiple contract manufacturing plants and taken measures to reduce procurement prices and address shortages of procured products. However, if these events occur, our financial condition and operating results may be affected.」
The risks of higher prices and supply shortages associated with contract manufacturing in China remain, while the company has additionally disclosed measures including securing multiple contract manufacturing plants. - FY2024First statedAnnual report
「Because our PB products are sourced mainly from contract manufacturing plants in China, procurement unit costs may rise and shortages of procured products may occur due to increases in local labor costs and prices, higher container freight rates, environmental regulations imposed by the Chinese authorities, and export policies.」
The company disclosed risks of higher costs and supply shortages resulting from its dependence on contract manufacturing in China, including labor costs, prices, freight rates, environmental regulations and export policies.